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technology

Hamas gets a helping hand from social media

It is not possible to write cheerfully about new innovations when the world is on fire. Especially not when the world's most widespread innovation of this century, social media, is being used by terrorists and imbeciles to spread hatred and prevent peace.

What is the most important story on Meta's news page?

Historian Yuval Noah Harari aptly summed up the misery on CNN: the goal of Hamas and related clubs is simple, namely, "to assasinate any chance of peace." Spreading their atrocities through social media is a deliberate tactic in doing so. The hatred and disgust evoked by the images will eradicate any sense of compassion, let alone willingness to compromise. Exactly the intention of Hamas.

It proved virtually impossible on Facebook, Instagram, TikTok, X and Youtube last week to avoid the topics of Israel and the Gaza Strip. This seems logical at first, were it not for the fact that I was continuously served messages from all sorts of people I do not follow at all. No matter what I clicked away and pushed away, the distasteful nonsense from Gaza experts, many of whom were self-proclaimed AI experts until last week and NFT insiders last year, kept flooding my timeline.

Facebook and TikTok respond only after warnings

It took until Friday for Western governments to issue warnings. The EU ordered Meta to do something about all the disinformation being poured out over the world via Facebook and Instagram. Zuckerberg, meanwhile, understands that you have to move then, just as someone running a red light always pretends to cross as fast as possible. TikTok received a similar warning, as did YouTube.

The statement Meta issued is so saltless and heartless that it must have been written by a bad AI application. But look especially at where Meta places that statement: small in the right-hand column. The most important place on a website, big in the middle with animated visual, is still dedicated to the boring chatbots that were already announced on Sept. 27.

Next time a Facebook livestream by Hamas terrorists wearing smart Ray Bans?

Zuckerberg was able to chat with Lex Fridman in a promotional podcast about his Metaverse efforts last month, but where was he last week when terrorists broadcast child murders over his networks? Sure, it's brave for a nerd to spar with professional cage fighters, but it takes real courage to go live on CNN to talk to Christiane Amanpour about your contribution to the spread of terrorist outrages.

Meta's news page pays more attention to the new Meta Smart Ray Bans, which allow live streaming from a camera in those glasses on Facebook and Instagram, than to what Meta will do against abuse by groups like Hamas.

If Zuckerberg doesn't intervene, the wait is on for a Hamas idiot (fighter is the wrong word for someone who kidnaps a girl at a music festival) with a fashionable 'Rebel Black Headliner Ray-Ban Meta' smart glass on his head committing mass murder; because it's easier to operate your Kalashnikov when you have your hands free while going live on Insta.

The business model of social media is free popular content

It's crude, but at its core, Hamas delivers what social media loves: lots of viewed free content. Meta's business model is to sell advertising through Facebook and Instagram to people who watch content for which Meta pays nothing. That's much more lucrative than all that cumbersome stuff from Disney or Netflix, who have to create expensive content.

At its core, Meta doesn't care what that content is, as long as they don't get hassled about it by advertisers. As Zuckerberg likes to say, "move fast and break things. The world has been able to see how that works out.

The problem is not new

Once a young Internet entrepreneur said:

"We are largely similar to the phone company. We only transmit information; we don't have a say about what is transmitted. We only select a little bit: if we passed on everything on the Internet, our computers would crash. And we also rejected a discussion group that did spread child pornography very clearly. But we could only tell that from the name of that group, because it would be impossible to read everything said in it."

That young Internet entrepreneur, that was me. And I said this in newspaper Trouw in November 1995, almost 30 years ago. I was 27 at the time and I sincerely believed that the operator of a network had no business meddling in the content that people transmitted over this network.

Not long after, several of our subscribers began distributing child pornography through newsgroups devoted to innocent topics such as bird watching or stamp collecting.

We had worked for years as communications science graduates to build an Internet provider that would provide Internet access to everyone in the Netherlands, allowing people to communicate and gain knowledge, but a certain group of subscribers decided to spread the worst imaginable misery through our network.

Filter freedom of speech

In all civilized countries there is a limit to freedom of speech somewhere. I didn't know then and I don't know now exactly where that line is, but we all know when it is crossed by miles.

We actively reported our own child pornography distributing subscribers to the vice police, which led to several criminal cases. It was the darkest period of my time as an entrepreneur and they were the worst things I have ever seen. I was deeply impressed by the commitment and professionalism the police showed in these cases. The detectives always looked immediately to see if the images were already known, so that hopefully there were no new victims. Fortunately, this was true in all cases.

With pain in our hearts, we closed access to many newsgroups, thus limiting both subscribers' access to information and their ability to disseminate information. The good people suffered from the bad people, because 99% of the messages could be classified as normal communications.

Therefore, I can well understand that Mark Zuckerberg and other entrepreneurs and executives who have worked hard to build their networks find it difficult to now have to limit and control what they have built. But global reach and influence comes with commensurate responsibility, to which Zuckerberg in particular seems blind.

No new glasses, but working filters

Meta, X, TikTok and YouTube should now not focus at all on developing technology that will make it even easier for everyone to distribute even more content, such as via an avatar in the Metaverse or with smart glasses with built-in cameras; the focus should be on regulating which users broadcast what content over their networks and who has access to viewing that content.

