After weeks of heartache for Bitcoin enthusiasts, the currency has bounced back. Bitcoin hit its yearly low weeks ago and since then, it has gained 27 percent to hit $3,945 earlier today. The currency had gained 3.8 percent in the past 24 hours and was trading at $3,770 at press time. As is always the trend, the markets varied, with some like Bitfinex and HitBTC hitting over $3,840. U.S markets including Kraken and Coinbase Pro posted lower figures at $3,712.
The rebound is quite commendable given its recent bear run, but Bitcoin may not have a bright future ahead. According to one expert, the revamped interest from Facebook could introduce a worthy challenger for the crypto throne, and Bitcoin is likely to come up short. And it’s not only Facebook, British blockchain and crypto expert Gavin Brown explained. Amazon could get into the ring as well, and Bitcoin will not stand a chance against the two global tech giants.
A Game of Thrones
It has recently emerged that Facebook has rejuvenated its efforts in the blockchain and crypto space. U.S financial news outlet Cheddar reported that the company has hired over 40 experts in the industry recently. They include former PayPal top-level executives. The goal is to launch a decentralized token for its more than 2 billion users.
The crypto community welcomed the news, but it presents a new challenge to Bitcoin according to Brown. Brown is a senior lecturer and researcher in blockchain technology and cryptos at the Manchester Metropolitan University.
Facebook is yet to make its crypto plans clear, but reports suggest that it’s developing its own in-house crypto token. Brown believes that ‘Facecoin’ could deal a big blow to Bitcoin, even potentially a nail in the coffin. Speaking to U.K outlet Express, he stated:
This time last year Mark Zuckerberg was talking about crypto and blockchain being a solution to the challenges that Facebook faces, but there’s never been any clarity about what form that would take. But if it is, as anticipated, the creation of a ‘Facecoin’ as such then it would seriously take the world by storm
Facecoin, if created, will definitely have an upper hand. For one, it will have two billion people ready to use and back it. In comparison, there are about 50 million crypto wallets, and not all these are active. Second, Facebook might make it much easier to access the token to their users. One of the challenges Bitcoin has encountered is the perception that it’s difficult to obtain and use.
Would Facecoin Just Be Repackaging the Original Problem?
Satoshi gave us Bitcoin to give us freedom from monopolies. The peer-to-peer currency is governed by mathematics and programming, with no single entity having absolute power. Bitcoin was supposed to give back the power to the most important faction in the ecosystem, the user.
However, if Facecoin took over, Satoshi’s vision could be jeopardized. Facebook could have control over the currency and could dictate its supply, circulation and more. In recent times, Facebook has been at the spotlight, with privacy and manipulation scandals being the order of the day.
Whether Facecoin will threaten Bitcoin is still unknown. The token could become just a medium of exchange on the platform while Bitcoin pursues the larger fiat-dominated market. For now, one thing is clear; Bitcoin is on the recovery path once again and could recapture the $4,000 soon.