Speculation: 'Facebook Coin' Could Bring $19 Billion In Revenue

Barclays Analyst: Facebook Coin Worth $19 Billion in Revenue by 2021

Barclays Analyst: Facebook Coin Worth $19 Billion in Revenue by 2021

While Facebook will have its hands full in initiating a smooth launch for the stablecoin and securing adoption for its near 3 billion platform users, its worst-case scenario still appears profitable according to the banking analyst. If all goes according to plan, Sandler could see the company extending into the realm of consumer lending, remittance and physical payments, an industry that cryptocurrencies across the market have been attempting to capitalize on. The company's income is nearly fully dependent on advertising revenue now. As Barclays' note stated, any attempt to bring the revenue streams outside of advertising, especially those that do not abuse users privacy will be perceived very well by the shareholders of Facebook.

Reportedly, the Mark Zuckerberg-led firm has yet to make any official announcement concerning its crypto ambition.

Despite the price fluctuations seen in bitcoin's on an everyday basis, Facebook Coin is less likely to go through these changes, as its price will be backed by currency like the USA dollar.

Adding to this, WhatsApp remains popular in India, where it has over 200 million users. Publishers would be willing to "re-establish themselves as partners" if Facebook uses the crypto for micropayments.

According to Yahoo Finance data, the social media giant saw its shares drop from a $218 all-time high to a $124 low, before the company started recovering. In 2010, the company created a virtual currency called "Facebook credits", which CNBC describes as similar to modern-day cryptocurrency. The analyst wrote for nature of the digital coin, "Based on our checks, the first version of Facebook Coin may be a single goal coin for micro-payments and domestic p2p money transfer (in-country), very similar to the original credits from 2010 and Venmo today".

The venture wasn't successful and fizzled out after a while.

However, the early digitization proved costly for the company as they had to incur the conversion charges which was one of the prominent reasons for the project to be scrapped. As such, it will only end up eating into the company's profit.

A New Orphan Black Series May Be on the Way
It has not yet been confirmed if the new series will air on multiple networks as Orphan Black aired on BBC America in the U.S. Instead, it will reportedly be a new show with new characters that takes place in the same universe as Orphan Black .

However, the second time could be the charm.

The potential launch of Facebook's digital currency has divided the opinion of the crypto space. Not to mention that the company also has additional platforms to distribute content (Instagram and WhatsApp) that could use the stablecoin.

Nonetheless, it was outlined that Facebook will have to bear most of the interchange costs between fiat and the virtual credits.

With all this in mind, Sandler believes that the new crypto could bring in $19 billion for the firm by 2021.

The Barclays investor has compared Facebook's revenue to Google's digital distribution service, Google Play. According to him, Google gets at least $6 United States dollars per user with the program and Facebook could also earn a lot with its users by making this strategy something real.

Sandler noted the asset could alter Barclays view on Facebook.

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