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US Adults Keen on Investing in ‘Facebook Coin’ Rather Than in Bitcoin: Survey

A recent survey by LendEDU reveals that adult Americans might not be so interested in the crypto market or assets it offers. However, many are looking forward to the stablecoin launch announced by Facebook

A New-Jersey-based website that allows consumers to compare loans for various goals, including studies or business, has recently conducted an interesting survey. It shows a high interest towards the announced ‘Facebook Coin’.

Adult Americans seem to prefer the yet unreleased stablecoin to investing in such popular crypto assets as Bitcoin, Ethereum, XRP and other cryptocurrencies. Full results have been published in the company’s blog.

Crypto market in 2019, big-names are stepping in

Numerous analysts, financial gurus and investors promise that 2019 is going to be much more fortunate for the crypto industry. Indeed, over the past few weeks, Bitcoin has made some major gains, peaking at the $8,000 level recently and pulling the whole market along up the charts.

In 2019, several major companies, which previously considered Bitcoin and other crypto to be fraud or a bubble, have changed their opinion and are currently working on their own digital coins or have even launched them. A good example here is the JP Morgan banking giant that has now fired away its own JPM Coin.

Another big-name which is about to enter the crypto market is Facebook.

All eyes on ‘Facebook Coin’

Despite the current turmoil in the crypto market, Bitcoin surpassing $8,000 and now falling back in a correction, many people, whose minds are far away from this, seem to be keen on the stablecoin announced by the social media giant.

The LendEDU survey was conducted on 1,000 adult US citizens and has found out that around 7% of them have ever invested in crypto, such as Bitcoin or other virtual assets. However, 18% are interested in investing in ‘Facebook Coin’ because it may have a great potential for practical use.

Facebook user-base totals over 1.5 bln people. Many respondents have said that the ‘FB Coin’ will be not only used for remittance to India via WhatsApp but it is more likely to transform Facebook’s marketplaces in the future.

Currently, people buy and sell goods in numerous groups on Facebook, and the survey participants believe that ‘FB Coin’ will be actively used for that, as well as for other purposes within the social network.

Besides, 57% of respondents chose an answer which implies that they trust Facebook to launch a better crypto coin than other virtual assets in the market.

The LendEDU blog
post says:

Facebook has the ability to tap into a considerable percentage of Americans (and their bank accounts) that have alluded the biggest virtual currencies like Bitcoin, Ethereum, and Ripple. Our data seems to indicate that this is in large part due to Facebook’s potent brand.

Photo by William Iven on Unsplash

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eToro’s Mati Greenspan Bashes the “Drop Gold” Campaign by Grayscale Investments

A top crypto analyst from eToro exchange calls the “Bye Gold, Buy Bitcoin” advert ‘childish’, saying the situation with Bitcoin and gold is actually different

In its recent ad, Grayscale Investments has featured people in the streets carrying huge amounts of gold but one of them deciding to drop his. This was meant to encourage viewers to become keen on crypto and BTC in particular, saying that unlike gold, Bitcoin has utility.

However, Mati Greenspan, a senior analyst from a crypto trading platform eToro, disagrees with this advert, saying that its creators ‘miss the point’.

‘Drop gold, buy Bitcoin’

The news about the commercial in question was reported by various news outlets, including some major ones. As reported by Decryptmedia, Barry Silbert, the CEO of Grayscale Investments, the company that made and launched the video, compares it with some viral commercials of the 1990s.

The Drop Gold site of the campaign says that gold is a thing of the past, referring to the US President Nixon who decided to drop the gold standard. Many crypto enthusiast, though, refer to this fact when they criticize the USD, saying that since then the US dollar is merely paper backed by no real assets.

The Drop Gold campaign persuades people to forget about gold and get Bitcoin instead, whereas many crypto community members on Twitter, including analysts, are filling threads with comments, saying that it is better to keep your gold rather than drop it for the sake of Bitcoin.

A senior analyst of eToro, an Israel-based crypto trading platform, Mati Greenspan says that the advert is creating controversy but does not get the point about Bitcoin.

“Bitcoin was invented to provide a currency that operates independently of governments and banks. It doesn’t mean it needs to replace them.”

The Bitcoin proponent actually
invests in gold

Greenspan, who is a Bitcoin bull, says that his investment portfolio includes not only crypto (along with Bitcoin) but also good old gold. He reckons that going only for crypto assets is unwise due to their extreme volatility.

Gold, he pointed out, has been a reliable store of value for centuries, so it is good enough for investment even now. It should not be dropped for the sake of crypto, since if a global catastrophe should occur and the world gets a massive power cut, you will not be able to use Bitcoin. Whereas, gold would be good to pay with.

“Gold has clear advantages over bitcoin. Physical gold can be used if the lights go out—you can’t use bitcoin. There are methods such as using satellites, but those aren’t feasible in daily life. If there’s no electricity, you can’t pay with bitcoin.”

Greenspan said that gold is good since it is
so scarce and will remain an excellent store of value for a long time onwards.

