How Social Media Wags the Dog and How Blockchain Will Change Everything

Over the last 20 years I have been involved with advertising technology, copy writing, marketing, direct marketing, and just about every form of advertising that exists in America. I love advertising. I have a special place in my heart (and my wallet) for advertising and marketing. The creative aspects of advertising can be nothing short of brilliant; as is the case with the mathematics used in formulating and measuring marketing campaigns!

Historically (meaning: radio, print, TV) , you needed to justify advertising rates with circulation, readers, subscribers, etc. Nielsen built their entire business on providing TV/radio/internet publishers what was available in “old media”. Advertising with publishers was simple: if you wanted to reach an audience of 6MM parents and have the budget, you could find the right publications, shows, etc. and even narrow your market based upon the demographic overlay of the publishers’ audience. In other words, you want to sell baby clothes to parent… you advertise in Parents magazine, not Wild West Magazine. You’d do the opposite for your limited edition collectors coin.

Social Media ushered in a promise of having near real-time and (supposedly) far more accurate statistics. Suddenly, we weren’t talking about difficult to quantify metrics like “circulation” and “page views”. Social Media brought us the “follower” and “like” metrics (likes, reactions, upvotes, etc), which are the ultimate… They are the Jesus metric and ostensibly engagement.

Of course, bots are an issue, but there’s a larger issue with Social Media metrics: the value that followers and likes are afforded. Standard web metrics like page views/session and time on a page are the gold standard for content engagement, and followers + likes are supposed to provide the same for Social Media. Yet, followers and and likes have a serious shortcoming. I’ll get to that in a bit but first…

There are really only two true “value” measurements in modern technology: human time and processor power+time (which is easy to measure in electricity). Followers and likes doesn’t measure either of those as the human time it takes to follow is nominal as is the computer time). Not to mention the intent of a follower (e.g. Judas followers & Judas sharing). This is further exacerbated by the fact that most Social Media is “free”. Obviously, Social Media is not free. The cost is your data, the rights to your content, and being subjected to the network bubble that ensues. But I digress…

Following a profile on Social Media costs very little human or computer time. Same with likes/reactions. In fact, keeping up with those profiles requires very little human or computer time AND technology is making that time less and less with automation and AI. In other words, Social Media metrics of followers and likes have virtually no economic value (human + computer time). Even comments are questionable. (consider the @username comments that are prevalent in Social Media). Throw in the fact that followers and likes can be purchased through advertising and followers/likes can carry a negative economic value to the brand.

Yet, Social Media monetary value is measured in followers. “Influencers” are those with a greater number of followers and reactions on their media. Throw in bots and the fact that all Social Media algorithms formulate a bubble and it’s not difficult to figure out how to game the social media systems.

Social Media made formulas for determining relevance that is calculated based upon self referencing metrics that are easily gamed and also have little to no economic value. Social Media formulas are not based upon relevance derived by a premium on top of human and computer time.

Enter Social Media powered by tokenizing (e.g blockchain mining). Social Media no longer needs to be powered by advertising (although advertising does not go away). Users mine on their network(s) of choice and use their earnings to perform network interactions. Users are directly investing their computer time into their social network(s), even without consuming content or using the network.

Placing content on the network(s) requires exchanging/purchasing the content space on the network. Which is somewhat counter to social networks today that are paying content creators for their content via advertising.

So, why would anyone want this tokenized model when everything under today’s model is “free”?

