The day Twitter made sense for me was the day Twitter Search became available. It's easy to see that there is gold in mining the thought stream.aka activity stream. Think about it as having the ability to be able to track the real-time pulse of the world, as first witnessed via the Obama Twitter account and the Mumbai attacks. We're talking about GOD like powers now.
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There is definitely reason for Google to be interested in Twitter, but can Google build a better version of Twitter Search? I am convinced that Google can, but it probably take them a while to build it; and most likely won't be as elegant.
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