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Swiss Media Giant Opts to Pay Salaries in Bitcoin, Boosting Crypto Adoption

A major publishing company located in Switzerland has decided to give up
paying its staff in fiat and replace it with salaries in Bitcoin, despite its
strong volatility

On April 1, a major Swiss publisher Netzmedien
AG made a public statement saying it plans to start paying all its
employees in Bitcoin, leaving fiat behind. Previously, the company announced an
intention to turn 50 percent of its assets to crypto.

As the time of converting fiat to crypto drew nearer, the top management team offered all employees a choice – to continue earning fiat CHF (Swiss Franc) or switch to Bitcoin. Poll results showed that the staff opted for BTC.

Taking BTC for publications

The Netzmedien CEO, Heinrich Meyer, plans to start taking crypto for
their articles by the middle of 2019. The company owns eight
technology-oriented magazines and one full-scale website. Meyer proved to be a
crypto bull and he has assured the company’s employees that taking their
salaries in BTC will enable them to get more money than their officially stated
salaries in fiat. They will be able to either ‘hodl’ BTC or sell it on
exchanges at a higher rate.

Following other Swiss big
names

The CEO of Netzmedien AG seems to believe in the power of Bitcoin
despite the recent major downtrend in the market when its all-time-low totalled
around $3,100. When it happened, many critics, including Jamie Dimon, the JP Morgan
CEO, were led to believe that this was the end of the ‘Bitcoin bubble’.

 Still, the splashes of volatility
did not prevent Netzmedien from switching to BTC salaries. It is even more
remarkable that the staff are eager to go for getting paid in Bitcoin too.

Perhaps they were also pushed to it by the
fact that, as the company’s top executive Marc Landis said, presently some top
companies in Switzerland are accepting Bitcoin, thus expanding its adoption.
Among those companies are the SBB and Digitec Galaxus. The Grand Hotel Dolder
has reportedly joined them recently, announcing its intention to accept BTC
payments.

Crypto investing as another option

Still, Netzmedien seems to be also interested in crypto investment, unlike other Swiss companies. The publishing house in question stores crypto for investment purposes, hoping to get healthy returns once a bull run begins and gets strong.

Also, Netzmedien reportedly plans to go even
further than paying its staff in Bitcoin. The company also intends to diversify
its crypto investments and give the employees a choice – which coins they wish
to get their salaries in. So far, the firm is considering making investment in
Ethereum, and a few altcoins.

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UK Regulator: Most Crypto Investors Driven By “Get Rich Quick” Mindset

A series of studies published by the United Kingdom’s Financial Conduct Authority (FCA) reveal some of the mentality driving cryptocurrency investment interest. While all investors, whether it be the traditional markets or cryptocurrency, are motivated by the pursuit of profit, the U.K. studies found that a “get rich quick” mindset was pervasive in the crypto investing community.

In one of the studies, conducted by research firm Revealing Reality, a series of interviews was used to quantify the focus and motivation for the broader crypto investing community. Of the crypto traders interviewed in the study, the overwhelming majority reported cryptocurrency as a way to “get rich quick,” and saw investing in digital assets as an easy path to fortune. While the crypto markets are entering their thirteenth month of “crypto winter” with many coins price still down over 80 percent, the sheer volatility in daily price movement for crypto has allowed some investors to capitalize despite the falling market–and an even larger majority hoping to go long in the event of another bullish run like the one which ended 2017.

It’s worth noting the UK firm’s research centered around 31 cryptocurrency investors, with 17 of them actually being interviewed for their motivations. Of the group that mentioned being driven by a get-rich-quick mindset, social media and the behavior of other cryptocurrency investors in the space were cited as more evidence of their FOMO mentality. Interestingly, the study also found that the majority of investors interviewed had a general lack of understanding about cryptocurrencies, with researchers reporting that one investor did not even realize digital assets could be bought in fractions as opposed to the whole coin.

Similar to comments made in the past by Warren Buffett, who has referred to crypto traders as “gamblers” instead of investors, the research team reported that the majority of investors engage in risky practices, such as failing to conduct research prior to making their investment and relying upon the advice of so-called “experts.”

A larger study cited by the regulatory body, conducted by research agency Kantar TNS, polled 2,132 United Kingdom consumers on questions related to cryptocurrency. Of those polled, only ¼ reported being familiar with cryptocurrencies, with 58 percent of respondents stating that they had never heard of the concept. Kantar TNS reported that the majority of those familiar with cryptocurrency were male respondents, falling into the age range of 20 – 44, a finding that is consistent with what other agencies have reported as the key demographic for crypto investors.

Of those respondents who could identify cryptocurrencies, 23 percent first heard about digital assets from online news, while 16 percent reported hearing about the industry from friends or family.

Given the consistent theme of risk and general lack of understanding–or, at best, failure to conduct adequate research-associated with cryptocurrency investing, the FCA issued a warning to U.K. investors about the high volatility of the industry. The government agency followed up with a reminder that crypto is still not regulated in the U.K., and that investors were putting themselves at greater risk by pursuing digital assets.

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