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Very interesting take. Great summary on social capital and how it drives FB and inherently, the new apps that are coming out.

I fail to see a new or original insight here.

Who has ever looked at Facebook and its social networking peers and wanna-be's any other way?

@anilp: I think what he's doing is characterizing facebook as a site that builds social capital among people who are already friends as opposed to a site that simply connects new people and/or keeps people connected. In other words facebook is driven now (and this is reflected by how many of the popular apps are not really tools, but toys) by the fact that people want to look cool with/to their friends.

My personal take on this is that facebook has already transcended that phase of being a tool to connect to people, and has become such a commonplace entity that people are now trying to have fun with it. ::shrug::

Bang on Alex, bang on.

Nice blog too.

Alex - two things:

1. My name is spelled Jeremy Liew (not Jeremey) if you don't mind correcting it in your footnote [3]
2. Another good real world example of the performance aspect of "making your friends look cool" is sending flowers. If you take a girl flowers personally, only she knows. If you have the florist deliver them to her dorm then everyone in the dorm knows and she looks very cool.

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