- Telecommunications Giant Vodafone Leaves the Libra Association
- Group of Central Banks Assesses Developing Central Bank Digital Currencies
- South Korea Might Impose 20 Percent Tax on Cryptocurrency Profits
- Report: Terrorists Increasingly Use Crypto to Raise Funds Anonymously
- Canadian Securities Administrators Subject Crypto Exchanges to Securities Laws
As the hype of the much anticipated Facebook Globalcoin keeps getting intense and the launch preparation continues behind the scenes, some notable details about the social network’s virtual coin also continue to trickle out.
As usual, the two different extremes of critics have given their take, with one side warning against its impending dangers due to the recent data breach, and the extreme positive on the other side that posits that the second time is the charm.
New study’s details came out recently, focusing on the demographic challenges awaiting Facebook Globalcoin. Sure it is dubbed Globalcoin because it is supposed to be used globally, but how many people still use the social media platform globally? Another very important question is the percentage of teens in the global user base. These and more were considered in a recent report by Diar titled Demographic Challenges for Facebook ‘Cryptocurrency.’
According to the report, this may be the beginning of the end for Facebook. The world is yet to get over the shocking data breach by Cambridge Analytica which occurred last year. Although Facebook’s boss, Mark Zuckerberg, has been reportedly consulting with several people on the matter (including the US Treasury, Western Union, the Bank of England, and crypto exchanges such as Gemini and Coinbase), many still believe that the digital coin is going to face a bumpy ride once launched.
For starters, the social media giant has lost hold on a great percentage of the teen market. The report shows that only 50% of US teens currently use Facebook as the US sits at the number two position of its biggest market, with India being the first. From the stats, teens contribute only 5% of Facebook global customer base. And of this meager percentage, a greater percentage of these teens are lower-income teens. What could they need the new virtual coin for?
The percentage of teens in its global customer base is of high importance because the concept of cryptocurrency is better understood by millennials who are a more tech-savvy generation. Therefore, it will be disastrous to introduce cryptocurrency to a platform filled with old, retired members.
Educating about 25% of the world’s population about cryptocurrency doesn’t seem feasible either. Pushing through with it may result in loss of funds and near instant failure of the crypto project. It would be a whole different ball game if cryptocurrency were a concept that everyone – both old and young – have grown accustomed to.
Whatever the case may be, we hope Zuckerberg is prepared for all eventualities. We will be here to update you as soon as new reports come out.