Social media followers of Facebook CEO Mark Zuckerberg are speculating that Facebook may have a cryptocurrency service in 2018. The reason his followers believe this is Zuckerberg’s post about how decentralization empowers people. He talked about how using technology to monitor people is the opposite of empowerment, which sounds like he is advocating decentralization, the foundation of cryptocurrencies.
It would be simple for Facebook to develop an alternate currency; they already employ technical wizards or it may be easier for Facebook to buy a blockchain company. David Marcus, a Facebook VP, is a Coinbase, a large crypto exchange, board member. If Facebook gave away one coin to each active member, the company would have two billion users from the start. As of Janurary 2018, there are 1384 cryptocurrencies to choose from and new cryptocurrencies launch almost daily. Most fail, but a Facebook coin would have value with the unbanked on Facebook and those who are curious about cryptocurrency. In addition, they have name recognition and trust on their side. With an open source API, developer could create payment gateways that accept Facebook coins or they could create new wallets, which is already a fast growing business.
Other mainstream companies, such as Kodak, have launched cryptocurrencies. Kodak released KodakCoin to use as payment for licensed images; there would be many uses for a Facebook coin on the site. Moreover, Zuckerberg must have noticed Kodak’s stock price soar.
Speculators have wondered if Facebook would use their cryptcurrency to reward users for creating content and they also say the they would not be surprised if Microsoft and Google developed their own cryptocurrencies as well.
Top investment analysts, such as Warren Buffet, are not impressed with cryptocurrencies, such as Bitcoin. Michael Novogratz, former hedge fund manager, has said the cryptocurrencies are a big bubble, while JPMorgan Chase CEO Jamie Dimon was even more adamantly negative, calling cryptocurrencies a fraud.
Dil Bole Oberoi
