Facebook’s Coin, Global Coin is yet to be launched, but it is already a threat to public blockchains like Bitcoin cash. The latter is a hard fork of Bitcoin whose purpose is to resolve Bitcoin’s scalability issues even though it ended up having its own bone of contention.
Facebook Shows Interest in Cryptocurrency Technology
It’s no longer news that Facebook, a U.S. based social media company has been looking into the cryptocurrency industry of late and intends to launch its very own crypto asset, Global Coin. While that may be music to the ears of the crypto community, it may not be receptive to the Bitcoin Cash community and other public blockchains.
Bitcoin Cash, a fork of Bitcoin was created in mid-2017 by Roger Ver and his team in a bid to increase Bitcoin’s block size limit and reduce transaction fees. Striving to become what Bitcoin failed to be, its group of developers took advantage of the Bitcoin brand to market the asset and hoped that will eventually replace Bitcoin someday. Nonetheless, its 3.7 percent decline in price and $6 billion market cap today shows that it is still a long distance away from replacing the top cryptocurrency on the market.
It may have succeeded in its scheme at first which helped to push its price, but as of today, it can be said that it is still relying on Bitcoin’s upward and downward price movement to determine where it stands. There’s also the problem of low media transaction value and concerns of a possible deep chain re-org. At this point, it is difficult to convince spectators that the network is dominant and will not be overtaken by Facebook coin which will be backed by over 2 billion users across the world.