Facebook to Launch Its Own Cryptocurrency
Facebook has really come out of no where many years ago, and has literally exploded onto the virtual world.
Facebook also seems to polarise different people, either they fove it and are regular, if not very regular users, like almost hooked on it, or there are those that dismiss it, and would never be caught using the service.
The service has it positive points, and also its “whole new realm of mischief” aspects.
It is a great way to stay in touch with friends and know what is going on in their lives, and also for locating long lost friends.
However, sharing your relationship status, which can change daily, publicly airing personal and family arguments, and the amount of information and details about someone that is shared, is a bit much.
Going on holiday, post it on Facebook; you may as well advertise to people, I’m away, come rob my house.
That is a bit extreme, but a fact and reality.
Besides being one of the largest IPO’s/Initial Public Offering when its stocks were offered, the company is worth billions, and has access to so much information on its users.
All these details, data and information about yourself is valuable and worth money.
Money that Facebook can make off this information, by selling it, or just using it to target ads.
If you remember the Facebook scandal a couple of years back, where third party apps on the Facebook site were used to harvest information.
So with all this information and access to even more information, because we post new details daily, if not hourly, what is next for Facebook, where to go next???
Being an investor or not, you may have read in the news about bitcoin and other cryptocurrencies, and not just how volatile they are as investments, but also how quickly they were growing in value. A small investment could yield thousands of pounds.
It also could yield a lot of risk.
So much so the FCA/Financial Conduct Authority warned of investing in cryptocurrencies.
And yet people still invested in these virtual coins, and the market for them is still there.
So with a market still there, and Facebook having a billion or billions of users and their details, why not launch their own cryptocurrency.
I mean, why not?
Facebook and Digital Money
Facebook has announced that by 2020, which is not that far off, they will launch “GlobalCoin” their own digital currency.
This however, is not Facebook’s first venture into “digital currencies”, over 10 years ago they tried and launched “Facebook Credits”.
Facebook Credits did not grow to be as popular as Facebook had hoped, and was withdrawn after a period of time.
So fast forward to today, and they are launching GlobalCoin.
While Bitcoin and other cryptocurrencies may be volatile, they are are secure, secure due to “blockchain” technology. A blockchain is in essence a huge ledger showing all transactions prior to the current transaction, and all transactions that follow.
One cannot change one transaction, without changing all those transactions that were before and after the one you wish to change.
Blockchain and cryptocurrencies also offer anonymity. Which means cryptocurrencies can be good to launder money, and hide money gained through illegal means.
This can pose some hurdles for Facebook, as they will need to show not just the U.S. Treasury, but also world banks their system is secure, and not involved in any illegal money means.
Why world banks and treasuries in other countries, because with digital money/cryptocurrencies there is no central bank. So Facebook will need to jump through every hoop, and compliance issue in each country it wishes for its new currency to be able to be used.
If it wants to go mainstream.
Then there is consumer trust. Will we as consumers trust Facebook’s currency??
Facebook has in excess of two (2) billion users, even if a small percentage make use of the currency, it could be a start in the cryptocurrency world for the social media giant.