  • Consuming content would also require an exchange/purchase, and content creators can place a premium on interacting with their content
  • Advertising/product placement would still exist and content creators have more powerful metrics (e.g. on average, I receive 500,000 tokens for every piece of content I produce) to provide advertisers such that the content creators can charge more
  • Content creators have the ability to set their own rates of consumption as well as the license of their content (permanent, time limitation, etc)
  • Helpers (think stackoverflow.com) would be able to determine if someone asking a question is paying a viable rate for them to provide their insight for tips. For example, User A tips well for the winning answer to a complex coding issue. Helper 1 sees that and is willing to provide more comprehensive advise than RTFM and is rewarded handsomely by User A for the sound advice
  • Advertising on the social networks would have smart contracts that could come with clauses making bot interactions and/or nefarious interactions much easier to punish
  • The social networks have control over all the tokens and can easily reverse/punish bot transactions, virtually eliminating the problem of bots. In other words, if a bot farm wants to provide mining for the social network so that the bot farm can produce and interact with content on a massive scale such that it would influence people, it will cost the bot farm considerably more computer time than it does now. Also, once the bot farm is determined to be a bot farm by the social network, the bot farm tokens can be confiscated by the social network and the bot farm content revoked. The bot farm loses everything and all users effected regain their tokens (providing additional incentive to the social network users to not tolerate bots). The bot farm would have to shift its mining elsewhere immediately or else it would continue paying the social network in mining resources (i.e. computer time).
  • Content creators of games would be able to tap into the mining power of the users playing their games to add a revenue source and help offset their costs to be part of the network.

Perhaps, users could also mine elsewhere and then transfer funds to their social network wallet of choice and exchange for tokens to interact on that network. This would open up an entire marketplace of services within the social network environment.

The value of a social network is now the amount of tokens created on it’s network * the exchange rate of those tokens on the open market. Followers and likes have measurable economic value, and Judas would be paying 30 tokens instead of earning tokens as a bot troll.

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How to be a Successful bitcoin Doomsdayer

It helps to be a Nobel laureate when you spout out economic nonsense. But, if you’re not able to milk your 2008 Nobel prize, here are the top ways to become a successful bitcoin doomsdayer:

  • It helps if you have some sort of “authority” on the subject: Nobel prize in economics, MBA, degree in finance, Instagram pictures of you on a boat, etc.
  • Start by claiming bitcoin is a bubble and even claim that you’ve been saying that for years.
  • Claim that you’ve been “right” about bitcion and cryptocurrency for years. You don’t need to have any proof of such claims, just make the claims.
  • Make nebulous claims like “this won’t end well” and “this bubble is about to burst”
  • Use words like parabolic
  • Make as many unsubstantiated claims of bitcion’s “true value” as you can. Just make up a number: $1,000… $3,000… Doesn’t matter if you understand the technology or not. Just make something up that sounds scary to people.
  • Be as vague as possible as to when the bitcoin bubble will burst. Remember, being an internet oracle doesn’t require specifics or even a month. Oracles are made by claims of “soon” and “imminent”.
  • Be as vague as possible as to what value the bitcoin crash will dip to. In fact, don’t even say what the crash will be. This way, when there’s a correction of 40% you can still claim oracle status! Definitely don’t make a 100% accurate prediction to the exact thousand dollar amount that BTC will drop to.
  • Use the word bubble at least 3-4 times every hour; even in conversations unrelated to bitcion
  • Make reference to the mythical tulip bubble
  • Bask in the glory of being right 4-5x per year about the bitcoin bubble when there’s a major correction in the budding cryptocurrency market every few months!
  • Bitcoin shame as much as possible on social media!

P.S. In Krugman’s defense, he does make a valid point that he doesn’t understand technology. He also makes a reasonable point that bitcoin lacks viability as a transactional currency. That is valid given BTC’s current limitations for handling massive tx volume and BTC’s high tx cost. BTC will either need to change or (more likely) be used as a store of large amounts of wealth and for large transactions (e.g. buying a house).

National Park Cryptocurrencies and Cryptocurrencies for Everyone

Four years ago, I wrote about how the national parks can avoid the next government shutdown. It was a bit shortsighted in retrospect. Rather than utilizing bonds, national parks (any any organization for that matter) should leverage cryptocurrencies. There are over 1,000 cryptocurrencies in existence today (most should be avoided).  But a park like Yosemite Nation Park fits the mold of being a perfect fit for a cryptocurrency.

A Yosemitecoin has a specific use for a specific purpose. Want to visit and park at Yosemite? Pay in Yosemitecoin. Want to stay at a lodge in Yosemite? Pay in Yosemitecoin. It’s important to the ecological health of Yosemite to limit the number of visitors per season/year, so having a cryptocurrency that is limited in availability during a season would allow the price/cost of Yosemitecoin to limit the exposure of the park.

