On May 28, 2019, cryptocurrency analytics firm Diar published a report that paints a rather gloomy picture of the fate of Facebook’s payment-focused cryptocurrency GlobalCoin. According to the report, the social media website’s user demographics could prove to be a huge challenge to GlobalCoin’s mainstream adoption.
GlobalCoin Is a Payment-Focused Cryptocurrency
Facebook’s foray into the cryptocurrency space recently received mainstream media attention when the BBC gave details on its yet-to-be-launched crypto token called GlobalCoin.
Per sources in the know, the social media behemoth is expected to launch the digital token in 2020 with their first target market being India despite the country’s less than encouraging cryptocurrency regulations.
The company’s commitment towards its pet project GlobalCoin reflects in its round-the-clock work to ensure the availability of necessary infrastructure for its eventual launch. Be it secretly setting up a fintech firm in Geneva, Switzerland, or Mark Zuckerberg’s meeting with the once-estranged Harvard batchmates, the Winklevoss twins, Facebook is leaving nothing to chance that could potentially hinder the rise of GlobalCoin as a viable means of payment.
However, data gathered by Pew Research Center posits that rather than external factors, it’s Facebook’s own yard that could spell disaster for GlobalCoin.
Facebook’s User Base Demographics Pose a Formidable Challenge
The research states that the website’s aging user base with close to nil knowledge of cryptocurrencies could tremendously pour water over its ambitious crypto plans.
The platform’s continually thinning teen user base is also a cause for concern. The report adds that even though a small chunk of Facebook’s young user base might be aware of the nitty-gritty of digital currencies, their fairly weak economic conditions and purchasing power could be one of the reasons for the project’s eventual demise. The report reads in part:
“Lower-income teens are far more likely than those from higher-income households to say Facebook is the online platform they use most often.”
Further, educating the masses – roughly 25 percent of the world’s population – about the current cryptocurrency ecosystem that includes a basic idea about securely storing private-keys could prove to be a herculean task for the blue and white social media giant.
With that said, it would be preposterous to fully dismiss Facebook’s cryptocurrency project. The tech think-tank at Facebook comprises of some of the best computer engineers from around the world whose contributions have been instrumental in transforming the company into the technology juggernaut it is today.
Only time will tell whether GlobalCoin truly goes global or ends up being just an overly-ambitious idea which failed to take-off beyond the four walls of Facebook headquarters.