Author and economist George Gilder predicts that cryptocurrency will soon disrupt Silicon Valley giants such as Google. In his new book, “Life After Google: The fall of big data and the rise of the blockchain economy,” Gilder writes that the “seeds of destruction” have already been sown that will mean the downfall of the data giant and others.
Google’s business model is to monetize the users of its free services, such as Google Search and Gmail. Google thus collects, analyzes and then sells data about its users to third parties. The users of Google are not customers, they are the product. While Google does not charge for searches on Google Search, Google provides the personal data of its users to advertisers. Gilder says that this is not a sustainable model for the internet. Gilder says that with the rise of bitcoin and other cryptocurrency, Google's "aggregate and advertise" business model will give way to the new blockchain economy, which according to a release from his publisher is “an entirely new internet frontier where users are masters of their own data, security is king, and a true market exists.”
An online review of the book asserted that the giants of Silicon Valley are facing a great unbundling,” which will disperse computer power and commerce and transform the economy and the Internet.
“If you want to be clued in to the unfolding future, then you have come to the right place. For decades, George Gilder has been the undisputed oracle of technology’s future. Are giant companies like Google, Amazon, and Facebook the unstoppable monopolistic juggernauts that they seem, or are they dysfunctional giants about to be toppled by tech-savvy, entrepreneurial college dropouts?” said Nick Tredennick of QuickSilver Technology.
A review in the Wall Street Journal noted, "[Gilder] suggests that while advertising prices might be correct, the free-service model cannot deliver sustainable growth... Mr. Gilder notes: 'The cryptocosm can mobilize computer power in volumes that dwarf even the data centers of the leviathans. In this case, the advances in computer science pioneered at Google serve to emancipate the world from Google's silos.' This may be a way off, but the investment implications come sooner than you think."
Peter Thiel, the founder of Paypal and an ally of President Donald Trump, said of Gilder’s new book: "Google's algorithms assume the world's future is nothing more than the next moment in a random process. George Gilder shows how deep this assumption goes, what motivates people to make it, and why it's wrong: the future depends on human action."“Google’s algorithms assume the world’s future is nothing more than the next moment in a random process. George Gilder shows how deep this assumption goes, what motivates people to make it, and why it’s wrong: the future depends on human action.”
According to the publisher, the crisis facing Silicon Valley “cannot be solved within the current computer and network architecture. The future lies with the ‘cryptocosm’—the new architecture of the blockchain and its derivatives. Enabling cryptocurrencies such as bitcoin and ether, NEO and Hashgraph, it will provide the Internet a secure global payments system, ending the aggregate-and-advertise Age of Google.”
Gilder is the author of nineteen books, including Wealth and Poverty, Life After Television, Knowledge and Power, The Scandal of Money, and Life After Google.