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I think that it's both. With the rise of internet services being accessible to common person, we are more online and more aware of events taking place around us and int he world. But, social media also leads to more disconnect among people as not everyone lives the same life. This puts pressure on creating a digital identity that may or may not be the same as seen in real life. People stay more connected now with social media, following each other's life there. On the other hand, this also leads to them not actually talking to each other too.
It really depends on the perspective. One may use the rising web of internet to connect with people across towns, cities and even across countries and continents. But at the same time, with the increasing usage, it is an undeniable fact that real-life interactions are taking a hit. One's social skills might decrease due to constant online talks and communications. That being said, there's two sides to every coin. It's one's choice how they look approach this.