[2014-05-19] Winklevoss Bros: Bitcoin Will be Bigger than Facebook

[_smudger_]

https://coinreport.net/winklevoss-bitcoin-will-be-bigger-than-facebook/

[bryant.coleman]

I don't know whether Bitcoin will grow bigger than FaceBook in the future. But I can say with confidence that Facebook will be forced to use / integrate Bitcoins to its interface. 

[devphp]

I don't know whether Bitcoin will grow bigger than FaceBook in the future. But I can say with confidence that Facebook will be forced to use / integrate Bitcoins to its interface. 

I wouldn't be so sure.

Imagine you're the one who makes decisions at Facebook and what currency to integrate.

You have choices:

1) invent your own tokens (centralized solution) and have people exchange fiat for them - this is most likely to happen.

2) you're enthusiastic about crypto currencies and think it is the future, but you got late on that train and don't have many bitcoins, what would you do as the one who makes decisions at Facebook? Of course, adopt some other crypto currency, which is now strongly undervalued compared to Bitcoin, as the currency of Facebook. But before you announce this, you buy into it big time, because you know, it will multiply in value after that. This solution is 100% decentralized and you yourself (and company  too) get rich implementing it. You can buy a big chunk of some undervalued but big enough crypto for cheap and multiply your fortune overnight. Hashrate and mining network of that crypto would explode after that too, so no issues with security of the network.

3) adopt Bitcoin - very unlikely, you get less benefits from this choice than option #2.

[erono]

No currency will overtakes bitcoin,  facebook's servers don't enter into their equation, but their customer base surely does.

[freedomno1]

Well the Winklevoss twins as the movie reveals do hold a grudge from the facebook days.
The twins introduction to bitcoin occurred soon after legal battles against Facebook founder Mark Zuckerberg. The brothers won $65 million in a settlement, after Zuckerberg was accused of stealing their social media idea.
That said Bitcoin and facebook are separate but both have large potential, that said facebook does have an app for that
http://www.telegraph.co.uk/finance/personalfinance/borrowing/loans/10616678/Agree-It-app-Now-you-can-be-a-payday-lender-to-Facebook-friends.html
So interesting stuff since both work on bringing people to interact with one another through peer-to-peer networking, and so both have their utilities.

[Chef Ramsay]

Quite the bullish breakout over the last few hours, mates! Let's see if it holds and our eastern homies run w/ it by the time we get up. Until then, enjoy https://www.youtube.com/watch?v=my6bfA14vMQ

[bryant.coleman]

2) you're enthusiastic about crypto currencies and think it is the future, but you got late on that train and don't have many bitcoins, what would you do as the one who makes decisions at Facebook? Of course, adopt some other crypto currency, which is now strongly undervalued compared to Bitcoin, as the currency of Facebook. But before you announce this, you buy into it big time, because you know, it will multiply in value after that. This solution is 100% decentralized and you yourself (and company  too) get rich implementing it. You can buy a big chunk of some undervalued but big enough crypto for cheap and multiply your fortune overnight. Hashrate and mining network of that crypto would explode after that too, so no issues with security of the network.

I wouldn't go for this option. If you chose some worthless altcoin over Bitcoin, then in case the adoption fails, you will be left with nothing. And moreover, people would be hesitant to use altcoins in the first place, as they don't have the reputation which Bitcoin possess.

[devphp]

I wouldn't go for this option. If you chose some worthless altcoin over Bitcoin, then in case the adoption fails, you will be left with nothing. And moreover, people would be hesitant to use altcoins in the first place, as they don't have the reputation which Bitcoin possess.

The adoption of any particular altcoin would multiply several fold if it's adoped by Facebook as currency of choice. They have millions of users, I don't see how adoption can fail. Just ask yourself. If tomorrow there is an official annoucement that Facebook starts using X altcoin as its own currency, wouldn't you buy it? I would buy both hands, and I don't even use Facebook. Not to mention millions of users of Facebook, who would be buying it to conduct their Facebook business. With huge adoption comes high prices and strong mining network. Seems like a no brainer. But I think, the most likely scenario is Facebook will not use any crypto currency, they'll just use their own centralized tokens, purchased for fiat.

