The Facebook crypto craze is beginning to attract a decent amount of attention. There is no denying that the company is working on a stablecoin to use within its incredibly large network. A lot of experts have wondered why the Facebook crypto dilemma cannot be solved by an existing cryptocurrency.
The most obvious answer is that Facebook fully embraces an existing cryptocurrency, it’s value would probably skyrocket. This will also create a lot of market turbulence and other cryptocurrencies might suffer.
A potential Facebook crypto endorsement would really be a shock for the market but things will inevitably stabilize.
The biggest reason Facebook is not using an existing cryptocurrency is because of the very same giant network it looks to transfer value between. If the company openly begins using a single cryptocurrency, more than 2 billion people will have easy access to it. This leaves only the option for an entirely new cryptocurrency.
If all things go well, the new Facebook crypto token will have a potential userbase way over all the other cryptocurrencies combined. This leaves us with the most important question: How much will this new token cost? With the reasonably high volatility of the crypto market it’s impossible to predict the price. It’s absolutely certain that a Facebook token will generate a huge amount of utility.
Facebook crypto aspirations are not the first of their kind
The Korean conglomerate Kakao has already announced its plans to integrate crypto into the KakaoTalk platform. Telegram is also building a new blockchain from the ground up.
Facebook crypto intentions are understandable, but they don’t bring much clarity on the subject of privacy. Something the company is struggling after the recent exposures about it selling private data to ad companies for years. Can a token issued without a real decentralized governance be in fact called a cryptocurrency?
The CEO of Minds.com, Bill Ottman had this to say about the inevitable crypto and blockchain endorsement by social media platforms:
“It’s stunning that both Dorsey and Zuckerberg, responsible for the biggest tools of distraction in modern times are interested in real money. It’s wonderful to see them invest in blockchain tech, but those investments seem trivial when they aren’t walking on the same path.”
Twitter’s CEO, Jack Dorsey, does not have a good reputation with the crypto community because of his views on censorship. There is no doubt that censorship is a very ineffective tool when it comes to debates. While the Facebook crypto plans are yet unclear, it’s a scary possibility that they can even further restrict your privacy.
The new Facebook token will probably know when you held it, who else held it, how long someone in another country held it and so on. There is no information on how much user data will be on these tokens and if they’ll be tradeable at other crypto exchanges.
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