Slashdot Mirror
Facebook's Cryptocurrency Could Be a $19 Billion Revenue Opportunity, Barclays Says (gizmodo.com)
Barclays internet analyst Ross Sandler says the new cryptocurrency that Facebook is working on could be part of a multibillion-dollar revenue opportunity. "Sandler forecasted as much as $19 billion in additional revenue by 2021 from 'Facebook Coin,'" reports CNBC. "Conservatively, the firm sees a base-case of an incremental $3 billion in revenue from a successful cryptocurrency implementation. 'Merely establishing this revenue stream starts to change the story for Facebook shares in our view,' Sandler said." From the report: Facebook is reportedly developing a cryptocurrency for global payments that will be tied to the value of traditional currencies and available to use through its messenger "WhatsApp," according to Bloomberg and The New York Times. Facebook has not publicly commented on the reports. Price volatility has been one major roadblock to bitcoin's widespread adoption as an everyday payment option. But Facebook's digital currency, a "stable coin," would likely be less attractive to speculators because of its fixed price tied to a currency like the U.S. dollar.
"Any attempt to build out revenue streams outside of advertising, especially those that don't abuse user privacy are likely to be well-received by Facebook's shareholders," Sandler said. Barclays based its Facebook revenue estimates off of Google's digital distribution service, which is also the official app store for Android's operating system. "Google Play," as it's called, generates $6 in "net" revenue per user now. Facebook could see a "similar cadence," across its nearly 3 billion users in 2021. A Facebook virtual currency would allow for more premium content to find its way back to Facebook, Sandler said, as companies re-establish themselves on the social network as a strategic partner.
"Any attempt to build out revenue streams outside of advertising, especially those that don't abuse user privacy are likely to be well-received by Facebook's shareholders," Sandler said. Barclays based its Facebook revenue estimates off of Google's digital distribution service, which is also the official app store for Android's operating system. "Google Play," as it's called, generates $6 in "net" revenue per user now. Facebook could see a "similar cadence," across its nearly 3 billion users in 2021. A Facebook virtual currency would allow for more premium content to find its way back to Facebook, Sandler said, as companies re-establish themselves on the social network as a strategic partner.
What happens when you cross one of the largest companies on the planet and a new currency?
As much as 'social media' changed the face of democracy in the last few years, this could have a much bigger impact. Just imagine if people in countries that do not have stable currencies had a choice. People may trust 'FBcoin' more than they ever trusted Bitcoin.
With all of that being said, for a company that doesn't seem to respect anyone's privacy, this could be a real doozy.
--
The world as we have created it is a process of our thinking. It cannot be changed without changing our thinking. - Albert Einstein
Hey how about you turn your abstract voucher in for this abstract voucher written for slightly less? God people are stupid cuz it's probably going to work. In the end that 19 billion in revenue represents a 19 billion dollar in mislabeled charity to Facebook. We already have ways to exchange money. I already have ways to do it instantly. This is a stupid redundant project that unfortunately will probably not be nipped in the bud.
They can't even manage to keep my email address private, now I'm going to trust my finances to their imaginary currency that nobody wants? Sure thing. Let me sign up for that right away.
I wonder what the pitch is: "It's like US dollars, except only online, and harder to spend."
Can't wait until we have entire exchanges based on made-up , house-brand currency. Facebook Dollars, Amazon Samoleans, Starbucks Bucks. I feel like people have tried building a system of imaginary currency before. Can't recall the name because why would anyone know the name of that any more.
This will likely end up being called FaceCoin, because two syllables is easy to say.
There isn't yet a cryptocoin called this, but I expect one will be created in a day. Then Facebook will have to buy them out to get the name. Call it coin-squatting.
FaceCoin exists: https://coinmarketcap.com/curr...
A stable coin fixed to USD is simply fiat credits held by a custodial account which is a very old business practice. The additional revenue will come from fees and services people pay to facebook when they buy these credits or "gift cards". Many services like youtube already have tipping with fiat doing this so there is nothing unique except them using the term "crytocurrency" as a marketing gimmick.
1-The main benefit of Bitcoin is the decentralized and not controlled by 1 company thing. This proposal just makes them a bank. 2-If your currency is issued by a corporation then they know everything you do so they can sell your privacy even better. 3-Switching Americans over to a private currency would make tax evasion so much harder for the IRS to track. I don't see why the American Government would allow this.
I think it was one government. We're all OK with one company doing it because yay for free markets111oneeleven1!!!!
Confucius say, "Find worm in apple - bad. Find half a worm - worse."