Max Keiser, a well-known Bitcoin expert, has predicted that Ripple and a majority of other digital currencies will be destroyed by GlobalCoin, the yet-to-be-launched cryptocurrency by the social network giant Facebook. However, the only crypto which will survive will be Bitcoin, believes Keiser strongly.
Continuing further, Keiser stated that while GlobalCoin will make altcoins irrelevant, it will eventually boost the prices of Bitcoin to a considerable extent. That’s because Bitcoin doesn’t compete with fiat currency but gold. Moreover, the entities involved in remittance and payments to leveraging digital currencies will also be annihilated.
Keiser expressed these strong opinions through his micro-blogging handle on 7th June 2019.
The $FB global stable coin… FaceCoin obviates need for hundreds of alt-cons including XRP. The alt-coin apocalypse is nigh. This will drive Bitcoin higher, as BTC competes with Gold, not fiat. (Also, crypto ‘payments’ companies likely to wiped out). https://t.co/w38jmtn7RN
— Max Keiser, tweet poet. (@maxkeiser) June 7, 2019
How Facebook’s Coin will help Bitcoin but destroy XRP:
GlobalCoin has created a buzz ever since its announcement. The plus point about Facebook’s crypto, as said by the company, is that its purpose is to offer hassle-free peer-to-peer payment services as well as other microtransactions.
That would directly place Facebook’s coin in competition with altcoins such as LTC (Litecoin) and Ripple’s crypto XRP. Both of these cryptos are renowned for their offering of cheap and quick transactions. Other than Ripple and Litecoin, this niche is also claimed by companies like BitPay, which is into cryptocurrency-based payments.
In addition, the recent revelation by Facebook that they are going to peg its crypto GlobalCoin to more than one currency without solely focusing on the United States Dollars will also make the road a bit tougher for altcoins.
The plan Facebook has in mind:
Apparently, Facebook is going to specifically target developing nations which have domestic currencies of volatile nature. Zimbabwe or Venezuela, for instance. Additionally, there is also a buzz that the company’s crypto would be made available through Messenger and WhatsApp as well other than its primary social platform.
The reason for targeting developing nations is probably to boost the company’s profits in some of the world’s poorer regions which despite having an increasingly rising user base experience low ARPU, short for average revenue per user. Also, the developing nations offer more growth opportunities in terms of remittances and payments due to the relatively underdeveloped economy.
It must be noted here that Facebook had already launched its p2p payment function in its Messenger, which is considered a flop, particularly in Europe. Buzz has it that the company is about to draw curtains on this particular service in the UK as well as in France.
Facebook will be releasing its anticipated GlobalCoin in 2020.