By CCN.com: The cryptocurrency space is concerned about whether or not the upcoming Facebook Coin will hurt the Bitcoin market. But according to Spencer Bogart, the social media giant’s entry into the crypto space could be the best thing that ever happened to bitcoin.
The Blockchain Capital executive told Bloomberg that Facebook was a significant catalyst for boosting bitcoin’s adoption globally. The social media platform boasted billions of users worldwide. So, even a small percentage of them trickling into the cryptocurrency market could double or triple its user base.
“We have seen public reports of what Facebook might be working on – most of that is pretty private,” explained Bogart. “But what we do know is that they have [an extensive] and serious team that is working on some public blockchain effort – some payment system.
“At the same time, Bitcoin has gone from zero users ten years ago to somewhere between 30 to 100 million – the estimates are tough. And Facebook has billions of users.”
Bogart’s statement followed Facebook’s growing efforts to raise $1 billion in venture funding capital for its cryptocurrency project. The money, as reported by New York Times journalist, Nathanial Popper, will back Facebook Coin with a 1:1 peg. That will make the new venture another glorified stablecoin project but with a better probability of reaching mass adoption.
Update on Facebook’s cryptocurrency: Sources tell me that Facebook is now looking to get VC firms to invest in the Facebook cryptocurrency project we reported on earlier this year. I hear they are targeting big sums — as much as $1b.
— Nathaniel Popper (@nathanielpopper) April 8, 2019
Kik founder Ted Livingston said Facebook was more likely standing in favor of cryptocurrency adoption than against it. The stablecoin project of the world’s largest social media platform was more a threat to the US dollar than bitcoin.
“Not that long ago the world’s reserve currency was…