Mining of Yosemitecoin could prove to be a profitable venture for miners depending upon how the rules are setup for Yosemitecoin mining and exchanging. Exchanging could help boost the overall budget available for Yosemite National Park and allow for the park to afford more resources to ensure the park is well maintained and employees at the park are well compensated. A Yosemitecoin could even serve as a long-term retirement investment vehicle for park employees.

Getting into details for all of this would require much more than a simple blog post. However, every national park, non-profits, and global organizations (such as the red cross) could greatly benefit from having their own cryptocurrency that furthers their cause.

How Detached From Reality Can Investors Be?

First, they really expected a Bush supported emergency bank bailout plan to just walk down the isles in the House. I’m sorry, but hasn’t the Bush administration been talking about the strength of the economy for the last several months? Years even? Given that they had their heads up their asses or were completely lying about the situation, why should be believe in any urgency about the bailout. Seeing as how they were completely wrong about the state of the economy for at least the last 18 months (the largest bank in the world – WAMU – doesn’t fail overnight folks), why are they suddenly right about the economy?

Then, this morning I read this article about a large slide in the manufacturing index. This should have been a no-brainer. If businesses can’t get money from their banks, they tap their other resource for capital: inventory. It’s a pretty simple business concept. Sell inventory and turn it into cash. Most businesses that sell products operate like this. Somehow, this is a foreign concept to the folks on Wall Street? Of course, in normal economic conditions businesses reinvest that revenue back into inventory. But if your bank is holding you by the gonads, you don’t buy more inventory. You keep the cash.

Good thing the fundamentals of our economy are strong.

McCain Has Really Bad Timing

I’m just saying…

Sure, he wants to clean up Wall Street, but the fundamentals of the economy are strong? Really?

That’s like saying the fundamentals of your small business is doing just fine right after your QuickBooks database got corrupt and you don’t have a backup since 2004.

Obama Proposes Subsidy for Big Oil

Often cited as having a better grip on economic issues, Barrack Obama surprisingly proposed a $50 million subsidy for big oil on Monday. Where have you spent your tax rebate check? My guess is that you’ve spent it (will spend it) at the gas pump. Guess who is making the money on higher gas prices? It isn’t your local (independently owned and operated) gas station. Obama tears into McCain for offering up a gas tax holiday (yes, a stupid idea), but his proposal to expand the tax refunds is no different: a subsidy for big oil.

How about we get politicians offering up real economic solutions. Solutions that are going to create more jobs rather than get us to spend more money on gas and useless crap from Walmart. How about some financial incentives for anyone who wants to solar panel their house! How about some tax credits for small businesses and entrepreneurs who are the heart of the American economy! What about spending that $50 million on helping people start or grow their businesses! Give me some real fiscal stimulus, Obama, not some watered-down version of McCain’s gas tax holiday.

Boycott the People’s Republic of New York

Communism has gotten hold of lawmakers in New York! This isn’t McCarthy style scare tactics folks, this is the real deal. One the surface, people might be thinking that the whole Amazon Tax thing is no big deal. Amazon might win, probably, perhaps, hopefully, right?

Think again!

New York is attacking the constitution of the United States. Furthermore, they are expecting our businesses to foot the bill for the constitutional challenge. Our businesses are going to have to pay to prove that our constitution protects us from the economic greed of lawmakers like those in New York. Yes, our businesses are footing the bill. I say New York should have to repay Amazon for ALL legal expenses if Amazon wins the lawsuit against New York. That should keep idiot lawmakers from abusing the power that we gave them!

I Can’t Say I Don’t Like to Say I Told You So

Today gives me yet another day to gloat about the idiotic college professor I had years ago at Strayer University (yes, avoid this college. It is a waste of time and money). The CEO of Dow Chemical borrowed a page straight out of my economic philosophy and is proving that energy based inflation is a reality, not some idea that deserves a B on my term paper. Dow is going to raise their prices immediately by up to 20%

Dow is just the start too. Energy based inflation starts here. Energy prices increase, putting pressure on businesses to either cut profits or slow down. Traditional economist, aka most college professors, will tell you that energy prices will come back down and everyone will be happy. However, in the real world this doesn’t and didn’t happen over the last 10 years. The result is that every company in America (except big energy, and miraculously Walmart) is being squeezed to the brink of no ability to make a profit or even be productive at any level.

