Monday, 13 July 2020

Dear Stablecoins, please fix WhatsApp Monetization problem — signed Zuck

The prince of centralization, is going to hack decentralization. The last frontier of legacy social media apps like Facebook and LinkedIn is India.

Some are calling it remittance revenue, I’m calling it how to send money home more efficiently. A WhatsApp stablecoin would certainly help, it would also give new life to the digital asset market in the 2020s.

The Bloomberg article on this has sparked a lot of debate. WhatsApp is pretty popular and stablecoins had a banner year in 2018. It really does make sense.

With a growing blockchain division, Facebook is truly the largest company to embrace consumer blockchain service. That it wants to hijack crypto is pretty much in line with Facebook’s MO.

Facebook is the leader in my humble opinion to acquire Coinbase, and Coinbase is looking to boost its market valuation to have such a big ticket exit as a flashy Silicon Valley startup that become popular when Bitcoin was a “get-rich” scheme for young investors and high-risk volatility champions. Well sure, I’d accept payments in a WhatsAppCoin. Convenience trumps centralization in the evil tech world after all. Please charge a bit less than PayPal though, alright?

Stablecoins like STOs appear more Centralization Movement for Digital Assets (so long crypto!)
Stablecoins have indeed become all the rage in the blockchain space during the second half of this year, just as STOs have and may replace ICOs. So much for the open peer-to-peer feeling of crypto. What they are replacing altcoins and ICOs with feel totally centralized, regulated and tethered to the old world system.

WhatsApp is certainly a leading comms app for keeping in touch with family and even for News in some places in the world. In the spirit of sending money home, certainly a stablecoin does make sense. Facebook needs to find more utility than simple digital ads if it wants to survive the user exodus that’s coming to its ecosystem.

Yet with the worst December for the stock market in decades, Facebook has been hammered beyond recognition. Entering the blockchain hype is not necessary going to save its reputation from that of American internet trash. All it seems to have is a lot of users and a lot of profits, with huge wasted profits in verticals not named advertising.

If Facebook is a much maligned social media mogul, Mark Zuckerberg is the prince of centralized tech and data harvesting. Not exactly the most compatible thing with the decentralized spirit crypto movement. But as a value proposition, having its own cryptocurrency makes sense to breathe some badly needed utility into apps such as WhatsApp and Messenger. I’m a bit surprised Snapchat did not implement something like this already.

Facebook has an identity problem, as young people flock away from its flagship app, this means Instagram and WhatsApp are the last Facebook apps where value and hijacking of other people’s products can occur. Stealing Snapchat stories and hijacking crypto are Zuck’s answer to the void of innovation at his highly centralized and oligarchy like company.

By Michael K. Spencer
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