The mainstream media was extremely enthusiastic last week about the news that Facebook wants to launch its own digital token – the so-called “GlobalCoin”. The euphoria highlights the ignorance of many news agencies – in fact, Facebook is quite inappropriate for taking advantage of what we commonly call the cryptocurrency.
Cryptocurrencies are inherently mathematically secure, disruptive peer-to-peer technologies that act as decentralized forms of financing. Facebook is one million miles away from these concepts because the platform is highly centralized, highly censored, highly insecure and largely unreliable. Any currency produced by the social media monopoly is likely to have the same characteristics.
Wrong demographic data
Recent research suggests that Facebook users are changing demographically. The latest report from research firm Diar suggests that Facebook’s trip to the crypto world could be fruitless.
The platform has lost its dominance in the US teen market as the number of users declines in favor of alternative social media offerings such as YouTube and Snapchat.
GlobalCoin: Worries, not worries
Some well-known news agencies even compare GlobalCoin with Bitcoin, claiming that it might be a competitor. The two could not be more different: Bitcoin transactions can not be stopped because the blockchain is unchangeable by design. Facebook, like Paypal, will have full and complete control over all funds deposited and converted into its new coin.
Given its reputation for protecting personal information, it would be fair to say that Facebook is unable to provide substantial funding.
For the last year or two, Facebook has been known for scandals involving serious data breaches, security breaches, censorship, and the spread of fake news. How many people with sound minds will probably entrust this company with their hard earned money?
Categories: Crypto Currency