Did you ever wonder how a website that does nothing but allow you to display your life to all your friends and family and is free to use, could be worth around $11 Billion??  Facebook is. This valuation comes from the power of connecting…not just people, but things. When connectivity is increased, value goes up exponentially.

This could best be understood with the explanation of the “fax effect”. The first fax machine that was made cost exorbitant amounts of money during research and development, and was worth relatively nothing.