The same kind of algorithms that YouTube and Facebook use to see what content is going viral and promote it faster can also be used to estimate what content needs to be looked at more closely for objectionable substance. Good use of the lightning-fast developments in AI and text and image recognition should be able to limit spread of much misery.

Meta's market cap is over $800 billion and the company makes tens of billions in profits. That's more than enough budget to build functioning systems. The same is true for YouTube and TikTok, while the ailing X is surely able to get a loan from its owner Elon Musk.

Over the past week, children around the world have seen images on Instagram and TikTok that no one should ever see. Preventing that misery is what Zuckerberg, Musk and the other chiefs of social media should focus on.

Four years ago, Zuckerberg had a long conversation with Yuval Noah Harari. It would be good for them to talk again now. The value of democracy is at stake.If America (Meta, YouTube, X) has moral superiority over China (TikTok), now is the time to prove it.

Categories
crypto technology

The best tech investments of the last five years were not Apple or Bitcoin, but Tesla and Ethereum

At the twenty-fifth edition of this newsletter, I want to look across this dull news week at what has been the best-yielding investment in tech over the last five years. To my surprise, it was not Apple, Bitcoin or Nvidia, but Tesla. In the crypto world, Ethereum turned out to have risen twice as much as Bitcoin. Ok, one news fact did stand out this week: Tinder is introducing a $500-a-month subscription, for real enthusiasts.

If Tesla and Ethereum made a car together, it would look like this, according to Midjourney.

Tesla and Ethereum the big winners

Tesla rose as much as 1287% and Ethereum 611% over the last five years, against Nvidia 492%, Bitcoin 305% and Apple 210%. Meanwhile, the S&P 500, the classic benchmark, did 48%. War and inflation notwithstanding, saving has still proven far more expensive than index investing.

Tesla and Elon Musk I leave to Walter Isaacson, whose book on Musk is a huge hit. Rather, I look at Ethereum, precisely because the traditional media rarely, if ever, publish a decent analysis on this underrated platform.

But before we dive into the numbers and prices, it's important to review what Ethereum does and can do and how it differs from that blockchain brother from another mother, Bitcoin. For this description, I used ChatGPT and Gert-Jan Lasterie's standard work.

Ethereum is a public workshop

Imagine that the Internet is a big city. In that city you have a market for commerce, a library for information, a bank for money matters, and so on. Bitcoin is something like a special kind of gold; valuable and you can keep it, but otherwise you can't do much with it. The exchange rate varies greatly and so you won't be using it to pay for anything anytime soon.

Ethereum is something completely different, where a group of people got together at the initiative of Vitalik Buterin and said, "instead ofjust making a new kind of money or a different kind of gold, shall we put some kind of public workshop in the city where people can build all sorts of things?"

With Ethereum, you can create "smart contracts," which sounds a bit like magic contracts, which automatically execute themselves once certain conditions are met. So suppose you want to rent a house. Normally you would go to a real estate agent or housing association, show your ID, pay and sign paperwork.

Based on Ethereum, landlord and tenant can use a smart contract that says, "Whoever pays the digital key fee will automatically get the digital key to the house." That transaction takes place on the Internet, no middleman is needed, everything happens automatically based on the smart contract.

But it doesn't stop there. Ethereum is used to build so-called "decentralized applications," called dApps. These are programs that do not run on one central computer but are spread across many computers worldwide. This often makes them more secure and less susceptible to fraud or censorship.

The magic word is decentralized

There is also "DeFi" ("DieFai"), which stands for "Decentralized Finance. These are financial services such as loans or insurance that work on Ethereum through smart contracts, without the involvement of banks or other financial institutions. The 2021 NFT boom was also built on the Ethereum platform.

Unlike Bitcoin and Ripple, Ethereum is technically not a currency, but an open-source software platform for blockchain applications - with Ether (ETH) being the cryptocurrency used within the Ethereum network.

In short, Ethereum is special because it is much more than just a digital currency. It is a complete digital world where you can enter into all kinds of transactions and agreements without the need for anyone else.

It's like a new, smarter layer of the Internet. To join you only need ETH as a means of payment, similar to buying a festival coin when you go to festivals because that coin is accepted as the only means of payment.

Why is Ethereum risky from an investment standpoint?

So much for the utopian vision: a world computer with smart contracts. There is nothing wrong with that, and as an entrepreneur, I am a big fan of access to a development platform like Ethereum. I won't even rule out Ethereum's creators getting a Nobel Prize in economics one day.

But from an investment standpoint, let's look at a fundamental economic principle: scarcity - or in the case of Ethereum, the lack thereof. Every right-thinking person supports Ethereum's expansive vision. It wants to be the oil that drives the gears of Web3. But the oil supply is finite; Ethereum is not.

Bitcoin has its own counter-story. It is limited to twenty-one million Bitcoins, which means built-in scarcity. You don't have to be an economist to understand that scarcity drives demand, which in turn drives up the price.

