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Facebook Is Getting Closer to Launching Its Own Cryptocurrency, but Why

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The rumors of Facebook own cryptocurrency are nothing new in the vast world of cryptocurrencies. They have been around for over a year now, with some insider reports confirming them for months, now. However, recently, another wave of confirmation has emerged, and these ones are referring to the coin as GlobalCoin.

There was already a number of events that seem to confirm the coin’s existence even further, such as the Facebook CEO, Mark Zuckerberg, meeting with the US Treasury and contacting the Bank of England in order to seek regulatory guidance and confirmation. Something is definitely coming, but one question that many are still asking is: Why? Why is Facebook developing its own cryptocurrency?

Facebook’s GlobalCoin

According to reports from those who seem to be familiar with the matter, GlobalCoin is expected to arrive in Q1 2020. In other words, the social media giant is ready to enter the final phase of designing the coin and start conducting various tests.

Considering Facebook’s size and user base, the coin will truly be a global one, and while this is nothing special when it comes to cryptos — they are borderless, after all — this will be the first coin with such a massive exposure. It will also be pegged to a number of different fiat currencies, such as the EUR and USD, and likely half a dozen others.

With over two billion people using Facebook, and even more using its WhatsApp and Instagram, this coin will help connect these platforms further, and also make it easy for people to send money to one another through them. It will also be useful within the platforms, as various purchasable applications will accept it.

In other words, one of the reasons why Facebook is developing its new coin is its potential to help the ecosystem grow and evolve. It will also help Facebook establish its dominance even further.

Facebook’s history with cryptocurrencies

This may surprise some people, but this is not the first time Facebook has been trying to develop its own cryptocurrency. About a decade ago, the company was trying to create Facebook Credits, which would act in pretty much the same way. However, that was way too early for digital currencies to emerge, and it was not profitable at all. Nobody was interested, and Facebook eventually dropped the project.

Then, Bitcoin emerged, and while it required nearly a decade to go big, it eventually happened, as we all know by now. Facebook saw this as an opportunity to get back to the old project, but also change it and adapt it to the current crypto space. Interestingly enough, Facebook also introduced a major ban on everything crypto-related last year, which many saw as a strange move.

However, it was assumed that the platform does not believe in crypto and that it wants to protect its users from fake ICO ads and similar dangers. Then, rumors of Facebook Coin emerged, and people got even more confused, as Facebook was, apparently, against the idea of crypto. Eventually, the ban on crypto advertising got lifted, and the company is now edging towards launching its own coin.

Concerns and benefits

Of course, there are still concerns regarding the new crypto, as many assume that Facebook will use the system to start monitoring its users even more closely. It already has issues with how it treats customer data, and now it seems to want more — to gain insight into users’ payment habits. However, to do so, Facebook did not have to go crypto. It could have easily launched a PayPal-like service that would work with traditional currencies.

The decision to join the crypto space shows that Facebook does believe in cryptocurrencies and that it decided to be among its pioneers. Further, many businesses and even some banks announced their own stablecoins, but Facebook’s reach is far greater, and it stands reasonable chance to beat them simply by adding its own digital currency and collect all of their potential customers.

It should be noted that the privacy issues remain, and a lot of details regarding the coin are still unclear. But, the launch of a GlobalCoin is generally a good thing, as it will expose billions of people to cryptos. If it ends up being good — great. If not, those billions of people will easily find their way towards Bitcoin. In other words, no matter how good or bad GlobalCoin ends up being — the crypto space will benefit from it. And, who knows, maybe Facebook ends up being responsible for mass adoption. With that in mind, it is not surprising that many see this as the most important development in the history of modern finances.

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Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and/or its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. Please conduct your own thorough research before investing in any cryptocurrency and read our full disclaimer.

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Altcoins

Cryptocurrency Collateralized Debt Positions Are Growing in Popularity

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collateralized debt position
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While Bitcoin (BTC) continues to hover around the magical 10,000 price level, altcoins continue to fight an uphill battle.  Simply put, hopes of a future bull run continue to diminish as Bitcoin maintains its dominance.  One school of thought is that a few altcoins will survive and flourish, but which ones are anyone’s guess.  That being said, it’s hard to go wrong picking against the top coins like Ethereum (ETH), Ripple (XRP), Litecoin (LTC), and EOS.  These projects have managed to find a foothold in the market and have a better chance than most of staying there.  While traders wait for their positions to increase in value, one opportunity that may be worth looking at is initiating a collateralized debt position.

What is a Cryptocurrency CDP?

In traditional terms, a CDP is essentially putting up collateral in order to receive a loan against the deposited amount.  There are several examples of this in our day to day lives.  Auto title loans from large companies like TitleMax are extremely popular with consumers.  Consumers are essentially able to use their car as collateral in exchange for a cash payment which can then be used for whatever needs the consumer has.  The consumer can continue using their car as long as debt payments are made.

The same concept applies to cryptocurrency CDPs.  Consumers are able to put up crypto tokens, such as…

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Altcoins

Hodium Presents a Compelling Opportunity for Outsized Investment Returns

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Hodium
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I’m sure all of us remember the cryptocurrency glory days of 2017 and early 2018.  It was one of the biggest bull runs in history and created incredibly wealth for quite a few early entrants.  Unfortunately, for most of us, those gains have most likely been wiped out during the altcoin apocalypse.  The truth is that traders probably thought a bit too highly of their trading abilities when the reality was that anyone could have thrown a dart at a board and ended up making money.

As markets mature (and the crypto market is definitely maturing) it becomes more and more difficult to generate alpha.  In that regard, it’s similar to traditional financial markets.  I can remember trading during my high school days.  It was the late 90s and right in the middle of the dot.com boom.  Eventually, however, the euphoria fades away and reality hits hard.  Now, it’s become rather difficult to actually trade profitably which has given way to the rise of hedge funds.

Hedge funds are investment funds that pool capital from accredited and/or institutional investors and invest in a variety of assets, often with extremely complex portfolio-construction and risk management techniques.  The professionals employed by hedge funds are the best of the best and have spent years honing their craft.  That is why they’re able to make the millions of dollars that they normally…

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Altcoins

KaratGold Proves Its Business Model By Providing Official Documents

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There has been a lot of renewed enthusiasm in the cryptocurrency market thanks mainly to Bitcoin’s strong move about 10,000.  Although Bitcoin continues to show its dominance, the altcoin market has yet to benefit from that rally.  A few of the largest altcoins remain popular but the rest of the market continues to lag behind.  In 2018, there was a lot of talk regarding a possible altcoin apocalypse where only the strong would survive.  That prediction appears to be playing out as expected.  Going forward, only the best projects that have a real world need will survive.  Crypto traders will have to spend a lot of their time doing proper research in order to find the best opportunities, just like in all financial markets.  One promising project that appears to have the makings of a future winner is KaratGold Coin.

KaratGold Background

KaratGold Coin is a cryptocurrency developed by the reputable German company Karatbars International, which maintains a leading position in the market of small gold items and investments. The project is part of a larger ecosystem, which involves several blockchain solutions that can be used for transactions, communication, investing and other tasks. During the past few weeks, however, the KaratGold ecosystem has been a target of unsavory scam allegations.  

Karatbars International and GSB Gold Standard Banking Corporation…

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