A Facebook or JPM Coin would actually be very good for Bitcoin!

in #bitcoin6 years ago (edited)

Most say a Facebook or JPM coin would spell the end for bitcoin, I disagree.

If you have been following the crypto news recently you may have heard about JPM coin as well as Facebook possibility developing their own coin to launch on their WhatsApp platform.

Details are a bit fuzzy at the moment on the latter as Facebook hasn't officially announced anything.

The information coming out currently is mostly leaked info and speculation by those reading between the lines.

That being said, the rumors are saying that they will launch a dollar pegged coin that can be used by their billions of users.

Does this mean the end for Bitcoin?

In my opinion, I actually think quite the opposite!

A Facebook coin would actually end up being hugely net positive for bitcoin!

Why do I think that you might be wonder?

Well, think about it for a second...

Facebook has billions of users, most of which have very little or no interest in cryptocurrency at the moment.

However, if all of the sudden their favorite platform now has a cryptocurrency, there is a very good chance at least some of those users use it and then eventually venture over into bitcoin as they venture down the crypto rabbit hole.

Users that likely would have never ventured into bitcoin otherwise.

If something like 1 out of 100 users were to buy some bitcoin, that would roughly double the current 32 million bitcoin users.

(Source: https://bitcoinexchangeguide.com/looking-into-global-powerhouses-jp-morgan-and-facebooks-entrance-into-the-crypto-market/)

It would improve global interest in crypto dramatically.

For a clear example of why I think this would be hugely beneficial to bitcoin, think about car dealerships as an example...

They are all right next to each other.

One might think that much competition that close together would be bad for business, but on the contrary, they benefit.

Another example would be carpet shops in New York.

They are all located on the same block, and for the same reason as the car dealerships. They all help bring in business for each other!

I think the kind of exposure and interest generated from something like a Facebook coin or a JPM coin would also be hugely positive for permissionless cryptocurrencies like bitcoin.

Sort of a rising tide lifts all boats type of thing.

Stay informed my friends.

Image Source:

https://steemit.com/news/@samstonehill/zuckerberg-announcement-are-we-about-to-see-a-facebook-coin-or-litecoin-fb-partnership

-Doc

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I agree. It would possibly generate more attention to CCs. But real innovators will adopt only decentralized crypto.

Yep and possibly. Though I think a lot of real world adoption could happen with a facebook dollar pegged coin.

Definitely think you are right here. Especially as both Facebook crypto and jp coin would be limited in their target population. Jp is only for internal or customer use, and unless you have millions of euros in transactions with them, you are not their customer!

Facebook, at the moment seems to be region locked for remittances... That might get people thinking about how to use other crypto for going further afield geographically.

.. And both are meant as stable coins and not as a result of a new economic loop.

Yep, it will be interesting to see how the develop. Either way, I think it will help bring more money into bitcoin as well.

It's exactly what the crypto space needs:
Mass adoption!
Let Facebook do the first time something useful 😋
Have a great day
Tom

Bitcoin is not going anywhere; it is here to stay 🧐

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As I understood they will have something like stable coin which already exists in some form. This could boost the crypto acceptance but also increase the volume and make it easier for average Joe to get involved. It does not matter if they will have even some form of centralization as long as they have huge user base which is important.

Yep, even if their coin catches on big time. It should on add-to what bitcoin is doing.

Bring it on! 😎👍

I hope they do it right so bitcoin takes off as well!

All bitcoin needs is some more time... 👊😎

I completely agree. With that interest piqued a lot of people are gonna be like "oh, maybe this whole crypto currency thing has a point." And then they're going to look into it and see why crypto currencies are so valuable. They're going to see how it let's them take command of their financial life, and then they're gonna think "Hey these corporate coins don't really offer me the autonomy I want, why don't I just buy some Bitcoin?"

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But knowing jpm dirty track record, couldn't they just create jpm coins from thin air then use them to buy up as many bitcoins as they want?

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In theory yes, though in reality probably not. I would think there is some kind of audit or oversight being done of these coins they create.

Whole development team of the code is background checked, then they will go through the source code of the coin. I know this, because I've been member of development team for several coins. Larger exchanges also require links to any discussion groups to see the size of the active userbase.

This may or may not be anything like a normal cryptocurrency. It may not be a "cryptocurrency" at all.

I divide everything to real cryptocurrencies and token contracts that ride on other cryptocurrencies... If something is neither, then it's not worth mentioning.

Like they say: If it walks like a duck, if it quacks like a duck, then it's a duck...

Yea it is just difficult to say exactly how these will operate considering they aren't even built yet...

We just have to wait and see... Doesn't make sense to speculate even though I'm a coin developer myself...

Hopefully, just hard knowing banksters never play by the rules....

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They skim where they can for sure. Hopefully this is something that regulators watch like a hawk.

Once they see the speed and costs of their first transaction, they will never come back to fiat!

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