[2019-03-08] Facebook data dividend model by using issued coins as payment

[bbc.reporter]

I reckon Facebook's democratized user dividend business model might become one of the cryptospace's biggest successes since the creation of the first democratized direct initial public offering, also known as the ICO hehehe.

In any case, the interest should not be on Facebook's stablecoin. I speculate that the interest should be on which platform will it be issued? Ethereum, EOS, Tron, Stellar, NEM, Waves or something else? What platform will hit the jackpot hehehehe?



A few months back, reports surfaced that Facebook was creating a cryptocurrency for its WhatsApp platform. This project is being overseen by David Marcus, the former president of PayPal.

The crypto being developed is a stablecoin, which will likely be tied to the dollar or euro. A stablecoin is a smart choice as it negates the volatility often associated with the cryptocurrency marketplace. The Facebook cryptocurrency is reportedly going to be rolled out in India on WhatsApp as that the country boasts 200 million users of the app.

Speculation is now suggesting that the stablecoin will be used across the full spectrum of Facebook products: WhatsApp, Facebook Messenger, and Instagram. If so, this would be tremendous for crypto adoption as over 2.7 billion people use such platforms on a monthly basis. Even more intriguing is the idea of a “data dividend” that could be paid to users.

A recent article from Fortune discusses the benefits of Facebook paying users a “data dividend” via the platform’s stablecoin. This dividend would be derived from the monetary value generated by the social media platform as people use it and advertisers fork over cash for advertising or for the data generated.

Facebook generated revenue of $55.838 billion in 2018 alone. The average user of the platform does not get any cut of that financial pie despite the fact it’s their use of the platform that creates the revenue. The Fortune article suggests that a good way to ensure that people remain loyal to Facebook and continue to use it on a regular basis is to get a payout in virtual cash.

Read in full https://bitcoinerx.com/altcoin/could-facebook-eventually-pay-users-a-data-dividend-using-cryptocurrency/

Read the related article http://fortune.com/2019/03/06/facebook-cryptocurrency-whatsapp-messenger-instagram-data-dividend/

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[buwaytress]

So, Facebook stock prices don't seem to have been affected (down about 1 % in 24 hours, but climbing back up) so this seems to me to be two things. The first, nobody believes Zuckerberg's model is anything more than penance for his actions and he's only doing it because he was caught, so they're not buying into it. Or, it could mean that the people actually owning Facebook (stockholders) don't believe in it. Either way, the news causing little impact means no one who has a stake in FB, subjectively or literally, cares.

[bbc.reporter]

@buwaytress. It might also be hype clickbait speculations created by the bitcoin news media. Was there already an official announcement or a hehe, roadmap from Facebook? There is none, I reckon.

[joniboini]

I keep wondering what would happen if Facebook was never caught in the first place. They'll probably keep using user data as they wish and people would never get any financial benefits on return. In fact, I think data privacy awareness is still very low on some countries. They'd gladly love to send their private data just because they wanted to see what their friends uploaded. Social media is really scary sometimes.

[milewilda]

No doubt it's centralized coins, just like USDT and JPMCoin which are also stable coins

But it's not good way to solve Facebook's privacy problem, they should use subscribe/paid model where your data won't be shared to 3rd party/used for advertising OR option to delete user's account along with it's data on 3rd party.

Bolded part.  It would be much more appealing if they would focus or consider to look at that scenario yet most people do really cares about privacy and i would much really preferred with this option.
About on the coin im even 101% sure that this would really be like those shit stable coins. Why included JPMCoin? lol

[1Referee]

But it's not good way to solve Facebook's privacy problem, they should use subscribe/paid model where your data won't be shared to 3rd party/used for advertising OR option to delete user's account along with it's data on 3rd party.

Facebook doesn't want to solve anything related to people's privacy. It's money in their bank to have people's info be sold to whatever party willing to pay for it. In other words, Facebook has all the incentive they need to not give people any tools to have better privacy management.

The best way to deal with this situation is to have your Facebook account deleted. Sure, they will very likely have your info still, but that's only up to a certain time frame. I have never registered myself on Facebook's platform, and never will. It feels good knowing that they haven't made a penny selling my preferences for food, traveling, etc.

These fuckers sell your info to insurance companies that will very likely treat you differently based on your lifestyle. No thank you.

[bbc.reporter]

No doubt it's centralized coins, just like USDT and JPMCoin which are also stable coins

But it's not good way to solve Facebook's privacy problem, they should use subscribe/paid model where your data won't be shared to 3rd party/used for advertising OR option to delete user's account along with it's data on 3rd party.

Bolded part.  It would be much more appealing if they would focus or consider to look at that scenario yet most people do really cares about privacy and i would much really preferred with this option.
About on the coin im even 101% sure that this would really be like those shit stable coins. Why included JPMCoin? lol

Agreed. Also, the interest of altcoin punters should be in speculating in what platform will Facebook use to issue their stablecoin. It might be Ethereum or Stellar, I reckon, not one of the Chinese or Russian platforms.

