▾Why is data more valuable than gold? Every click and like is a trace that companies like Google or Meta mine and profit from. Learn how the internet economy uses your data for ads, personalization, and even manipulation.
With the rise of technology and artificial intelligence, data is more valuable than gold. Every click, like, share, or search on the internet creates a trace that is more valuable to tech companies than any precious metal. Why? Because data is not just information – it is the key to your behavior, preferences, and even future decisions. Discover with us how the internet economy works and why your data is so valuable.
data: the new currency of the digital age
Every move you make on the internet is like a coin you give to companies. When you browse new sneakers on an e-shop, like a photo on social media, or enter what bothers you into the search engine, you generate data. This data is not just random digits – it is pieces of information about what you like, what you buy, where you live, who you talk to, and even what annoys you.
For tech companies, like Google, Meta, or Amazon, this data is like raw material that they extract, process, sell, and, most importantly, make huge profits from. It is estimated that the global data market reached a value of over $220 billion in 2024 and is expected to grow to over $1 trillion by 2030.
why is data so valuable?
Unlike gold, which is limited and is being mined physically, data is almost infinite and cheap to collect. Each of us produces an average of 1.7 MB of data per second.
Companies collect, analyze, and use this data for several purposes:
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targeted advertising – When you see an ad for a product you just viewed, it's no coincidence. Algorithms track your behavior and show ads accordingly that you are more likely to click on.
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personalized services – Netflix knows what movies you like, Spotify knows your music taste, and Amazon suggests products you're most likely to buy. All thanks to analyzing your data.
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behavior prediction – Data helps companies predict what you'll do next. For example, banks can estimate whether you're a suitable candidate for a loan based on your purchasing habits.
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product development – Companies use data to improve their products or create new ones that exactly meet user needs.
how do companies collect your data?
Data collection is silent, and you often don't even notice it happening.
The most common ways of obtaining data include:
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Cookies and tracking pixels – When you visit a website, small files called cookies track what you do. Tracking pixels (invisible images on the site) then send information about your behavior back to companies.
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Social networks – Every like, comment, or share is recorded. Even how long you look at a post can be valuable information.
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Mobile apps – Apps have access to your GPS, contacts, photos, or microphone. Some apps, for example, track where you are to offer local ads.
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Search engines and smart assistants – Every search on Google or query to Alexa is recorded and analyzed.
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Internet of Things (IoT) – Smartwatches, thermostats, or even refrigerators collect data about your lifestyle.
what do companies do with your data?
Once companies acquire your data, the real alchemy begins. Using artificial intelligence and complex algorithms, data is processed and sorted. The result is user profiles that contain hundreds to thousands of data points – from your age and interests to whether you like to shop late at night.
These profiles are then sold to advertisers or used internally by companies to optimize services. For example, Meta (owner of Facebook and Instagram) earns over 90% of its revenue from advertising based on user data. Google generates most of its revenue through targeted ads in search and on YouTube.
why is data collection a problem?
While personalized ads can be useful, data collection also has its dark side.
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Loss of privacy – Your data can reveal very personal information. For example, health status, political opinions, or financial situation.
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Manipulation – Companies can use data to influence your decisions. For example, during elections or when making purchases.
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Data breaches – Hackers are constantly attacking company databases. In 2023, over 2.6 billion personal data pieces were stolen worldwide.
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Power imbalance – While companies have enormous amounts of information about you, you often know almost nothing about them.
what can you do to protect your data?
Luckily, you're not completely powerless. Even as a layman, you can take steps to limit how much data companies collect about you.
Use ad and cookie blockers
Tools like uBlock Origin or Privacy Badger are great ways to limit tracking on the internet. These blockers stop cookies and tracking pixels that collect information about your behavior on websites. Just install them as browser extensions, and you'll immediately gain more control over what companies know about you. Plus, they can speed up page loading as they block annoying ads.
check privacy settings
Most social networks and apps have privacy settings that let you limit what information you share. Look into the settings of your account on platforms like Facebook, Instagram, or TikTok and disable app access to your microphone, camera, or GPS. This will reduce the amount of data companies collect and protect your personal information from misuse.
use anonymous browsers
Browsers like Tor or Brave are designed to maximize your privacy. Tor hides your IP address and routes your connection through several servers, making tracking difficult. Brave automatically blocks ads and trackers and offers faster browsing. Using these browsers can significantly reduce the footprint you leave on the internet.
read terms of use
We know reading terms of use can be boring and often seem written to be unreadable. Still, it's useful to at least skim through what companies do with your data. Look for information on what data they collect, with whom they share it, and how they use it. If something doesn't suit you, consider whether you really need the service or look for alternatives with better terms.
use encrypted services
Apps like Signal or ProtonMail use end-to-end encryption, meaning your messages and emails are readable only by you and the recipient. Unlike standard services like WhatsApp or Gmail, where companies can theoretically access your data, encrypted services provide a higher level of security.
the future of data: what's ahead?
The internet economy is constantly evolving, as are the ways companies collect and use data. Artificial intelligence is becoming even more sophisticated, which means companies will be able to predict your behavior with even greater accuracy.
On the other hand, awareness of privacy protection is increasing, and regulations like GDPR in Europe or CCPA in California are forcing companies to be more transparent.
Nonetheless, it's important to realize that data is and will be the fuel of the digital world. Even though gold may seem valuable because it's tangible, data has value because it's invisible and omnipresent. Each of us is part of this data economy – whether we like it or not.
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