We will continue to see the development of the network economy, from Facebook to Bitcoin to Tesla and beyond
Network economy firms like Apple, Google, Facebook and Tesla are today worth 10 times more than most countries, and 10 times more than industrial economy firms.
We will see the development of the network economy, from content networks like Facebook and YouTube, to money and Bitcoin networks, to energy and transportation networks like Tesla. We will see why Apple reached a value of $3 trillion, and Tesla $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. Because if Tesla is just a car company like General Motors, Mercedes or Honda, then why is it worth more than the market value of all three combined?
About twenty years ago, the social networks of decentralized content were founded, which were based 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 video and distribute it to billions of people on YouTube. Today, Elon Musk believes that every person can create decentralized energy based on solar panels or wind turbines or the giant batteries in their electric car.
After content social networks, Microsoft and Apple realized the enormous power of decentralized social networks. That’s why Microsoft bought LinkedIn at a price of $24 billion and reached a value of $2 trillion, and Apple founded iTunes, which is a social network for music, and AppStore, which is a social network of applications, reaching a value of $3 trillion. The social network is a huge source of big data which is the main source of wealth in the 21st century.
This is much more than a technological and economic revolution. This is a historical-civilizational revolution, just as we saw in millennia gone by:
1. The muscles of the man working with a hoe produced wealth from the land in the agricultural society.
2. Fuel produced wealth from the machine in the 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 networked society.
After content networks such as Facebook, YouTube, LinkedIn, and Twitter, the social network of decentralized money, Bitcoin, arose. Why did Bitcoin rise by more than 2,000 percent in two years (2019-2021), from $3,000 to $69,000?
Because Bitcoin is the money of the network generation. Gold was the global money for 5,000 years. In the industrial revolution of the modern era, gold-backed banknotes replaced gold. In 1971, the United States cancelled the peg of the dollar to gold, and since then the price of gold rose from $35 per ounce to $1,500 per ounce, and the world debt exceeded $100 trillion. Bitcoin was designed to stop the global economic decline. And created a whole new system of new concepts that appeared recently: Metaverse, NFT, WEB 3.0, Crypto, Blockchain, and more.
The main reason for the enormous power of the social networks of content, money, and energy is surprising and simple: the industrial revolution was created because of the appearance of the steam engine in the factory and in transportation. A machine equal to 100 horsepower. A network equals 100 engine power, therefore 10,000 horse power!
Dr. Asher Idan is an international lecturer with 40 years of experience in research lectures and consulting at Tel Aviv and Bar Ilan universities. He is the author of three books on futurism, technological innovation, networks and bitcoin.