Surveillance Capitalism, Facebook coin, KYC, crypto

[Cnut237]

Tin foil hats on, people, I'm going in...

Big news recently has been Facebook's announcement that it will be launching its own cryptocurrency, 'GlobalCoin'. I think this has implications for the direction of travel of crypto as a whole.

Facebook, along with other major internet companies such as Google, offers its services 'for free'. Obviously 'free' is not really free, as these companies harvest all of the personal data that you provide and use increasingly sophisticated behavioural analytics programs to predict your future behaviour, and sell this on for big profit.

So the Facebook coin - they can harvest data on your personality, age, gender, politics and preferences, but the ultimate aim is to acquire everything, all data, including the most valuable one, which is what you buy and when (and under what circumstances) you buy it. This is surely the real purpose of Facebook's move into crypto. All of your purchase activity with this Facebook coin will be tracked and incorporated into the 'digital you' that Facebook sell on.

Is the rest of crypto heading the same way? I know there are privacy coins, but the overall trend is towards KYC - including on exchanges, and this will doubtless increase as mainstream adoption draws closer and governments become more hands-on in devising legislation. And then couple this with the privacy trade-offs that we are likely to concede in order to make use of the convenience of IoT and connected devices.

Are we heading inevitably into a future where crypto is used as a means for big companies to harvest your data for profit?

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[CryptoBry]

Are we heading inevitably into a future where crypto is used as a means for big companies to harvest your data for profit?

Data is power and anybody holding that data can easily monetized those data. This is the big lesson I learned when I supported many data-related ICO projects in 2017...sadly many of those project went kaput themselves. Data can be money in the hands of a good merchant and it can also mean power if wield rightly. This is so important to Facebook, Google and other big names in this ever-expanding online industry as what they are pushing are based on data. And of course, data buyers are all over the market especially big businesses and popular merchants (including the many small fishes or players, of course). Are we then entering the time when even cryptocurrency is being utilized harvesting data for profit? Yes, that can be possible but I am still crossing my fingers with the Facebook's GlobalCoin and see what its final infrastructure will be. Let's judge the book when it is already available in bookstore.

[Gozie51]

Is the rest of crypto heading the same way? I know there are privacy coins, but the overall trend is towards KYC - including on exchanges, and this will doubtless increase as mainstream adoption draws closer and governments become more hands-on in devising legislation.

KYC is the reason that cryptocurrency won't have that kind of free hand it was meant for. Then government being incorporated in for legislation won't really make headway. This is one issue that crypto will have to face in the future when governments start coming into the regulation.

[freedomgo]

Are we heading inevitably into a future where crypto is used as a means for big companies to harvest your data for profit?

We should not allow that, not because facebook is making their own crypto they will be able to beat the bitcoin and other altcoins.
That always depends on us, if that is their purpose and we support it we should blame but ourselves.
In a decentralized space, we are not controlled, we have freedom here, so let's unite and use our freedom to raise the coins that would be beneficial for the majority of people.

[Beerwizzard]

There is nothing bad in KYC. This kind of data is absolutely worthless. You may easily buy someone else's document scans just for $1 in dark web. KYC is made to verify the user that is making financial operations and not trying to gather his data.

KYC is the reason that cryptocurrency won't have that kind of free hand it was meant for. Then government being incorporated in for legislation won't really make headway. This is one issue that crypto will have to face in the future when governments start coming into the regulation.

You can still make P2P transactions that would be annonymous but when it comes to using some 3rd party services then you should also follow their rules.
And btw this governmental regulation won't be seen for normal users.

[The Sceptical Chymist]

I know there are privacy coins, but the overall trend is towards KYC - including on exchanges, and this will doubtless increase as mainstream adoption draws closer and governments become more hands-on in devising legislation.

I don't see any tinfoil hat on you, my man.  As to the above quote, I agree and currently I'm not using any exchange that requires KYC (I have used Coinbase and Circle in the past).  I'm not so much concerned about the data an exchange can collect from me, but I'd like to keep my crypto dealings a wee bit private if possible--but FB and Google?  Oh hell no.  I don't use FB and I stopped using google as a search engine, though I can't say I've stopped using all of their services.

