Since Facebook announced its upcoming cryptocurrency, there has been a lot of speculation from crypto enthusiasts. As Facebook founder, Mark Zuckerberg promotes his vision for the Facebook marketplace and social media platform; he intends to make it a trusted brand for secure payments between users.
Bitcoin (BTC) Price Today – BTC / USD
Uncertainty about the strength of the coin
Many enthusiasts were uncertain about this offering, and some even wrote that bitcoin might soon get a major competitor. This statement referred to the social networking giant, Facebook.
About a week ago, Mike Isaac and Nathaniel Popper from New York Time revealed that the social media giant is working on a crypto to disrupt bitcoin’s place for digital peer to peer payments. This plan hopes to fill in the gaps where bitcoin has failed such as trust, scale, and clout.
The article spoke about how Telegram and Facebook are planning to succeed where BTC has failed. It read,
“The most anticipated but secretive project is underway at Facebook. The company is working on a coin that users of WhatsApp, which Facebook owns, could send to friends and family instantly, said five people briefed on the effort who spoke on the condition of anonymity because of confidentiality agreements.”
Another article compared Facebook’s crypto to JP Morgan blockchain ICO cryptocurrency.
Is Facebook a threat to Bitcoin?
Facebook payment is definitely not a threat in this case. In the first place, the coin has not had any effect on the BTC Price so far. If it were a threat, there could have been some effect on the price of the foremost cryptocurrency.
Well, it may be the same as the JPM Coin from JP Morgan. The stablecoin is used as an accounting system for moving dollars around seamlessly. This is a clear indication that it does not have the ability to compete with bitcoin.
On the other hand, it is not aiming at succeeding where BTC failed because bitcoin did not fail. It has done a great job so far by being the largest scale deployment of public key cryptography of all times.
It has been used to secure financial and banking transactions on a trustless, transparent, open, decentralized and peer to peer network which is governed by checks and balances.
Facebook’s aim is far different from what is touted
The tech company is not trying to compete with what bitcoin is capable of. It is creating something else that is completely different and already exists in the tech space today.
Many social media users already have issues with how privacy is handled by the company, and it would be difficult to convince people to buy the idea. Several crypto analysts believe that the plan may just flop and compared it to the failure of Google Plus to take over the social media scene from Facebook.
Others believe that the coin would have been better if it wasn’t an adaptation of an already existing technology.
What are your thoughts on this matter? Do you think Facebook coin will displace the leading digital currency? Would you use the coin for anything other than sending messages to a Facebook friend?