Data is wealth, privacy is also wealth.
Investors should care about personal privacy because it has become a trend that has had impact on the market.
It is certain that some of the world’s most successful, most profitable companies are booming due to significant lack of privacy protection. Like Google (now Alphabet) and Facebook companies, use the large number of consumer data they receive to push specific advertisements to pick up the user’s purchase completely, but really “very wants”. These are benefited from the raw data provided by consumers to give up privacy.
For a while, there seems to have few consumers who will mind privacy protection, the market rewards these mining privacy companies. Facebook was listed on Nasdaq in 2012 with $ 60 billion, and then raised this number to more than $ 1 trillion in August last year. Google also has similar development trajectories, starting from the $ 23 billion market value in 2004, near the end of last year, nearly 2 trillion in peaks. They all do this by monetizing consumer data.
“Economist” said in 2017, data is the most valuable resources in the world, which makes people think of the slogan of data scientists, ie “data is new oilfield.” However, now, consumers have begun to realize that their information is extracted. As a result, these data are increasingly difficult to collect and use.
Paradigm is turning to more privacy.
My colleague (also the favorite Coindesk writer) David Z. Morris wrote a wonderful article on this transformation last month for Coindesk’s privacy week. Here, he gave us this offer.
“Your phone is not talking to you,” Tsukuyama said. “But the truly terrible thing is that they can’t make persons. From search history, you can infer this day you and who go out to play, your age, etc.
Now talk about Apple, the company strongly promotes improved user privacy last year. In short, Apple makes the app more difficult to track data because users can choose to disagree with tracking behavior. As a Android user who usually does not share data with the application, I think this is not very dense. Until Facebook / Meta founder and CEO Markzakberg said at the company’s nearest financial newspaper conference:
With Apple’s IOS changes and European new regulations, an obvious trend is that there is less and less data available to put personalized advertising … Therefore, we are rebuilding a large number of advertising infrastructure so that we can continue to develop and provide High quality personalized advertisement. “
That is on February 2. The next day, Meta’s stock fell by 26%. Apple’s promotion of privacy is well received by its users, so that one of the world’s most valuable companies have lost billions of dollars in market value.
Apple knows its user wants privacy. Different from Apple’s founder Steve Jobs, current CEO Tim Cook is a business student graduate, and it is well versed in market research (Jobs does not rely on market investigation because he believes that customers tell them before the apple Know what they want). As the comments on Zakberg revealed, the privacy pendulum is from “We will share everything” turning “We want to find our privacy”.
So what is the relationship with encryption?
Privacy is what I have recently studied. I am surprised to encrypting currency (including bitcoin) lack of privacy, although privacy is the basic requirement of Bitcoin as a point-to-point digital cash
Whether it is Canada (the new protestine epidemic vaccine forced protesters are frozen in the bank account), or the accused BitFinex laundunders were arrested (even if they tried to cover their traces), and even possible to Tanfang Dao hackers (Even if he uses the Bitcoin mixer to confuse his trace), encrypted currency is not good to privacy, especially when converting encrypted currency into cash for “real world”.
From an investor’s point of view, you can make a meaningful conversation on the privacy technology, as you have enough demand, you can make money. We have seen this interest in the reality, the 2019 privacy and network security company’s equity financing has reached nearly 10 billion US dollars.