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Bitcoin expert Max Keiser has said that XRP and other digital currencies will be destroyed by GlobalCoin, the yet-to-be-launched cryptocurrency by the social network giant Facebook. The only one who will survive, thinks Keiser, will be Bitcoin.
Can Facebook’s GlobalCoin present a major threat to XRP and other cryptocurrencies?
Bitcoin expert Max Keiser thinks it can. He tweeted:
The $FB global stable coin… FaceCoin obviates need for hundreds of alt-cons including XRP. The alt-coin apocalypse is nigh. This will drive Bitcoin higher, as BTC competes with Gold, not fiat. (Also, crypto ‘payments’ companies likely to wiped out). https://t.co/w38jmtn7RN
— Max Keiser, Sr. Bitcoin Adv. to Pres. Bukele 🇸🇻 (@maxkeiser) June 7, 2019
He thinks that GlobalCoin will render altcoins irrelevant and sees the Facebook coin obliterating payments and remittance companies leveraging cryptocurrencies. The only one who will survive this – will be Bitcoin.
GlobalCoin has created a thrill since its announced. The company said that one of the best things is the possibility of this coin to offer hassle-free peer-to-peer payment services as well as other microtransactions.
That means that Facebook’s coin will stand in competition with Litecoin and XRP offering the cheap and quick transactions.
With Keiser agrees Charlie Shrem, founder of Bitcoin Foundation who stated that the social media giant intends to make companies pay 10 million dollars, in order to certify them as validators. According to him, this alone is enough to render Ripple ineffective.
“Facebook is launching their global crypto coin called “Libra”. What’s interesting is they are offering companies to pay $10m to become “validators”. If anything, it renders Ripple useless. The first companies to create a LIBRA/BITCOIN exchange will make a killing!”
José Maria Macedo, Head of Advisory at blockchain advisory firm, AmaZix, on the other hand thinks that through Facebook and Whatsapp, potentially hundreds of millions of people will use GlobalCoin.
“It has the potential to be bigger than the US dollar in terms of numbers of users.”
With him agrees senior market analyst at eToro Mati Greenspan who tweeted:
Facebook coin isn't a competitor to Bitcoin, it's a competitor to the Dollar.
— Mati Greenspan (@MatiGreenspan) June 9, 2019
There is however one solution that makes all options irrelevant.
Oliver Woodhouse, a financial services regulatory lawyer at Capital Law, says that we should look at this as an opportunity to introduce billions of people to innovative and emerging technology that has the potential to revolutionize the payment and remittance market.
Woodhouse is saying that this will mean a significant think for “unbanked” areas of the world, where individuals may not be able to open a bank account, but otherwise have internet access and a social media account. Also, there are rumors that Facebook is going to specifically target developing nations which have domestic currencies of volatile nature like Zimbabwe or Venezuela.
One thing is certain, after June 18, things will never be the same again.