Facebook Inc. continues to make headlines as the release of their Diem project quickly approaches. Rumors today circulated early about Facebook potentially buying Bitcoin and the media is running with it, heating up speculation into Facebook's earnings release tomorrow.
Facebook and its partners plan to launch Diem, a new global cryptocurrency later this year and I anticipate the company giving some insight into the project tomorrow over their conference call, so tune in! Facebook continues to stand behind their main "Libra thesis" as 1.7 billion people around the world still go unbanked, which is driving them into this market once again.
The Diem mission is to increase transfer speeds, and decrease transaction fees among its users. Social media has shown innovative ways to connect individuals together around the world, and Facebook is by far the leader in bringing people and communities together in the past. It is their hope to do the same with their users' money.
Facebook says sending money in the future will be as easy as sending a private message to your friends. Building a trusted and innovative financial network that empowers people and businesses around the world will be the test for Facebook as they continue to get backlash for sharing personal data. We will see if people trust the company with their money in the future given their track record. Postive side, Facebook can provide access to people around the world and at an affordable rate unlike any other company in the world. Cash is still primarily used in all transactions around the planet, 81-82%, and Bitcoin is $55,000 per coin. There is a problem to be solved there.
What Crypto will be used for daily transactions? We will see...
What started the Facebook Bitcoin rumor?
Rumors are circulating about Facebook inc potentially buying the worlds largest crypto currency Bitcoin.
Investor and CIO of the Atlanta Digital Currency Fund, Alistair Milne, sent out a tweet which started the chain reaction. Alistair word were,
"RUMOUR: Facebook will announce they hold #Bitcoin on their books when they release their quarterly results after trading closes tomorrow,"
It would not suprise me if Zuckerburg does announce BTC holdings in their earnings report. Diem is Facebook's second attempt into the crypto space, and they will be looking to do everything they can to gain market share from BTC.
TESLA just reported their company made 101 million dollars from their BTC holdings which makes Bitcoin an attractive alternative to cash.
What happened to Facebooks Libra Project?
Facebook's once popular Libra project failed due to immense regulatory pressure on project managers throughout the early days of creation. The main concerns with the project in 2019 were the currencies chosen to back the Libra currency. (Sterling, euro, & even the International monetary fund). Currencies must be accepted by all national banks.
Written by: Cameron Cole