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Is Facebook Driving Bitcoin (BTC) Price Rally?

Facebook Coin Bitcoin BTC 2019

Facebook’s interest into cryptocurrency, with the forthcoming Facebook coin likely to be announced in Q3 2019, is finally having its effect on the crypto markets.

The blockbuster rumor that Facebook was in the process of developing a stablecoin for its messaging platform had a small impact on the crypto markets at the time, in large part due to the “crypto winter” for coin prices throughout 2018. Plain and simple: excitement and investor interest in cryptocurrency hit a lull at the end of last year and beginning of 2019, as weary traders and retail investors all but fled the market. The rise in coin prices throughout the first quarter of 2019 have been enough to reignite digital assets, with Facebook making a serious foray into cryptocurrency grabbing the attention of institutional investors.

Some have called Facebook’s stablecoin a primary competitor to Bitcoin, representing the first established company to issue its own currency. However, Facebook’s impact upon the marketplace for cryptocurrency and its adoption has been more in favor of the entire of the industry than seeking to crush it through competition.

For years, cryptocurrency adoption ran into the roadblock of not having major names using or developing digital assets of their own. While Overstock.com was one of the larger online retailers to accept and support Bitcoin, industry pundits remained skeptical on whether a larger enterprise would both using digital currencies. Walmart and Amazon appeared favorites during the bullish run for crypto in 2017, owing to the fact that both companies operate on a large enough scale to benefit from the improved efficiency of blockchain.

However, Facebook has become the frontrunner in establishing massive interest for cryptocurrency. The Facebook coin will likely find a following amongst the 2+ billion users of the social media platform, particularly in developing countries where digital payments provide a welcome alternative to untrustworthy government fiat.

Nonetheless, the real industry growth comes from the exposure of cryptocurrency to such a massive user base. The current divide between a service like Venmo or PayPal and that of Bitcoin is still large enough to buffer otherwise tech-savvy users. With Facebook bringing cryptocurrency to the masses, the advent of token payments and digital alternatives to fiat becomes all the more appealing, particularly when targeted to the global audience that the social media platform commands.

The massive rise in valuation for Bitcoin, which took the coin above $6000 for the first time this year, is in no small part being drive by positive sentiment generated out of Facebook. The company recently announced a landmark shift in its cryptocurrency advertising policy that is clearly paving the way for their own stablecoin. Rather than repelling the industry and generating all-too familiar stereotypes of vagrancy, Facebook is now becoming one of the primary platforms of embracing the industry.

While Facebook Coin may become a substantial competitor to Bitcoin in the future, for now news of the social media platform is having a synergistic effect. Institutional and retail investors alike are changing their predicted outlook for cryptocurrency, and funneling their investment into the increasing market dominance of Bitcoin.

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Facebook May Be Setting Its Eyes on Crypto. Hires 40 Ex-PayPal Members to Work on Blockchain Division

After consolidating itself as the leading company in the world of social networks, Facebook has decided to intensify its efforts to enter the world of crypto and blockchain technologies in an attempt to expand its business model.

According to a report from the tech news portal Cheddar, Facebook has been quietly but resolutely focusing on research and development related to Blockchain technologies and perhaps exploring the creation of a proprietary cryptocurrency.

As reported by Ethereum World News, back in May, Facebook created a Blockchain Development Department, with David Marcus at the head. At the time, Marcus commented that he had in mind to start with a small group of people to explore the various possibilities without talking about any particular type of interest:

” I’m setting up a small group to explore how to best leverage Blockchain across Facebook, starting from scratch …  However, it seems that the potential offered by blockchain technologies is greater than what the Facebook team expected, and since that time, more than 40 new members have joined the division among which stands out an important group of “former PayPal execs.”

According to information published by the Web 2.0 behemoth, the use of blockchain technologies could be oriented to areas related to the economy or the data transmission.

[Facebook’s] ultimate goal is to help billions of people with access to things they don’t have now, which could be things like equitable financial services, new ways to save, or new ways to share information.

However, Facebook has kept the research and work of this team as secretive as possible. After being asked about Mr. Zuckerberg’s expectations of this department, a spokesperson commented that he could not give more details besides the exploratory character that this team has at the moment.

“Like many other companies, Facebook is exploring ways to leverage the power of blockchain technology. This new small team is exploring many different applications. We don’t have anything further to share.”

Hiring people with experience in both tech and economic business may provide one more hint at Facebook’s intentions. However, it is not yet sure what could Mark Zuckerberg be aiming at. According to an analysis by Ethereum World News Reporter, Mr. John Njui, a native token or cryptocurrency could be particularly helpful for Facebook in many areas:

“With over 2 Billion active monthly users, Facebook cannot ignore the fact that such a user base can use a native cryptocurrency for the following purposes:

  • Pay for subscriptions on the social media platform
  • Pay for ads not to be displayed on their news feed
  • Rewarding users for CPU usage (mining)
  • Tipping rather than just liking posts
  • Paying business ads on the platform
  • Expanding its already existing marketplace to allow it to transcend international borders
  • Launching a crypto wallet with exchange services
  • Micropayments fused with cross-border transactions”

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