Is Facebook About to Collapse?

Is Facebook About to Collapse?

IS FACEBOOK ABOUT TO COLLAPSE? – Facebook, with nearly one billion registered users, is not exactly your average internet company. In fact it has the largest registered user base in the world, but could Facebook be facing the end of its shelf-life?

It was reported that in December 2012 Facebook that approximately 600,000 registered users, in the United Kingdom alone, failed to login to their accounts.

Facebook is of course refuting the statistics produced by SocialBakers and report that its user registrations are still growing, albeit at a slower rate.

Many experts are voicing their concerns about the future of Facebook due to its confusing Privacy Policies.  There are also continuing concerns, among Facebook’s users that the social network maybe not as sociable as it once was, due to the increasing number of abuse cases from internet trolls.

“We are very pleased with our growth and with the way people are engaged with Facebook – more than 50% of our active users log on to Facebook in any given day.” Facebook

Facebook, was once perceived as this open social network that was cool and fun to use, however many users now feel that Facebook’s Privacy Policies are allowing them to use personal data in order to further its revenue streams and therefore infringes upon their privacy.

Facebook is certainly no longer the cool start up that simply allowed its users to connect with one another.  From the time Facebook received first round funding from Peter Thiel, it was always going to turn into nothing more than a giant revenue making machine, the likes of Peter Thiel are simply not into throwing money away and therefore Facebook had to have a plan of how it could generate revenue from its user base.

Did we start to see the first signs that Facebook wouldn’t last when it launched onto the NASDAQ?  Considering its woeful performance on the stock market, it is not surprising that many investors felt that Facebook, and its major backers had a hand in falsifying information that provided the company with such a high market value per share at its IPO launch.

Since its IPO many analysts feel that Facebook does indeed have a useful shelf-life and as it continues to grow and changes it’s Privacy Policies for its own means of generating revenue, users will inevitably tire of the social network and an exodus will occur.  Maybe we are seeing the start of the avalanche?

I for one did not buy shares in Facebook, I simply could not fathom how its initial filings could produce such a high initial share price offering simply on the idea it had such a vast user group.  For me there was, at the time, no evidence to suggest Facebook could generate the type of revenue it was suggesting and considering the fall in share price my gut instincts were obviously right.

Almost all internet companies, with the few exceptions of those who run on a donation system, such as Wikipedia, require revenue to remain in operation and this is invariably generated via advertising.  However, internet users are becoming savvier and using a plethora of tools to block advertising which prevents revenue generation.  Yes, certainly, does have advertising, however it is always in the Sidebar to ensure that it does not interfere with the core reason a personal visit, and that is to acquire information from the articles it produces.

Recent remarks from analysts put Facebook’s shelf-life at about 8 years, after its IPO, which would mean that Facebook would expire on or around 2020.  Will this happen?  That really depends on Facebook and whether it can provide its users with a real reason to hang around and continue to use the social network.  Like all predictions there are always the doomsayers and the optimists.

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