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John Kiguru
May 25, 2019
by John Kiguru

Facebook to Launch Bitcoin Rival as Early as Next Year but Not Everyone Is Thrilled About It

Facebook to Launch Bitcoin
Facebook is diversifying and as we have continuously reported, one way it's doing this is by creating its own cryptocurrency.  Though the project remained secret for months, in the last couple of weeks a lot has come out on the details of the project. The latest to come out is that the coin will be launched as early as 2020 according to reports. First, the project was only looking to provide a reliable way for WhatsApp users to transfer money but now Facebook has become more ambitious. The CEO, Mark Zuckerberg believes he can disrupt Bitcoin through Facebook coin and for many this is a tall order.

Can Facebook Coin Really Disrupt Bitcoin?

Well, its biggest drawback compared to Bitcoin is that it is not decentralized. Unlike Bitcoin which is fully decentralized and under no control of any authority, the Facebook coin which is internally been called GlobalCoin will be under the social media company. Although Facebook's coin is looking to do everything that Bitcoin does- fast, cheap financial system, by being controlled by the social media company, it beats the point of being a cryptocurrency.

Because of being under Facebook it has been reported by the BBC that Facebook has contacted several government agencies with respect to risks, opportunities, operational, and regulatory issues to ensure its success. The company has reportedly contacted the US Treasury and the Bank of England. In addition to looking for insight from the government to get ahead, Facebook is also reportedly in talks with Western Union and Visa to adopt its cryptocurrency.

Bitcoin's power of not being under control of any authority means that it is undoubtedly hard to be rivaled and especially not by a company embroiled with user data mishandling.

While not speaking directly about the Facebook coin, crypto bull Mike Novogratz has stated that even though the market is saturated with a lot of altcoins none can compete with Bitcoin, there is an aspect that Bitcoin cannot be beaten. He stated in an interview with CNBC:

...we are seeing Bitcoin really having established itself as a store of value. It won that lane. There is a lot of other parts of the crypto universe, but Bitcoin has won the lane of store of value,”

This is yet another aspect in which Bitcoin is way ahead compared to the yet to be launched Facebook coin.

 

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Facebook to Launch Bitcoin Rival as Early as Next Year but Not Everyone Is Thrilled About It
John Kiguru
John is an exceptional writer with a liking on technology, finance and the intersection of the two. A firm believer in the transformative potential of cryptocurrencies and the blockchain. When he is not writing, he likes to listen to Nas, Eminem and The Beatles.

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