There is a solution. It isn’t cheap, but it wouldn’t cost any more than the failed tax rebate of 2008. This solution would provide a long-term solution to the energy crisis in America and heavily stimulate the US economy while building the infrastructure needed.

Where have all those “tax rebates” gone? Hats off to anyone who spends it on anything other than energy.

My Interview with George Bush About His Environmental Plan

On Earth Day, I was able to get a brief moment with George Bush to Interview him about his new environmental plan. I’ll be airing it on my Radio Show tomorrow on BlogTalkRadio.com. Of course, the show is one hour long and the interview was only about 2 1/2 minutes, so I need to make sure that I have something else on the show. But I really do have an Interview with George Bush about his environmental plan that you don’t want to miss.

Dean and I will be talking with womentrepreneurs who started their successful businesses in each of these fields this Saturday morning!

Dean and Jared are very excited about the three guests on this week’s Dean and Jared Words Cause Radio Show here on BlogTalkRadio.com. We have three incredible women who have taken their passion and flipped it on it’s side to generate great business opportunities, not just for them but for hundreds of people!

We all remember Yankee Doodle Dandy, but what’s the story behind Yankee Doodle Dandy? And why is he on a Harley?!?

Writer and Producer of a 17-minute promotional documentary on Yankee Doodle Dandy, Suzy Goodman-Pollack, joins Dean and Jared on this Saturday’s Show! More than just a character promoting genius, Suzy is an incredibly successful womentrepreneur. She runs several businesses, including Creative Balloons Mfg. Inc., a family owned and operated business-to-business company that manufactures balloons and accessories that are sold worldwide! She has literally created opportunity out of thin air!

Then, we’ll be chatting with co-founder of of Internet darling PassPack: Tara Kelly. Learn how Tara took an art school education and turned it into a vision to survivie the brutal startup landscape. Handling all the social aspects of the business, from sales to marketing to PR, she’s one of the womentrepreneurs of Web 2.0!

PassPack is an online password manager giving users secure access to their personal web account from any Internet connection, while also encouraging better password habits. It makes it easier for you to safely forget your passwords! It’s a web application that stores your passwords so that no one can read them but you – not even PassPack. How do they do it? You’ll have to listen live to hear.

Tara will also be our second international guest in as many weeks! Last week’s womentrepreneur show featured the founder of Soul at Work in Amsterdam, Marianne Korten. Tara has been in Rome for the last 10 years. We’ll be sure to ask her if they missed the Pope last week.

But WAIT!!! There’s more!

We’ll also be chatting with the founder of Dancehelp.com, Christine Schambera. Dancehelp.com, a free online dance publication that offers original, unique articles on everything dance. Articles range from nutrition, performance and technique, to stage lighting, chorography and dance history. Dancehelp also offers employment and audition listings, chat forums, dance photos and videos, product reviews, press releases, dance dictionaries, biographies, as well as dance event information and original dance reviews on dance events in Southern California.

Albert Einstein once stated, “Dancers are the athletes of God”. Dean and Jared are excited about having Christine on the show. We’re hoping that Dean ends up with some dance lessons out of this show!

Be sure to catch us LIVE this Saturday, April 26, 2008 @ 10AM Pacific. Of course, if you ever missed a show, you can always subscribe via iTunes or your favorite feed reader. Check out WordsCause.com for more details!

The Women of Words Cause

I know, the pervs were probably expecting some pictures of scantily clad women. For that, you should go here. For the rest of you, Dean and I had four incredibly amazing women on the Dean and Jared Words Cause Radio Show yesterday.

Laura and Lori have teamed up to provide amazing technological advancements in the health care industry.

Marianne quit a cushy job of 16 years to start her own business.

Rebekah is a mother of three boys, a wife of 17 years to a veteran, and the founder of more than half a dozen resources for health information.

How do they all do it? Click here to read a little bit more information about Laura, Lori, Marianne, and Rebekah.

What inspired them to go beyond their comfort zones? Listen to the Dean and Jared Words Cause Radio Show to find out!