Facebook crypto will ‘generate billions’ for social media titan
When Bitcoin was launched in 2009, it was heralded as the digital currency that would make banks and other traditional intermediaries obsolete. But lately, it has been established behemoths that have been announcing their own coins. Earlier this year, JPMorgan announced its JPM Coin for wholesale purposes, and this week brought more news on Facebook’s project to launch its own GlobalCoin. What to make of this? It is important to clear up two misunderstandings. Firstly, coining a nice name for a platform currency sounds like clever marketing, which is well understood in some corporate boardrooms. Establish vague associations with cryptocurrency, and headlines are guaranteed. But, strictly speaking, cryptocurrencies are decentralised. This means that the money supply and the infrastructure are
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·Coin RivetFacebook’s rumoured cryptocurrency will generate billions in revenue for the firm, according to a Barclays analyst.
CNBC reports Barclays analyst Ross Sandler yesterday sent a note to clients outlining how Facebook introducing digital currency across Facebook, WhatsApp, and Instagram could land Mark Zuckerberg’s firm $3 billion to $19 billion by 2021.
He wrote: “Merely establishing this revenue stream starts to change the story for Facebook shares in our view.”
In 2010, Facebook introduced a virtual currency called ‘Facebook Credits’ which failed to catch on, but the analyst says technology has moved on significantly.
Sandler added: “Based on our checks, the first version of Facebook Coin may be a single purpose coin for micro-payments and domestic P2P money transfer (in-country), very similar to the original credits from 2010 and Venmo today.”
The New York Times recently reported that Facebook is talking to cryptocurrency exchanges about the possibility of listing its own cryptocurrency.
‘Facebook will fail’
Last week, the head of a securities exchange slammed Facebook’s rumoured launch of a cryptocurrency as doomed to failure.
Mike Rymanov, CEO of London-based DSX, says he believes Mark Zuckerberg cannot replicate the success of Bitcoin because he cannot replicate the unique structure of the original crypto.
“Contrary to popular opinion, it’s Facebook that will fail where Bitcoin has prevailed,” said the entrepreneur.
“Bitcoin is doing exactly what it’s supposed to be doing: creating a grassroots movement driven by individuals.”
In February, Facebook CEO Mark Zuckerberg said he is eyeing a blockchain-based log-in system for the social media platform, claiming in a Facebook Live video that it would be a more secure option.
The 34-year-old billionaire said that blockchain technology could be utilised as a way for users to access, store, and manage private data.
“Basically, you take your information, you store it on some decentralised system, and you have the choice of whether to log in to different places and you’re not going through an intermediary,” he said.
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