What are the odds that the world’s biggest social network would acquire the world’s biggest cryptocurrency exchange? Well the short answer is, ‘No one can say for certain’ but there is a chance that it could happen sooner or later.
In June, British newspaper, The Independent reported that Facebook maybe planning to take over Coinbase, even as the social media giant announced that it has reversed its earlier decision to ban all cryptocurrency advertisements on its platform. In the same month, The Economist, in at least two separate reports, alluded that Facebook was interested in buying Coinbase.
Quite remarkably, neither of the two companies have issued official statements to confirm or deny the reports.
As we wait to see how the potentially high stake scenario would play out, Digital Coin News takes a look at some of the main reasons why Facebook may want to acquire Coinbase.
Facebook Maybe Looking to Launch its Own Coin
Blockchain is often described as the technology of the future. Experts say it would be the foundation of future technological progress in finance, security and internet connectivity. It is no secret that all the major tech giants including Facebook have been closely watching developments in the yet volatile industry with the aim of jumping in if and when the conditions are right.
And that right time may just be now, reports that Facebook was considering launching its own cryptocurrency emerged in May after it was announced that David Marcus, the company’s former head of Facebook Messenger and current board member of Coinbase was leading an exploratory blockchain team for the social network.
Establish a Foothold in Internet 3.0
In case you haven’t heard, the internet as we know it is about the change. Web 3.0 would run on blockchain technology, it would replace the current web 2.0 and change everything about how we access the internet, share and store information.
But more importantly, it would decentralize the web, take power out of the control of government and internet behemoths like Facebook and put it back in the hands of the user.
Facebook’s CEO Mark Zuckerberg was no doubt responding to the coming change when he wrote in January that; “One of the most interesting questions in technology right now is about centralization vs decentralization.
“With the rise of a small number of big tech companies… many people now believe technology only centralizes power rather than decentralizes it.”
Zuckerberg then hailed cryptocurrencies as a possible solution to the problem while promising that he was going to explore the emerging technology to figure how best to use it through Facebook’s platform.
Forget all the corny stories successful entrepreneurs tell us about why or how they started their business, the simple truth is every business or entrepreneur wants to make money – plenty of money and their entire operation is set up to do just that.
Facebook can put itself in a position to earn mega bucks for its founder and investors, by buying the largest coin exchange in the world, that way it would be acquiring a company with the assets and human capacity needed to succeed with blockchain technology.
Coinbase is currently valued at $8 billion. Just a year ago it was valued at $1 billion. The Exchange is by all indices a major player in the cryptocurrency market that is according to some estimates worth about $700 billion.
And while there is so much activity within the cryptocurrency/blockchain space, the market is still in its infancy with the potentials to reach untold heights.