Those two companies are like big brother from George Orwell's 1984, and both of them freak me out.  I don't know how successful FB's crypto will be, but it might spark some interest in real cryptocurrencies like bitcoin.  But we'll see.  I don't know much about what they're planning and how their coin is going to be implemented--and I'm not very interested in the details either.  Fuck Facebook, that's my general opinion about them. 

KYC is the reason that cryptocurrency won't have that kind of free hand it was meant for. Then government being incorporated in for legislation won't really make headway. This is one issue that crypto will have to face in the future when governments start coming into the regulation.

I don't know what you meant by the bolded sentence above, but I think governments are going to start regulating crypto.  They already have, in fact, in the form of those KYC requirements and so forth.  They won't be able to destroy it, but governments have more power over it than most people realize.  They have a bazooka in their pocket that they just haven't fired yet.

[sheenshane]

Is the rest of crypto heading the same way? I know there are privacy coins, but the overall trend is towards KYC - including on exchanges, and this will doubtless increase as mainstream adoption draws closer and governments become more hands-on in devising legislation.

KYC is the reason that cryptocurrency won't have that kind of free hand it was meant for. Then government being incorporated in for legislation won't really make headway. This is one issue that crypto will have to face in the future when governments start coming into the regulation.

There's nothing wrong with regulations because I saw the majority of people who hate and is really bittered in Facebook and successful companies as a sign of being a crab mentality human being. I don't really understand the reason why you people hates Facebook and so on. We even know that Windows Operating System could get all your information quickly and easily compared to the browsers, social media OP's mentioned.

You know what? I guess the best way for you to do is to stop using the internet if you are really against it.

People like you hide a lot of things and that is the reason why you are afraid of these.

Honestly, Facebook is doing their best to help their users. And earn from the advertisements and market. However, it doesn't mean that they are selling it for a big profit. It's just that they are doing their best to help us with our daily living.

[Cnut237]

I don't use FB and I stopped using google as a search engine, though I can't say I've stopped using all of their services.

Those two companies are like big brother from George Orwell's 1984, and both of them freak me out. 

Yes, I agree 100%. It is becoming increasingly difficult to avoid them. Every company can see the huge income that FB and Google can generate on the back of the personal information that we hand over freely, and unsurprisingly they all want in. Particularly if you have a smart phone - it's not just the Android operating system, it seems like every app wants to grab your location data, access your photos, contacts etc. And if you delve into the permissions that most websites now want, it's like entering an infinite labyrinth, they sell your data on to a huge number of companies, who in turn sell it on further. It's an onslaught.

This is the thing that concerns me about the FB coin. It will absolutely be used to track purchases and potential purchases and whatever else it can track; this is how FB makes its money. It's essentially a behavioural futures market.

So given that all these companies are chasing after our personal information, and that surveillance possibilities are ever-increasing with the introduction of new tech like facial recognition becoming more widespread, this comes back to crypto again in the form of IoT devices managed by smart contracts. It's a small step from KYC on exchanges to full surveillance everywhere, and the worst thing is that there's money in it to act as an incentive.

There's some good, insightful literature on this stuff. I'd recommend 'The Age of Surveillance Capitalism' by Shoshana Zuboff. Probably best not to get it from Amazon though

[dothebeats]

In one point perhaps crypto would experience and head that way, though I don't think that it will be completely going that way. Only those who wish to trade their crypto to fiat are at risk and are offering being data mined by companies, and for the rest of the community who doesn't use centralized exchanges on their dealings, I guess they are safe from such surveillance--but then again we know at some point they are going to have to exchange that crypto to some fiat.

Perhaps it's a compromise we must accept in order to see bitcoin and crypto grow and have some of that acceptance from the masses.

[davis196]

Unfortunately more crypto adoption means more transparency and the coins that focus on being anonymous,like monero will be restricted and penalized even further.
By the way,globalcoin is an awful name.FBcoin is way better.

[Genemind]

KYC is something that we shouldn't fear. We all know how it could help the security of a certain coin and every transaction being performed using it. The risk is, Facebook contains all our information so it will be easy for their coin to track transactions without requiring KYC. They could also track our holdings if ever we'll purchase their coins. It's hard to entrust everything in a coin which could access our private information. They would surely take control of this.

