This Is Why You Should Not Care About Facebook Coin.

By Tokenclaimer on ALTCOIN MAGAZINE

Can you imagine it already? The new Lambo, big house and all the vacations you will take to Hawaii?

Pope taking out his Lamborghini.

All because you decided to be an early investor in Globalcoin, the coin Facebook is developing. But there is a small problem. You can’t own the coin. In fact, there is a possibility you never will.

Why Would Facebook Launch A Coin And Not Let You Own It?

There is honestly no reason for Facebook to let you in on the coin. Unlike most cryptocurrencies, Facebook only wants to streamline the process for advertisers to join the platform and spend money on Facebook Ads.

It will be a closed ecosystem for the following reasons:

Stability

Facebook can keep all tech in their own hands and assure that they keep control over every single coin.

Price

Another great perk of having a closed ecosystem is that the developers can decide the price. Nobody can sell outside the markets made by said developers.

Data

Keep track of who buys what coin, and you have more data to process for advertisers. Why let people tumble their coins and lose oversight?

As an added bonus, Facebook can get a chance to get cryptocurrency fans back on the platform, since the platform camps with the problem of an aging user base.

This user base is not up to date on cryptocurrency technology and is very much outdated with current technology.

Facebook Age distribution. Source: Diar

A younger audience means more ad clicks, more purchases, and useful information.

The process to buy Globalcoin will be probably as follows:

You deposit Bitcoin or altcoins on their (closed source) platform Facebook automatically exchanges it to Globalcoin. Price is pegged so you are not vulnerable to price changes. Now you can spend it on Facebook Ads and nothing more.

As you can see this is the least exciting thing that could happen for cryptocurrency in general.

What Can You Hope For?

There is still a small possibility it will increase blockchain awareness and drive people to the real cryptocurrency. People will see Globalcoin and do research on alternatives and find out that that Globalcoin is not a real cryptocurrency.

All in all, don’t be excited about this. Adoption will happen but it won’t be with the help of Facebook and other giant corporations.