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Facebook Coin Could Bring $19 Billion Extra Revenue
Facebook’s cryptocurrency could bring $19 Billion additional revenue for the social media firm by 2021 if everything works out as projected, Barclay has projected.
Few weeks back, Today’s Gazette hinted that the number social media platform is planning to launch a digital asset that will service users of Facebook, Whatsapp and Instagram.
As published by CNBC, an analysis by Barclays internet analyst Ross Sandler on Monday forecasted that nothing less than $19 billion in supplementary proceeds could come from “Facebook Coin” in his upside case.
Also, the company believes there may be a base-case of an increased $3 billion in proceed all things being equal. In the same line, Facebook Coin is making Barclays change its story about Facebook shares.
Read: New York Times report on Facebook and Bitcoin generates negative reactions.
With the help of FB Coin, Facebook could have more revenue source which is “sorely needed at this stage of the company’s narrative,” the Barclays analyst added.
“Any attempt to build out revenue streams outside of advertising, especially those that don’t abuse user privacy are likely to be well-received by Facebook’s shareholders.”
The revenue summation by Barclays stands on what Google’s digital distribution service Google Play is generating at the moment. The platform generates $6 in “net” income/user at the moment. The same could happen to Facebook, a platform that has close to 3 billion users.
The analyst digressed that FB Coin may be a single-purpose digital asset similar to Venmo and some othe digital assets today.
“Based on our checks, the first version of Facebook Coin may be a single purpose coin for micro-payments and domestic p2p money transfer (in-country), very similar to the original credits from 2010 and Venmo today.”
Last year Facebook co-founder Mark Zuckerberg said it plan to solve glitches encountered in the cryptocurrency space. The social media multi-billionaire believes security issues and scalability are part of the problems driving people away from the crypto space.
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