In 2018, and early this year, Bitcoin experienced a bearish market that riled the interest of several parties and social media companies such as Facebook. As a result, Facebook has since entered the blockchain space with its own cryptocurrency known as FBCoin.
FBCoin and WhatsApp Users
“FBCoin” is an unofficial name for the crypto asset that the social media giant has designed for its users. Facebook intends to unveil the technology to billions of its users, along with the real name.
Besides Facebook, several technology companies have acknowledged the potential and power of crypto technology to revolutionize economic and financial systems. Cryptocurrencies are decentralized in nature, and as a result, Bitcoin has become vital to fintech in recent years. Facebook’s token is looking to compete with the best, including Bitcoin.
According to reports, FBCoin has been slated to appeal first to WhatsApp users in India for purposes of satisfying the domestic need for digital payments that has grown to prominence in places like China. The FBCoin will be developed on the stablecoin-esque model, backed to the cryptocurrency industry through external assets. It is not yet known whether the FBCoin will operate on a blockchain but on a number of occasions Facebook CEO Mark Zuckerberg has alluded to distributed ledger technologies.
Facebook Could Reach $19 Billion Windfall
Most cryptocurrency analysts believe that the FBCoin could garner massive traction in the coming years. In a note, Barclays’ Ross Sandler indicated that the coin could reach $19 billion in revenue windfall by 2021. The decentralized nature of Facebook and the coin’s status has left many crypto enthusiasts with questions regarding its potential.
Interoperability of FBCoin with other crypto assets is vital for its success, but the coin is seen as an intranet of money while other assets use the internet of money system. FBCoin will soon be launched as the company has been in discussions with other cryptocurrency exchanges.
Featured image: DepositPhotos © BrianAJackson
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