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It is not the End of Facebook, it is the proof of the insane origin of it's value



The Crash is revealing that Facebook is no more than pyramid that can survive only by growing.



27.Jul.18 10:42 AM
By Jeff Bannister
Photo prabhatrayal.com

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It is not the End of Facebook, it is the proof of the insane origin of it's value
As virtually any successful startup company Facebook has struggled to earn some real profit from itís popularity. It has found it in the Big Data collaboration and targeted ads. As Big Data has led to the loss of privacy and a chain of the Cambridge Analytics scandals, and targeted ads were used by Russians to undermine the shaky building of the American democracy Ė in fact their only undermined the MSM control of the American society Ė the monetization droped.

Facebook, which uses everything their users type, post, like, dislike and comment to compile meaningful profile was targeted by the privacy campaign. It was not exactly a success. However itís true scale has been revealed by the quarterly report. And this report has carried devastating result on the hollow Ďcapitalizationí of the platform.

Thus, Facebook has become the first company ever to loose more than USD 100 billion in one trading day, while itís shares plunged by 19 percent. On the amazing side of this events lies the fact that the reports have not shown any devastating effects of the aforementioned factors. Quite the opposite: the report demonstrated that people are ready to give up freedom of speech, privacy and  dignity to keep liking the funny cats videos. What the report has actually shown is slowing down growth of the user base and slight drop of the total reactions of the users. Why it had such a devastating effect?

Well, at some point it was irrational. At some point it was intentional as many investors have shorted the overheated shares. But fundamentally it is revealing that Facebook is no more than pyramid that can survive only by growing and canít be stabilized. If it shows no growth it fails, like the very successful startup of mr. Ponzi back in time.



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