Insiders say both Facebook and Amazon will be creating their own cryptocurrencies in 2019. Will they threaten Bitcoin?
While financial experts and academics continue to debate the validity of cryptocurrencies, the reality is that major organizations are taking notice. Insiders at Amazon and Facebook report that the mega-companies are planning on rolling out their own virtual currencies sometime in 2019. Some predict that such a move could even threaten the dominance of Bitcoin.
Facebook and Amazon Making Their Own Cryptocurrencies?
Reports have surfaced that the powerful firms are quietly moving ahead with their crypto plans. Apparently, both companies have been on a massive hiring spree, plucking up lots of blockchain experts to get the job done. (Both companies definitely have the cash to do so!)
A prominent expert, Gavin Brown, a senior lecturer in cryptocurrency and blockchain technology at Manchester Metropolitan University, says that such a move would be a total game changer. He says:
This really could be an absolute gamechanger and would be a seriously smart move by both companies. This time last year Mark Zuckerberg was talking about crypto and blockchain being a solution to the challenges that Facebook faces, but there’s never been any clarity about what form that would take.
But if it is, as anticipated, the creation of a ‘Facecoin’ as such then it would seriously take the world by storm – the same applies to Amazon.
Both companies have a valid reason for creating their own cryptocurrency. Such a move would ensure that money used to buy the coins would then be spent within their own ecosystem. Customers would probably gain some perks and discounts while the respective companies would benefit from an increasing market share by locking in funds. Brown points out a similar situation with Starbucks and their pre-paid cards. He notes that Starbucks currently holds $1.3 billion on outstanding pre-paid cards.
Bitcoin Not Disappearing
Brown notes that a cryptocurrency issued by Amazon or Facebook could overshadow Bitcoin. He cites the probability that setting up and using such a virtual currency will be far easier than current cryptocurrencies. He says:
This would be easier, and enables people to move between the old world of fiat to the new world of cryptocurrency without going through the complicated procedures that currently put many people off getting involved.
This would be a simple step into that market for them, and if you’re a CTO of a multinational and suddenly the creation of money is available to you in this fashion then it becomes impossible to ignore.
However, Brown does concede that if Amazon and Facebook fully get into the crypto game, Bitcoin will not cease to exist. He says such virtual currencies could be a nail in Bitcoin’s coffin, but they won’t be THE nail. He goes to add:
Bitcoin is and always will be attractive to millions of people so I doubt the coffin will ever get built.
It’s quite possible that such a move by the corporations could spur the growing adoption and use of Bitcoin as those who use Amazon and Facebook will get introduced to the cryptocurrency ecosystem and become comfortable with it. While BTC’s market dominance might take a hit, having new corporate-issued coins could benefit the world’s foremost crypto tremendously.
Do you think BTC will be threatened by Amazon and Facebook? Let us know in the comments below.
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