[Bit_Happy]

Quite the bullish breakout over the last few hours, mates! Let's see if it holds and our eastern homies run w/ it by the time we get up. Until then, enjoy https://www.youtube.com/watch?v=my6bfA14vMQ

I wondered how long the market could go without reacting to all the good news:
Bitstamp just recently made a new high for the month of May.
It's hard to tell if the medium-term trend is "verified" up, but it looks good for now.

[bryant.coleman]

They have millions of users, I don't see how adoption can fail. Just ask yourself.

If Facebook goes for Bitcoin, then it is justifiable. But why should they go for any altcoin? None of the altcoins have any merits over Bitcoin. Why chose some counterfeits when the original is available?

[devphp]

If Facebook goes for Bitcoin, then it is justifiable. But why should they go for any altcoin? None of the altcoins have any merits over Bitcoin. Why chose some counterfeits when the original is available?

There is no counterfeits here, copies - yes, not counterfeits. It's all a huge illusion that Bitcoin has merits over others. The more the illusion, the more value it has in people's eyes. I outlined above why someone who makes decisions at Facebook would want to go for something undervalued. It would be killing two birds with one stone basically for Facebook, which is much harder to do with bitcoin. Someone who makes decisions at that company could overnight create an illusion of value in any of the altcoins just by making it a crypto of choice for Facebook's millions of users worldwide.

But like I said they'd probably go for their own flavor of tokens, crypto - they can't control, at least not Bitcoin. Some other undervalued alt - that would be feasible and easier to control and own a huge chunk of. Not possible with Bitcoin. Possible with tokens. Alts are somewhere in between.

[bryant.coleman]

I outlined above why someone who makes decisions at Facebook would want to go for something undervalued.

For Bitcoin, the infrastructure is in place. Exchanges, online retailers.etc. So Facebook won't have to do anything extra. That is not the case with shit-coins. They are not accepted in most of the exchanges and their trade volume is extremely low.

[ranlo]

I outlined above why someone who makes decisions at Facebook would want to go for something undervalued.

For Bitcoin, the infrastructure is in place. Exchanges, online retailers.etc. So Facebook won't have to do anything extra. That is not the case with shit-coins. They are not accepted in most of the exchanges and their trade volume is extremely low.

This is a huge part of why Bitcoin is going to be far ahead of the rest for the time being. The other way to look at it, though, is that any service that accepts Bitcoin could just as easily swap to any other coin since they are all essentially the same (in terms of transfers).

[devphp]

For Bitcoin, the infrastructure is in place. Exchanges, online retailers.etc. So Facebook won't have to do anything extra. That is not the case with shit-coins. They are not accepted in most of the exchanges and their trade volume is extremely low.

Facebook users don't need much infrastructure. If the sole purpose of them using a crypto currency is to buy some Facebook services (I have no idea what those might be, I don't use it), then Facebook can set up its own fiat->crypto gateway. Of course Facebook would first buy that crypto cheap off exchanges and then sell at a premium to users. At least that's the most sensible business approach. Your calling altcoins 'shitcoins' doesn't achieve anything, except demonstrates your extreme bias. Objectivity is what successful investors have to possess not to lose money. And I am sure Facebook decision makers don't lack objectivity.

Oh, and most exchanges offer altcoins trading, I don't know if you've been living under a rock recently or what. I mean, altcoin trading is everywhere. But Facebook users wouldn't have to use any exchange to get the coins if Facebook went the crypto route. You see, big companies and people behind them are all after control and power. If they see an opportunity to control and exert power, they'll use it. They can't control Bitcoin, or, let me put it this way, controlling Bitcoin would require huge capital investments. Why all that hassle if Facebook can pay a little and achieve the same and make big dividends for their share holders in the process and quick buck for their own executives.