But Ethereum is like a never-ending digital oil well. Great for powering the network and ensuring there is always enough, but not so great for the fundamental principle of supply and demand. If ETH becomes too abundant, its value may decline, causing the price per coin to fall. The infinite supply means that ETH becomes as common as tap water in developed countries: of course you need it, but you're not going to pay a premium for it.

Thus, the lack of a supply limit for Ethereum can be the Achilles heel for a stable developing price. Therefore, keep a sharp eye on it if you are considering investing in Ethereum after the following paragraphs, because the lack of a supply limit is not icing on the cake; it could be the whole cake, or even the whole pastry - in a country full of diabetics.

Spotlight 9: TSLA phenomenal, ETH rises twice as fast as Bitcoin

With 1287% increase in five years, Tesla deserves a spot in Spotlight 9.

The idea behind Spotlight 9, a name coined by ChatGPT for this column, was to briefly track weekly how the major tech investments were doing compared to the benchmark, the S&P 500. It remains simple: if an investment does not outperform the S&P 500 over the long term, why invest in it and not the S&P? Amazon is such a setback, up only 29% over the last five years versus +48% for the S&P 500.

Stock market sentiment is important because when it rains there, it trickles down throughout the tech world to the youngest startups. If there are no exits, no IPOs, that means less investment in larger tech companies that are not yet publicly traded and it affects the entire tech sector. Ultimately, it limits new innovations.

Meta out, Tesla in

Tesla was not in my Spotlight 9 list because I follow the five biggest tech companies weekly, ranked by market value. Those are Apple, Microsoft, Alphabet (Google), Microsoft and Meta (Facebook). Tesla falls just outside that, but it gets interesting: Meta is currently worth $769 billion and Tesla ... $767 billion.

Based on its performance over the last five years, I threw Meta out of Spotlight 9 and Tesla is in it as of today. Zuckerberg must be devastated and in Musk's house, Elon and the little x's are certainly running an algorithmically calculated polonaise. Let's hope Musk doesn't disappoint with Tesla or I'll have to make another picture.

No master forecasters

In addition to the five largest tech companies by market value, I also follow the two largest crypto currencies, Bitcoin and Ethereum. There is so little coverage of crypto in the traditional media, and I myself have so little interest in daily prices, that I had completely missed the fact that after all the highly exposed price declines of the last two years, Ethereum and Bitcoin have still proven to be very good investments for people who look a little further than a week, a month or a year.

There is hatred and envy in the crypto world between Bitcoin maximalists and altcoin lovers. That's something like a metalhead explaining to a rapper why his music is better. They are incomparable giants, with Bitcoin, as mentioned, being somewhat comparable to a popular, digital version of gold, while Ethereum is a widely used building block of Web3.

Both have some utility, but how that will be reflected in the price is a total guess. As far as I know, at least in September 2018, no one was predicting that Ethereum (+611%) would appreciate twice as much as Bitcoin (+305%).

Tinder's $500-a-month subscription plan

'Hate the game, don't hate the players' thought Tinder and introduced a $500 subscription. Per month.

I read this article and I could not read it without hearing a translation from Amsterdam-West in my head every five sentences. I translate those below back into language that will keep this email from ending up in your spam filter.

Let's start with this passage: "We know that there is a subset of highly engaged and active users who prioritize more effective and efficient ways to find connections," said Tinder Chief Product Officer Mark Van Ryswyk, "which is why we have been conducting extensive testing with this audience recently."

Translation: "We know that there is a horde of horny panters willing to pay unlimited money to us, as long as they have new victims be able to find loves."

Going forward: "The new plan announced Friday, called Tinder Select, was only offered to less than 1% of Tinder users who are among the app's most active, the company said. For nearly $6,000 a year, users will get access to new features, such as 'VIP' search, matching and conversation, that are not currently available with existing paid subscriptions."

Translation: "We don't know exactly how to do it legally yet, but we are going to give this group of addicts a chance to get their victims target audience, at the expense of then those customers of ours who only pay a few tens."

Another gem from the article: "Tinder parent company Match Group Inc. has experience with expensive subscriptions. In 2022, it bought The League, an invitation-only dating app aimed at "ambitious, career-oriented singles. The League has a VIP subscription that costs $1,000 a week. The company previously said the success of The League's expensive subscription caused Match Group to reconsider how it could appeal to "high-intention users on its other apps such as Tinder."

Conclusion: it is heartening that people today have the opportunity to find more potential partners and/or playmates than they used to find at the bus stop to the office or at the billiard bar. Butreh... "high intention users? We used to have very different designations for that kind of low-level guys and girls.

In conclusion

YouTuber and postdoctoral researcher Rob ter Horst of the CeMM Research Center for Molecular Medicine in Vienna tested the new Apple watches and made this fun and informative, science-based video about them. According to his resume, Ter Horst is "designer and research subject at the same time of an extensive N=1 study in the field of computational chemistry and bioinformatics.

Maybe nice if Ter Horst unleashed his scientific expertise and N=1 approach on that $500 subscription, went wild on Tinder for a month and published all the findings of his scientific research on YouTube?