The crypto winter has been extended, harsh, and according to many knowledgeable experts, not over yet. The cryptosphere’s been spilling lots of ink imagining what will be the event that finally brings the protracted bearish run to a close and welcome the bulls back to the market. There’s been talk about institutional money, projects like Bakkt, SEC’s decisions on Ripple and other currencies, and many different hypotheses. But how about Facebook?
It’s probably true that the 2018 bearish market is not over yet, even as we enter 2019’s fifth month. But it’s also true that we’ve seen some encouraging signs in the last few weeks. The last month has been very good especially for Bitcoin. So it would seem that the market is getting ready to take off and that all it will take is the right trigger to send cryptocurrency prices through the roof once again.
And that trigger could be none other than Facebook.
A few months ago, Facebook announced that it was putting together a team of digital technology experts within the company. The team’s job would be to explore the possibilities in blockchain technology and digital assets. The aim would be to figure out how Facebook can take advantage of those technologies to improve its services, and also make money.
So what has the team been doing all this time? To be honest, we don’t know. Nobody knows. Facebook has been exceedingly secretive on the subject, and they’ve managed to be effective about that. Rumors abound, though. Facebook entrance into the blockchain world could be a payments system based on its already extensive network.
It would allow transferring value between users very quickly and cheaply, using cryptocurrencies as a means of exchange. It would be an obvious option, to be sure. But the fact remains, we don’t know anything yet. Actually, is anybody’s guess is the people at Facebook themselves already do know what they’re going to do.
Let’s give this a bit of thought, however. Bitcoin has gone from one user (Satoshi) to millions of users in roughly a decade. It’s tough to pin down the correct number of Bitcoin holders or users. Estimates vary between 30 to 100 million persons scattered all over the world.
Facebook’s user population is not in the hundreds of millions. The official number is 2.38 billion users, according to the company itself. If Facebook were to implement a blockchain-based service and promote a cryptocurrency (one of the already existing ones or one of its own), the number of users it could get from one day to the next would dwarf even Bitcoin’s network.
Forget about a payments system. Any kind of blockchain-based technology issued by Facebook that would require the use of any cryptocurrency at all would create insane amounts of demand and very high trading volumes. And high demand coupled with high trading values translates into high market prices. So that’s how Facebook could bring about the next bullish run into the crypto verse, and it could end up being the largest one in history.
But will that happen in reality? We still don’t know, and Facebook remains silent, so we’ll have to wait and see. With the foremost attention.
Disclaimer: The presented information is subjected to market condition and may include the very own opinion of the author. Please do your ‘very own’ market research before making any investment in cryptocurrencies. Neither the writer nor the publication (TronWeekly.com) holds any responsibility for your financial loss.