Cryptocurrency

New York Times report on Facebook and Bitcoin generates negative reactions.

Skepticism and discord is what has generated a report dated February 28, 2019 by the great American newspaper The Ne York Times entitled “Facebook and Telegram hope to succeed where Bitcoin fails”; of which the crypto community has made it known that the cryptocurrency of both platforms will not be able to unseat Bitcoin as the report implies.

As announced by Facebook and Telegram, two giants of social networks have climbed the cryptocurrency train with plans to introduce it to its billions of users. According to the American newspaper, Bitcoin has failed and therefore Facebook will succeed with its own currency.

However, the crypto community has made it clear that the adoption of Bitcoin is increasing thanks to new use cases such as Lightning Network and Sidechains, which are emerging. On the other hand specialists in the field indicate that the expected altcoins of the two social network companies are designed for purposes clearly different from those of Bitcoin, in addition to being centralized as the case of Ripple with its XRP token.

The newspaper alleges that the cryptocoins that Facebook and Telegram are developing will introduce traditional consumers to the alternative world of digital currencies. This may be true, but remember that this was never the purpose of Bitcoin.

Bitcoin was born as an anarchic system of financial freedom against the traditional systems of large banks and centralized corporations. On the other hand, Facebook, according to the newspaper, says it works in secret and that the employees interviewed can not give greater details for a confidentiality agreement. What puts in the arena the lack of ‘transparency and decentralization’ that characterize its counterpart to Bitcoin.

However, these companies “seem to be working on digital currencies that could exist in a decentralized network of computers, but to a certain extent under the control of companies,” the main feature of failure to dethrone Bitcoin.

This means that FaceCoin, neither the cryptocurrency of Telegram nor that of JP Morgan, will be able to achieve the total independence of any centralized entity. The tokens by effect of these companies will be planned centrally and their offer will not be limited nor a neutral monetary system of open access.

It is not known if the Blockchain of these coins will be public but, given the secrets of the Facebook and Telegram projects, it seems unlikely. For this and many other reasons, Facebook can never succeed where Bitcoin has failed, because Bitcoin simply has not failed.

What has led to the fact that the article published by the newspaper has a great rejection from the cryptographic community and many in social networks and slackware channels have already shown the possibility of a propaganda use for marketing purposes by the giants of social networks to generate false expectations around their altcoins.

At the moment, it remains to wait for the time or not the reason for the future of Facebook and Telegram with their cryptocurrencies and their possible success in case uses, given the large number of users that add up between the companies.

Disclaimer: Our writers invest in cryptocurrencies and it is possible the author of this article has investment in any of the digital currencies discussed. Some times author's presented information may be laced with opinions. Treat articles as mere information and not as financial advice.

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Esme Anderson

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  • Not to mention that it still has a ban on any crypto related paid advertising on the site. Yes, they did come out with a press release stating that they have relaxed the guidelines, but ask anyone (myself included) who have tried to pay to advertise a crypto related site/business and get declined by Facebook.

    Isn’t this monopolising and illegal?