[turvarya]

I wouldn't go for this option. If you chose some worthless altcoin over Bitcoin, then in case the adoption fails, you will be left with nothing. And moreover, people would be hesitant to use altcoins in the first place, as they don't have the reputation which Bitcoin possess.

The adoption of any particular altcoin would multiply several fold if it's adoped by Facebook as currency of choice. They have millions of users, I don't see how adoption can fail. Just ask yourself. If tomorrow there is an official annoucement that Facebook starts using X altcoin as its own currency, wouldn't you buy it? I would buy both hands, and I don't even use Facebook. Not to mention millions of users of Facebook, who would be buying it to conduct their Facebook business. With huge adoption comes high prices and strong mining network. Seems like a no brainer. But I think, the most likely scenario is Facebook will not use any crypto currency, they'll just use their own centralized tokens, purchased for fiat.

Sure, the Price of the Chosen altcoin would go up in the short-term, but that doesn't say much about the Long-term. If the purpose of an altcoin is just to use it on Facebook, why would anybody use it? There is already Facebook-Money(I even saw giftcards in a grocery store, besides giftcards for Amazon)

[indiemax]

For Bitcoin, the infrastructure is in place. Exchanges, online retailers.etc. So Facebook won't have to do anything extra. That is not the case with shit-coins. They are not accepted in most of the exchanges and their trade volume is extremely low.

Facebook users don't need much infrastructure. If the sole purpose of them using a crypto currency is to buy some Facebook services (I have no idea what those might be, I don't use it), then Facebook can set up its own fiat->crypto gateway. Of course Facebook would first buy that crypto cheap off exchanges and then sell at a premium to users. At least that's the most sensible business approach. Your calling altcoins 'shitcoins' doesn't achieve anything, except demonstrates your extreme bias. Objectivity is what successful investors have to possess not to lose money. And I am sure Facebook decision makers don't lack objectivity.

Oh, and most exchanges offer altcoins trading, I don't know if you've been living under a rock recently or what. I mean, altcoin trading is everywhere. But Facebook users wouldn't have to use any exchange to get the coins if Facebook went the crypto route. You see, big companies and people behind them are all after control and power. If they see an opportunity to control and exert power, they'll use it. They can't control Bitcoin, or, let me put it this way, controlling Bitcoin would require huge capital investments. Why all that hassle if Facebook can pay a little and achieve the same and make big dividends for their share holders in the process and quick buck for their own executives.

Go pile into altcoins then ,hope you get lucky

The Bitcoin infrastructure is vital,as any coin being selected for any major adoption will require to have proven over time it's interactions,it's all about networking my friend. No alt will be selected by any merchant before Bitcoin  for those very reasons,too much negative risk and the savvy marketing guys know that. They aren't going for broke on the belief a shity alt will make them rich,they are after more use of their service and the more integration of other networks will bring them the rewards. That will make the the company profits,not a get rich scheme of buying up alt coins, You misunderstand how unprofessional that would be to a company like Facebook

[ranlo]

I wouldn't go for this option. If you chose some worthless altcoin over Bitcoin, then in case the adoption fails, you will be left with nothing. And moreover, people would be hesitant to use altcoins in the first place, as they don't have the reputation which Bitcoin possess.

The adoption of any particular altcoin would multiply several fold if it's adoped by Facebook as currency of choice. They have millions of users, I don't see how adoption can fail. Just ask yourself. If tomorrow there is an official annoucement that Facebook starts using X altcoin as its own currency, wouldn't you buy it? I would buy both hands, and I don't even use Facebook. Not to mention millions of users of Facebook, who would be buying it to conduct their Facebook business. With huge adoption comes high prices and strong mining network. Seems like a no brainer. But I think, the most likely scenario is Facebook will not use any crypto currency, they'll just use their own centralized tokens, purchased for fiat.

