Utilitarian Value

in #hive-16792228 days ago

The title is just another way of saying something that has utility or doesn't have utility, I came across it recently on X/Twitter. For example, there's no utilitarian value in most memecoins.

The context it was mentioned in was obviously with regards to cryptocurrencies but I think it could be extended to the digital space in general.

I think value is more nuanced in the digital space than in the real world. Given that the former is more fluid and dynamic, it makes sense that value in that space also possess similar characteristics.

Unlike in physical reality, utilitarian value isn't necessarily the first or most important aspect when it comes to engagement in digital reality.

For the most part, that spot is given to attention, as in, how well a project can capture or retain attention towards their product/service.

Here, engagement refers to how users interact with digital content or services, not just their utility but their capacity to engage users on an emotional or entertainment level.


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Intangible Metrics

The old adage of "build it and they will come" seems less relevant or applicable now. I think part of the reason is modern humans are becoming less logical and much more emotional now, the balance has been tipped towards emotional appeal and unfortunately, immediate gratification has become one of its effects.

Especially in digital space, the value mostly lies in the emotional connection or the sense of community a product/service fosters.

Social media platforms are probably a good example, in that they thrive not on their utility but on how they make users feel connected, entertained, or part of a community. Perhaps, one could also argue that how they make users feel is actually their utility.

So the shift is something like; first, immediate emotional response. Then, long-term utility.

Arguably, attention has become a currency in itself. Projects that can effectively capture and retain attention, even if they lack substantial utilitarian value, can still succeed, especially in the short to mid term, outperforming seemingly solid projects with substantial utilitarian value.

At first, this phenomenon didn't sound right to me, I thought something was intrinsically wrong with the digital economy but who am I to resist against the evident proliferation of viral content, meme culture, and the success of platforms like TikTok, where the primary value is in the entertainment and the community interaction rather than in providing a tangible utility?

With the rise of VR, AR, and other immersive technologies, I suspect that experience may become the main utilitarian value that the digital world has to offer, which in many ways will be more compelling than physical reality in certain contexts.


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Correct Course

It's safe to say that traditional notions of value, such as straightforward utility or where utility was measured by efficiency or practicality will soon be a relic of the past.

For creators/developers, this means that understanding and designing for emotional engagement is as crucial as, if not more than, the technical functionality of their product.

Adapt to the age where value is multifaceted, capturing attention and community are the gold standard and new currency, respectively.


Thanks for reading!! Share your thoughts below on the comments.

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I consider meme coins the penny stocks of the stock market. They are largely useless and people just gamble the shit out of them without expectation that they are going anywhere fast.

I am going to start shifting more of my money into bitcoin and other assets than crap places like stocks. I don’t love it either way but at least with crypto, we get better options and it’s not as confusing and complicated as the dozens of pages of fine print for stocks.

From where we are now - it’s hard to think of what things will be like with VR, AR and things like that when they finally get mainstream adoption.

Right, the recommended is putting around 10% of one's wealth on memecoins for the sake of keeping up with the trends and perhaps, getting lucky with unexpectedly high returns along the way.

I've not been able to participate in the stock market, the onboarding is a bit of a hassle from this part of the world but I think in many ways, the crypto market is like an evolved version of the stock market, global and decentralized making it much easier for anyone to participate.

Going all in on crypto is a work in progress for me, I think this may accelerate in the near future if the traditional financial system keeps getting more inefficient and redundant.

Thanks for stopping by :)

You are right. The scale has been tipped and many creators are vying for emotional gratification more than actual utility value.

Yes, it isn't bad to make it the main tool in your arsenal but it'll probably be a tough job to retain that gratification in the long term, especially knowing that humans are very fickle in that regard.

Thanks for stopping by :)

You're welcome