We will continue to see the evolution of the network economy, from Facebook to Bitcoin to Tesla and more.
Companies in the digital economy such as Apple, Google, Facebook and Tesla are now worth 10 times more than most countries and 10 times more than companies in the industrial economy.
We will continue to see the evolution of the digital economy, from content networks like Facebook and YouTube, to monetary networks and Bitcoin, to energy and transportation networks like Tesla. We’ll see why Apple hit $3 trillion in value and Tesla hit $1 trillion.
Most people still think of Tesla as a car company, but it is primarily a social network of energy, just as Facebook is a social network of words and YouTube and TikTok are social networks of video. If Tesla is just a car company like General Motors, Mercedes or Honda, why is it worth more than the market value of these three companies combined?
About 20 years ago, decentralized social networks emerged with content that depended on a “television studio and a newspaper in your pocket” in the form of an iPhone. Every boy and girl could suddenly produce texts and videos and broadcast them to billions of people on YouTube. Today, Elon Musk believes that everyone can create decentralized energy from solar panels, wind turbines or the giant batteries in their electric car.
After social content networks, Microsoft and Apple realized the enormous power of decentralized social networks. That’s why Microsoft bought LinkedIn for $24 billion, reaching a $2 trillion valuation. Apple founded iTunes, which is a social network for music, and AppStore, which is a social network for applications, and reached a value of 3 trillion dollars. The social network is a huge source of big data, which is the most important source of wealth in the 21st century.
It is about much more than a technological and economic revolution. It is a historical-civilizational revolution that we have known over the past millennia:
1. The muscles of man working with a hoe produced the wealth of the land in the agricultural society.
2. Fuel has produced wealth from the machine in industrial society.
3. The artificial or biological neural network (the basis of deep artificial intelligence) produces a wealth of big data from the social network, in the network society.
After content networks such as Facebook, YouTube, LinkedIn and Twitter, the decentralized currency social network bitcoin emerged. Why has bitcoin increased by more than 2,000% in two years (2019-2021), from $3,000 to $69,000?
Because Bitcoin is the money of the network generation. Gold has been the world’s currency for 5,000 years. During the industrial revolution of the modern era, gold-backed banknotes replaced gold. In 1971, the United States freed the dollar for gold, and since then the price of gold has risen from $35 per ounce to $1,500 per ounce, and global debt has exceeded $100 trillion. Bitcoin was designed to stop global economic decline and created a whole new system of new concepts that have emerged recently: Metaverse, NFT, WEB 3.0, Crypto, Blockchain and more.
The main reason for the enormous power of social networks of content, money and energy is surprising and simple: the industrial revolution was created thanks to the appearance of the steam engine in the factory and in transport. A machine equivalent to 100 horsepower. A network is equal to 100 steam engines, i.e. 10,000 horsepower!
Dr. Asher Idan is an international lecturer with 40 years of experience in research conferences and consulting at Tel Aviv and Bar Ilan universities. He is the author of three books on futurism, technological innovation, networking and bitcoin.