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While the bear market of Bitcoins followed its course until 2018 and early 2019, Facebook quietly entered the space of cryptocurrency and blockchain. Although the details of the company were kept under lock in the beginning, more and more data diverge on what the experts call "FBCoin", a crypto badet of the social media giant that could bring this innovation to billions of dollars.
While many technologists have embraced this innovation, praising the potential of a revolution in financial technology, what do experts think about the truly decentralized cryptocurrency of FBCoin? And more importantly, does it pose a threat to Bitcoin or projects of the same caliber?
NewsBTC was fortunate to get answers to these relevant questions in a series of recent interviews at Token2049, the largest industry conference in Hong Kong.
Related Reading: Crypto Industry Execs: This Beard Bitcoin Market Is The Best
Is FBCoin good for Bitcoin?
If you live under a proverbial rock, here's what we know from Facebook Coin. Sources told Bloomberg that this digital badet should first appeal to Whatsapp's Indian demographic group, particularly to meet the need for digital home payments, which have gained prominence in China. Cryptocurrency, if we can call it that, will be run according to a stablecoin-esque model, insofar as it is protected by badets external to the crypto industry. It's unclear whether the piece will be used in a blockchain, but Facebook's general manager, Mark Zuckerberg, has discussed distributed accounting technologies in several interviews.
Analysts predicted that FBCoin could generate monumental traction levels in just a few years. Ross Sandler of Barclays said in a note that Facebook's internal crypto-resource could generate $ 19 billion in additional revenue for the company by 2021 – in just two years. Sandler talked about the fact that every Google Play store user earns $ 6 per user for the internet giant, and that Facebook could experience similar financial success if FBCoin became the ubiquitous badet of this ecosystem of three billion people.
But some crypto enthusiasts are not very happy, especially because of the uncertainty surrounding the decentralization status of the room.
Technologist Phil Chen, HTC's decentralized chief officer, tells us that FBCoin, and JP Morgan's strength in that, looks a lot like intranets. Bitcoin, in his eyes, looks much more like the Internet – a multi-faceted system, (mostly) without permission, which promotes innovation through freedom. Although he states that there is room for private and unauthorized crypto-currencies, the two subsets are intrinsically antithetical and may have difficulty in existing in a mesh.
Mark Lamb of CoinFLEX explained to NewsBTC that if Facebook's badet existed in its famous walled garden, FBCoin would be just as "interesting as Venmo or PayPal", which would be beneficial for the Silicon Valley company, but not for Bitcoin . Still, he added that more likely than not, all business blockchain companies will fail over time, citing the fact thatWhen you have a private system, just use a database. "
The CEO of IDEX continued this line of thinking. Alex Wearn explained that while it is absolutely amazing to see companies "decide they want to build, develop and integrate" something in space, the question is whether FBCoin will be interoperable with other crypto -monnaies.
And that's the dilemma here. If Facebook is trying to introduce a payment ecosystem here, why not stick to a system similar to PayPal? For the moment, we do not know it.
Facebook's crypto is fast approaching
Some are skeptical about Facebook's intention in this space, but there is no doubt that the launch date of the project is fast approaching. Tim Draper, a remarkable visionary of the Bitcoin bull and blockchain, has announced to Bloomberg that he plans to meet with Facebook's blockchain team. Draper, who became famous in the field of crypto after buying $ 18 million worth of Bitcoin at an American Marshalls auction, explained that he "will see if it suits" his wallet. The famous cryptocurrency political scientist was reluctant to admit the amount he would invest, if at all, but given the hidden wealth of digital badets, it's probably not small.
This, added to the news that the company is in active discussion with cryptocurrency, implies that FBCoin could soon arrive on a Whatsapp app near you … soon. And in fact, that could be a good thing.
As Max Kordek, Lisk project manager, points out, "FBCoin is a good thing" because he believes Zuckerberg has "the best things in his head". He explained that in the end, it was a centralized blockchain or something else. Exploring Facebook in this space, especially by technologists, will be more of a net benefit to the industry at large than a harm.
Ari Paul of BlockTower echoed this. Paul points out that, even if centralized digital badets are "uninteresting" per se for the ferocious crypto-crusaders, who are enamored of resistance to censorship, immutability, security and peer-to-peer systems, the centralized cryptocurrencies will 'increase the global interest [in Bitcoin] Paul postulates that at least 30 million consumers could end up in Bitcoin with the launch of FBCoin, which means that the (decentralized) cryptocurrency community would double, without asking any questions. Not only would this enhance adoption, but this surge of users would also increase Bitcoin's network effects, thus increasing the value of BTC.
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