The primary USP of Bitcoin and cryptocurrencies is their ability to act independently on an automated system. The degree of control on the ledger varies between cryptocurrencies, but the idea of a transparent public blockchain is shared between platforms.
Spencer Bogart, General Partner at Blockchain Capital, in a recent with Bloomberg reiterated this fact and extended that analogy to Facebook’s digital coin as well. He said,
“Bitcoin has gone from zero users ten years ago to somewhere between 30 million to 100 million investors… Facebook has billions of users. Facebook is significant from a global scale perspective. Even if a small percentage of Facebook users trickle into crypto, we’re gonna see a double or triple in the user base of crypto.”
Since Facebook coin will exist and transactions would take place on the internet, it might attract people towards Bitcoin and other cryptocurrencies as well. Bogart mentioned that it would act as a ‘gateway drug’ or ‘stepping stone’ for new entrants in the digital currency space.
Hence, according to him, the Facebook coin will act as a dramatic catalyst for investment in cryptocurrencies.
‘Fire in the pants’ of FinTech Institutions
Moreover, he also threw light on the recent institutional developments toward cryptocurrencies. eTrade, TA Ameritrade and Fidelity were some of the most significant announcements made by the institutional firm which will begin trading of these assets on their platforms.
He reaffirmed his belief in cryptocurrencies that it is causing ‘fire in the pants’ of institutions which had earlier adopted a ‘wait and watch’ approach toward Bitcoin and Cryptocurrency.
Do you agree with his views or you think that centralization of Facebook and JPM coin will disrupt the cryptocurrency markets? Please share your views with us.
Nivesh from Engineering Background is a full-time Crypto Journalist at Coingape. He is an atheist who believes in love and cultural diversity. He believes that Cryptocurrency is a necessity to deter corruption. He holds small amounts of cryptocurrencies. Faith and fear are two sides of the same coin. Follow him on Twitter at @nivishoes or mail him at nivesh(at)coingape.com