Facebook’s Journey Into Cryptocurrency Could Increase Users By Threefold Globally
Facebook’s Journey Into Cryptocurrency Could Increase Users By Threefold
- Spencer Bogart of Blockchain Capital spoke to Bloomberg about the impact that the Facebook Coin would make.
- The crypto market could see an influx of two to three times the number of investors currently involved.
The cryptocurrency market has been seeing steady progress as more products come out to show exactly how much users can do with the technology. With traditional financial institutions getting involved, institutional investors are becoming more trustworthy, but it could be Facebook’s rumored asset that makes the big difference. According to a recent Bloomberg article, Spencer Bogart of Blockchain Capital has said that there is a chance of increasing the total users in the crypto industry by two or three times over if Facebook launches their coin.
Facebook is already home to over two billion users, and the launch of a coin from the social media company would ensure that a wider audience is finally exposed to the industry as a whole. As Bogart sees it, this work would increase the user base for the crypto market by at least double or triple the current numbers.
During his interview, Bogart said that he sees the Facebook Coin as a stepping stone, regardless of whether it ends up being a stablecoin or a different crypto asset. He believes that, by owning the Facebook Coin, users will slowly be able to expand to other cryptocurrencies, like Bitcoin and Ether. He added, “Some percentage of the user base is likely to do so, and again I think that’s gonna be a dramatic catalyst.”
More importantly, Bogart believes that the actions taken by Facebook have created a more important change in the cryptocurrency market. He said that the initiative “lit a fire in the pants of every major fintech and financial institution in the US.” For that fact, Bogart said that there is a lot of institutions that will see the way that Facebook handles their entry to the market as an example and an incentive for their own.
Facebook has been quietly pursuing their work in blockchain technology, hiring approximately 100 London-based software engineers, giving a greater opportunity to create additional revenue from WhatsApp. This project had already been trialed in India, though there have been multiple regulatory issues and user conflicts. The rumors that Facebook is getting involved with crypto have been perpetuated since David Marcus, the former PayPal president, joined the blockchain division in 2014.
Reports from Cointelegraph this week revealed that Facebook officially secured the trademark for its cryptocurrency project called Libra. Last week, it came out that Facebook was seeking out investments for a possible stablecoin, aiming to reach $1 billion.