News is currently circulating around stipulating Facebook is planning on launching a Globalcoin in 2020. This news has not been well received by many in the cryptocurrency space as some think Facebook’s Globalcoin might be an obstacle to Bitcoin’s growth while others think it won’t gain adoption given Facebook’s centralized nature.
However, whether Facebook’s Globalcoin gets much interest or not remains to be seen. One thing is however for sure; true believers in Bitcoin, it’s blockchain technology and everything it stands for will not touch the coin.
Why Facebook’s Globalcoin is an advantage for Bitcoin
If there is one thing which Bitcoin and cryptocurrencies need right now is mass adoption. Though this is moving in the right direction, the adoption is relatively slow.
With Facebook launching a “Globalcoin”, this will not only bring more confidence to cryptocurrencies, and will also expose cryptocurrencies to over 2 billion potential users.
Many people either do not know what cryptocurrencies are and some of those who know what they are afraid to touch cryptocurrencies given the fact that they associate it with criminals.
With 2.7 billion users, Bitcoin stands to gain much exposure via Facebook’s Globalcoin.
Also, given Facebook’s popularity, this might push those who had doubts on whether to invest in cryptocurrencies to start looking into possibilities of investing.
Mike Novogratz also believes Bitcoin will gain from Facebook’s entry to the space and he thinks this will make Bitcoin even more like Gold.
"Facebook is wildly important for the ecosystem" – @novogratz on #cryptocurrency "Bitcoin is not going to be a payment currency. Bitcoin is going to be a stored value just like gold." pic.twitter.com/NzyPeLxI3T
— Squawk Box (@SquawkCNBC) May 24, 2019
How Zukerburg’s Globalcoin will be an advantage to Bitcoin
FB’s Globalcoin is a Stablecoin
Given all speculations, Facebook is planning on launching a stablecoin. This, therefore, means the coin will be similar to Tether, pegged to the US dollar with little to no possibility of its value rising as time goes on.
Though this might be handy for payments, Bitcoin serves both as a currency for payments and a store of value.
It is very likely that when Facebook users get introduced to Facebook’s Globalcoin and later learn of Bitcoin, most of them will turn to use Bitcoin instead. The fact that the value of Bitcoin increases over time will appeal to many as opposed to Facebook’s Globalcoin which will be stable.
Facebook’s privacy issues
Facebook continues to face privacy issues and this does not seem like it will be changing anytime soon.
It is highly likely that after Facebook’s 2.7 billion users get introduced to Facebook’s Globalcoin, they will realize that Bitcoin solves some of the privacy issues that Facebook’s Globalcoin will pose.
Also, it is certain that Facebook’s Globalcoin will be fully centralized while Bitcoin is decentralized. The fact that no one has control of your money when using Bitcoin is something many of Facebook’s users will get to understand.
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