What Will the Relationship between Facebook and Similar Cryptocurrencies Be?

What Will the Relationship between Facebook and Similar Cryptocurrencies Be?

Have you followed the news about cryptocurrencies, you have surely heard about approaching the time of introducing cryptocurrency attributed to Facebook. However, it seems that Facebook cryptocurrency will be a stablecoin and backed by real currencies of the world and not be offered on a very decentralized infrastructure. In fact, there is a suspicion that a Facebook cryptocurrency doesn’t have any relationship with cryptocurrencies such as Bitcoin. Can recent measures of Facebook be known as a step onward for cryptocurrencies?

Has the Concept of Cryptocurrencies and Blockchain Been Manipulated?

Blockchain is a decentralized system, and no one has control on it. Cryptocurrencies, too, are moved without any middleman through an infrastructure Blockchain provides. However, apparently, by adding other elements such as stablecoins, i.e., cryptocurrencies which are backed by precious metals or real cryptocurrencies or other forms of cryptocurrencies which are directed and managed in a centralized way, the concept of Blockchain and cryptocurrencies has got much wider than before. Some say that Facebook’s stablecoin known as “GlobalCoin” is in this category too.

Do Measures on the Part of Companies Such as Facebook Help Developing Cryptocurrencies?

As it was stated before, cryptocurrencies which are active in a controlled infrastructure, question the primary idea of cryptocurrencies and Blockchain. Facebook’s stablecoin is controlled by this company and does not meet the expectations we have from cryptocurrency transactions. Now it is the question that “do such cryptocurrencies which have actually caused changes in the aspects of the primary concept of cryptocurrencies, help their development and growth in the world or not?” There are two hypotheses here; stablecoins and currencies which claim being cryptocurrencies, but in fact, they are under the control and management, draw the attention and concentration of the public to this field with their presence in new digital markets. As a result, the probability of forming the relationship between those who didn’t know anything about cryptocurrencies, and this market is on the rise. On the other hand, it is likely for them to draw the whole attention of the market to themselves through offering more tangible services than that of decentralized cryptocurrencies and considering better services they offer the users than the traditional ones. In this case, their presence will not be beneficial for the development of cryptocurrencies.

What Does Facebook Do in the World of Cryptocurrencies?

Facebook intends to create an infrastructure using Whats App platform and messenger to move money between the users as simply as sending images. It is one of Facebook purposes in the world of cryptocurrencies. Facebook wants to enable users to change dollar and other currencies to cryptocurrencies. There will be the possibility of purchasing anything on the internet with cryptocurrencies. Moreover, there will be no need to banks and intermediaries. Such approaches and programs cause the primary hypothesis about stablecoins’ presence to be empowered more than before. As a result, the odds that cryptocurrencies develop with the help of Facebook and its similar activities will get much more. We should wait until next months and see what Facebook will do in 2020.