Sure, the Price of the Chosen altcoin would go up in the short-term, but that doesn't say much about the Long-term. If the purpose of an altcoin is just to use it on Facebook, why would anybody use it? There is already Facebook-Money(I even saw giftcards in a grocery store, besides giftcards for Amazon)

Not only this, but why would Facebook even take it? They have their own form of money already. The only way they'd think about things like altcoins is if there is enough benefit to them. And then why not just launch their own altcoin?

[devphp]

Sure, the Price of the Chosen altcoin would go up in the short-term, but that doesn't say much about the Long-term. If the purpose of an altcoin is just to use it on Facebook, why would anybody use it? There is already Facebook-Money(I even saw giftcards in a grocery store, besides giftcards for Amazon)

Bitcoin is not a sure thing long term either if you think rationally.

Oh, Facebook already has their own money? I had no idea. Why would it need any crypto? Like I said the most likely approach for them is to issue their own tokens, which they already did, you say. Case closed.

Not only this, but why would Facebook even take it? They have their own form of money already. The only way they'd think about things like altcoins is if there is enough benefit to them. And then why not just launch their own altcoin?

Exactly. I don't follow Facebook and didn't know they already had their own tokens. They don't need crypto currencies to make maximum profit from their userbase. Crypto currencies wouldn't make any difference for them, bitcoin or alts.

[devphp]

Go pile into altcoins then ,hope you get lucky

The Bitcoin infrastructure is vital,as any coin being selected for any major adoption will require to have proven over time it's interactions,it's all about networking my friend. No alt will be selected by any merchant before Bitcoin  for those very reasons,too much negative risk and the savvy marketing guys know that. They aren't going for broke on the belief a shity alt will make them rich,they are after more use of their service and the more integration of other networks will bring them the rewards. That will make the the company profits,not a get rich scheme of buying up alt coins, You misunderstand how unprofessional that would be to a company like Facebook

Here is my approach to crypto investing

I don't pile into one single anything, I prefer to diversify.

Accepting any alt for a merchant is no harder than accepting bitcoin with companies like coinpayments and moolah that make it easy to accept several different cryptos and convert them to fiat for a merchant on the fly. Merchants need fiat to pay their suppliers and employees.

[turvarya]

I wouldn't go for this option. If you chose some worthless altcoin over Bitcoin, then in case the adoption fails, you will be left with nothing. And moreover, people would be hesitant to use altcoins in the first place, as they don't have the reputation which Bitcoin possess.

The adoption of any particular altcoin would multiply several fold if it's adoped by Facebook as currency of choice. They have millions of users, I don't see how adoption can fail. Just ask yourself. If tomorrow there is an official annoucement that Facebook starts using X altcoin as its own currency, wouldn't you buy it? I would buy both hands, and I don't even use Facebook. Not to mention millions of users of Facebook, who would be buying it to conduct their Facebook business. With huge adoption comes high prices and strong mining network. Seems like a no brainer. But I think, the most likely scenario is Facebook will not use any crypto currency, they'll just use their own centralized tokens, purchased for fiat.

Sure, the Price of the Chosen altcoin would go up in the short-term, but that doesn't say much about the Long-term. If the purpose of an altcoin is just to use it on Facebook, why would anybody use it? There is already Facebook-Money(I even saw giftcards in a grocery store, besides giftcards for Amazon)

Not only this, but why would Facebook even take it? They have their own form of money already. The only way they'd think about things like altcoins is if there is enough benefit to them. And then why not just launch their own altcoin?

I don't think, that a cryptocurrency from a big international Company would have much success. The whole Point of cryptocurrency is to take Money out of the control of single entities. If a big Company launches an altcoin they might  put a backdoor somewhere in the code. I wouldn't trust them, and with all the NSA-stuff currently going on, I am for sure not the only one, who thinks so.