[cryptjh]

KYC is something that we shouldn't fear. We all know how it could help the security of a certain coin and every transaction being performed using it. The risk is, Facebook contains all our information so it will be easy for their coin to track transactions without requiring KYC. They could also track our holdings if ever we'll purchase their coins. It's hard to entrust everything in a coin which could access our private information. They would surely take control of this.

I think that Facebook will be forced to do some kind of KYC of the users of their GlobalCoin, to be sure that the currency can be legal around the world.
I'm more interested in how they will secure the users of their coin, so people who get their Facebook account hacked, don't end up losing there crypto also.

[hatshepsut93]

Facebook has already been caught trying to obtain customers financial data from banks and payment companies - though they have said that they declined the Facebook's offer, which might or might not be true, it still shows that you're right - Facebook is interested in obtaining financial data, because that their business model - creating target ads and selling them, and creating their own coins is one way of achieving it.

[Ailmand]

Facebook has already been caught trying to obtain customers financial data from banks and payment companies - though they have said that they declined the Facebook's offer, which might or might not be true, it still shows that you're right - Facebook is interested in obtaining financial data, because that their business model - creating target ads and selling them, and creating their own coins is one way of achieving it.

Well, that is alarming. The reason why cryptocurrency is loved by many is because of anonymity that it brings to it's user. Divulging personal information is really risky especially if financial information is involved. Well, let's all just wait what would be the real aim of facebook when they finally launch their own crypto.

[tweetbit]

Are we so sensitive enough of our privacy that we forget we’re living in a world of fraud. Is Facebook privacy and data issue is really alarming or just part of something that does happen locally within our country without our knowledge? Or we’re been dragged by some PR machines into something they’re personal intention is behind money.

I don’t agree with how Facebook used or unintentionally been used in something that is beyond we intended our data to be used. CIA is tracking us for decades. That’s an open secret, but we don’t condemn it as we do in this social media platform.

Remember:
 Facebook is a powerful tool and a government that controls it will have the advantage. The pressure is way beyond we can only imagine.

[uneng]

Inevitably crypto space tendency is to become even more centralized and restrict. Kyc requirement lets it very clear. Soon exchanges that don't adopt this procediment will be forbidden of operating their businesses by governments that are uniting themselves to adopt similar regulations toward crypto currency.
You can verify it by looking India government actions: they were visiting some countries like Japan and Uk to learn about their regulations and have some ideas about how India crypto regulations must be. There is an uniform movement coming from different countries to threat crypto currency users privacy.

[TimeTeller]

Facebook has already been caught trying to obtain customers financial data from banks and payment companies - though they have said that they declined the Facebook's offer, which might or might not be true, it still shows that you're right - Facebook is interested in obtaining financial data, because that their business model - creating target ads and selling them, and creating their own coins is one way of achieving it.

It is up to the user how far this social media can extract info from him.
If you are not in any way favor of their business, you can always delete your account from them.
It is up to you actually, how they can track your behavior. You will be the one feeding your information.
Creating their own coin will create more crypto adoption. So I have nothing against with them.
More crypto adoption means the btc price might further increase its value.

[BitBustah]

Data is one of the most valuable things and most people just hand it over for nothing and do not care.  I'm really scared about how powerful this Facebook could become among the masses.  Zuckerberg has already shown that he is a psycho that is bent on world dominance.  I'm guessing their coin won't be mineable at all and will be completely centralized.

[dunfida]

Are we heading inevitably into a future where crypto is used as a means for big companies to harvest your data for profit?

Im pretty sure that they already have done it but it isnt disclosed yet.We have seen on past issues with Facebook when it comes to information leak.We
dont even know if those are just simply an alibi or total shows just to deceive people.I dont see this Globalcoin do any have significant similarities with a pure crypto currency
yet this would be just a centralized coin would be used up for FB's services and so forth but surveilance and reversible transactions might be possible.

[Adriano2010]

Well i don't like doing kyc for all exchanges at least not there where i not deposit money via card or bank transfer, i also not like surveillance and also the way the work try to go. I wish crypto be decentralized.