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Blockchain Industry News

Facebook Coin Expected to Bring Billions in Additional Revenue by 2021

Facebook has announced it will launch its stable own cryptocurrency called “Facebook Coin”. On March 11, CNBC claimed it could potentially generate an estimated revenue of $19 billion by the year 2021.

$3B Valuation

Crypto-based revenue option is a perfect opportunity at this stage of growth of Facebook. In fact, Facebook shareholders perceive well primarily any revenue stream that is free from advertising. Barclays analyst Ross Sandler believes that this new coin is valued at $3 billion when it comes to the most conservative revenue estimate.

Crypto Versus Stock?

The Barclay analyst believes that the cryptocurrency could aid Facebook when it comes to the price of its share. In fact, Facebook shares have increased in value despite some high-profile scandals in 2018. Moreover, Sandler thinks that the original payment project of Facebook was similar to the structure of cryptocurrencies at present. Known as “Facebook Credits,” this virtual currency that was developed by The Menlo Park in 2010 actually allowed users to use domestic currencies to pre-pay credits for a wide range of in-app purchases.

Sandler stated that the first and original version of “Facebook Coin” may be a cryptocurrency that is used for micro-payments as well as money transfers of the domestic nature. However, Facebook will bear the burden of the exchange costs between traditional fiat money and the new “Facebook Coin.” This may cut into the profits of Facebook. What is exciting though is that Facebook is hoping that the new coin would succeed where Bitcoin once failed.

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