[d5000]

Does it really make sense for Facebook to create a cryptocurrency for that? I think not.

If they create one with an own set of miners or validators (e.g. like Ripple) then they have to invest a lot in infrastructure, because blockchains are normally less efficient than centralized "non-blockchain" currencies.

If they create the coin on another platform - e.g. Ethereum, EOS or even a Bitcoin-based platform like Omni or Counterparty - then they don't have this problem, but they would have to pay gas/transaction fees for every little "data dividend".

In my opinion it would make more sense for them to create a centralized payment system like PayPal or PerfectMoney. The only reason to really use blockchain tech could be to profit from a "blockchain hype", but imo the blockchain hype (where everything with a "blockchain" was FOMOed hard) is already gone.

[vit05]

I think this is a very difficult speculation to believe. It does not seem to be the intention of facebook to remunerate the user by the use, and there are several studies criticizing the platform's addictive appeal. Probably more organizations would push in that direction. And their main challenge is to reduce the spam. And the currency would have as its main platform WhatsApp. There are some rumors that the great intention of Facebook is to end the newsFeed and focus on Chat. So, It seems to be clearly an intention to compete with WeChat.

WeChat is China's leading buying and selling tool right now. Facebook wants its Chat tools (WhatsApp) to achieve the same, in a global way, using blockchain.

[bbc.reporter]

Similar to Facebook, I speculate that all the biggest banks also want to issue their own coin.

In any case, is this a slight signal for how can we make a profit with you, let us talk made to Ethereum, EOS, Tron, Stellar, NEM, Waves, Ripple and other similar platforms advertised by Citibank?

I reckon it appears that way. Who will be the lucky winner hehehe?



Citibank Won’t Be Launching Its Own “Citicoin”, Will Use Existing Technologies Instead, Will They Turn To Ripple’s XRP Or SWIFT?

Blockchain has been championed as a solution to the high fees and slow nature of cross border payments. Many institutions have signed on to begin using Ripple as a way to solve these issues, but it seems Citi is not quite ready to believe in the technology.

When it comes to blockchain and cryptocurrency these huge financial institutions seem to talk out of both sides of their mouth. JP Morgan executives bashed Bitcoin and other cryptocurrencies only to adopt the technology later. Now while Citi is backing off, they also admit to continuing to look into blockchain solutions ‘like (Ripple/XRP)’.

Atak warned that many businesses are trying to force the integration of blockchain because it’s a hot topic right now. But she admitted that Citi is still exploring blockchain and all of its applications so we may yet see a Citicoin down the road.

Read in full https://zycrypto.com/citi-wont-be-launching-its-own-citicoin-will-use-existing-technologies-instead/

[bbc.reporter]

Will Facebook become the biggest financial issuer of a dollar pegged stablecoin and become the Federal Reserve of the internet? I reckon it might if it gets the support of the big American banks, those same banks that helped create the Federal Reserve itself.



There is a schism in the cryptocurrency community concerning Facebook’s foray into crypto. While some think that Facebook undermines Satoshi Nakamoto’s vision of a decentralized cryptocurrency, prominent influencers, including Mike Novogratz and Anthony Pompliano, look at the bright side.

On the flip side, major Wall Street players seem to agree that Facebook’s stock will see plenty of love once the company unveils its much-talked-about crypto project.

SunTrust, MoffettNathanson, Bank of America stick with a “buy” rating on Facebook.

MoffettNathanson goes as far as claiming that the Mark Zuckerberg-led company aims to become the biggest e-commerce platform on the planet.

"We believe a Facebook cryptocurrency-based payments system could be especially useful in countries with high inflation/unstable banking systems and for cross-country remittances. So, Facebook’s commerce ambitions do not appear to be limited to developed markets. Rather, Facebook has its eyes set on becoming the world’s leading ecommerce platform as well.”

Source https://u.today/wall-street-is-extremely-bullish-on-facebooks-cryptocurrency

[joniboini]

Will Facebook become the biggest financial issuer of a dollar pegged stablecoin and become the Federal Reserve of the internet? I reckon it might if it gets the support of the big American banks, those same banks that helped create the Federal Reserve itself.

The only thing that could stop that from happening is if there's no user or only a few people use it, which I doubt will ever happen.

Sad to see that Facebook domination is too great when you need a trustless system for the global economy to work.

[bbc.reporter]

@joniboini. I doubt it will not have users. Facebook's Libra might be what Ripple or Stellar want to be. To bank the unbanked in 3rd world countries. Facebook will succeed in where Ripple and Stellar has failed because it has already built the infrastructure to connect people together first and scaled it.