Is There An Increasing Marginal Utility Of Data?

Interesting concept – Union Square Ventures proposes that while material goods have decreasing marginal utility, the value of data increases for each new byte added.

It’s a stretch that presumes the human user has potentially infinite interests. And to capitalize indefinitely on the data store, the human user would also need infinite desires, wouldn’t they? Neither is the case (at least after adulthood), and I suspect that beyond a point (closer to the y-axis that most think) the data is nothing but noise. While the marginal cost of the data storage is immeasurably close to zero, the computational costs (including CPU cycles and smart people creating new algorithms) to extract revenue from each additional bit should continue to rise.

And socialization leverages existing data stores, but only to a point – afterwards there are likely diminishing returns as well.

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