That statement might make some thing that I have lost my mind.
But actually, when you think about it, Facebook creating a token is the best thing that could ever happen to STEEM. While some of what I write is speculation, it fits with the way things operate in the corporate world.
To start, Facebook is an entity that generates billions of dollars a year. This is money Wall Street not only counts on, but expects to increase each year. We know how much Facebook profits off selling data which comes from controlling the ecosystem.
This means that Facebook is going to set up something that is centralized and under their control. At the same time, do not believe for a second that the Facebook token is going to "share the wealth" to any great degree. Zuckerberg and Wall Street are not going to hand over hundreds if billions of dollars each year to the users of Facebook.
Therefore, any token that Facebook creates will be akin to a frequent shopper program. It is true Facebook users will eat it up since they will go from making nothing to getting something. However, the trust factor outside Facebook is not going to be there since we are looking at a centralized system.
And imagine the fallout if (or is it when) it gets hacked. We could potentially see a honeypot of 1B-2B keys.
Certainly, Zuckerberg and Facebook will try to "sell" this as a cryptocurrency like Bitcoin except people can earn it. We all know this is nothing like decentralized cryptocurrencies but the masses will not. Therefore, they will buy into it which is a great thing for STEEM.
What this entire process will do is legitimize STEEM, cryptocurrencies, and the entire blockchain world. When one of the biggest names gets into it and says this is how we solve many of our problems (even if it is an illusion), that goes a long way.
Another thing it will do is get the masses using cryptocurrency. Right now the entire industry is facing the prospect that all early adopters are in. From what I can see, things are stalling a bit on the adoption end because people who are not involved are resistant. A Facebook token will help overcome this. Billions suddenly will be introduced to the entire concept. That opens up a whole new category of people.
STEEM will also have another major advantage....Smart Media Tokens.
Branding is an important aspect in business today. With attention being at a premium, having people recognize you is crucial. As we move forward, an entity having its own token will help in this endeavor. Every large entity is going to create one over the next 5 years. It only makes sense.
In the content creation world, Smart Media Tokens are meant to assist companies in this. This gives STEEM a leg up. STEEM will be extremely valuable with 25M-50M people on the blockchain. When compared to Facebook's billions, this is a small piece of the social media pie.
The best part of all this is STEEM will not have to attract those people to STEEM. Rather, it is the entities that create the tokens that will do the marketing and draw their followers to this blockchain. STEEM's traffic will be other businesses' followers. Now, that is a great business model.
Finally, Facebook is not going to be able to keep up in innovation. @ned is consistent with his goal of having over 100K entrepreneurs on the STEEM blockchain in 5 years. The main advantage of blockchain is that it is open and decentralized. Anyone can hang something on this blockchain. There is no need for approval from anyone. The code is open for anyone to copy. STEEM is even going one step further and creating manuals for developers to follow as to how to create applications on this blockchain. They are openly inviting anyone to become involved.
Do you think that Facebook will do that? All innovation and creation will be done by their programmers. While I am certain that are very good at what they do, they cannot keep up with the sheer volume and power of the masses. When there are tens of thousands of people hacking away at code creating whatever interests them, that is something that will produce huge results. We see the beginnings of that already.
We are at a time where the establishment is getting into blockchain because of the advantages it provides. We saw the same thing with the Internet back in the 1990s. The purveyors of information all embraced the Internet becoming some of the first websites published. These companies, mostly newspapers, magazines, and news outlets, ended up getting crushed by this now tool. Blockchain is going to do the same thing.
It is the Trojan horse. They are inviting it into their house not realizing it is going to eat them alive. In my view, fiat currency, banks, and, ultimately, governments will not be able to stand up against this new technology. All those are much stronger than Facebook and have no chance. Hence, I see the same outcome for Facebook.
That is the power of open and decentralized blockchains.
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Facebook does have a lot of man power and they also have a billion users. I think they could be huge in getting crypto to go mainstream, but I also think if they do it wrong it could scare away a lot of users. This is a tricky situation to say the least. Will be very interesting to see how it goes
steem will be way better
Not necessarily...
Facebook has billions of dollars backing it up, in fact they might be experimenting with cryptocurrencies right now.
We have nothing even close to that, except that we have a head start.
well, Microsoft had billions of dollars and then there was that little startup called Goobl or Google or something like that... ;-)
I wonder if and when it will launch?
https://www.theverge.com/2018/5/11/17344318/facebook-cryptocurrency-token-blockchain-report-david-marcus
Thanks for your perspective! I originally thought it might be bad news for Steemit, but I think you are right.. FB is already too far behind with their innovation
Facebook last quarterly earnings said it now has 1.45 billion daily users. This is the key metric they follow as it determines the target for advertisements which is what pays the bills for Facebook. Therefore, this is an excellent example of how a platform can create value because of the interactions of a community. Taking the daily users, we find that each user generated $8.28 of sales for them during the quarter. From a net income perspective, it would translate to $3.44 per user.
These metrics are really interesting as it could serve as a comparison to what we see on the #STEEM platform. While I am still learning about how the blockchain issues rewards, I think the comparison figures are promising for those of us who want to grow on #STEEM and its ecosystem. As per @penguinpablo, we are currently at 66,160 daily active users. If we use Facebook metrics, we could generate $547,531 in revenue on a quarterly basis. If we divide that up to an average daily amount for the Blockchain it equal $6,084 per day. I think that current daily reward pool on #STEEM is much larger. An article from 10 months ago had the daily rewards pool at 49k STEEM which at the time was at $2 each. This figures eclipses by far the $6,084 metric from Facebook.
Given this, if Facebook users enjoy the concept, they will seek better opportunities like Steemit.
Wow great comment.... That really puts things in to perspective.
It helps that much of the price of Steem is due to speculation. It kind of helps feed into itself as people are bullish on the growth.
Very interesting. No idea how accurate those numbers are but ill take your word for it. lol. Sounds promising!!! Thanks for the insight! @newageinv
I've been saying this for a while as well. Centralized entities coming in and trying to bend the system to their will is only going to give strength to decentralized blockchains.
Facebook coin? Thanks for the legitimacy. Fedcoin? Again, thank you. Blockchain patents? Decentralized movements don't have to obey. Just like you can't shut down Pirate Bay and P2P torrents you can't stop crypto. You can only help it or stay neutral.
Hi @taskmaster4450 ! Very true, Facebook will come with its own centralized cryptocurrency and will make the promoting job and education job of how a cryptocurrency operates within their own centralized ecosystem, and that will introduce the masses to blockchain technology!
And this will make other small companies to want to release their own crypto, and since SMTs from Steem will aid on this very easy, loads of people and steem investors will come to the Steem blockchain!
Great post and ideas! Thanks for sharing.
Regards, @gold84
You’re actually right. Facebook tokens are as unworthy as the platform itself if it can not distribute wealth to over 2billion active Facebook users. What the point of a time wasting platform when the idea to tokenize social media is being adopted. Well I’m proud to be a steemian and that’s what I’d continue to be
This is speculation but a strong one, I have also been thinking of that recently and waiting on Zuckerberg or what his got up his sleeve with the announcement early in the year for interest in cryptocurrencies.
I am waiting patiently and you do have strong points of what it could possibly mean for STEEM.
Another great post from you...thanks
The impatient part of me wants SMT’s yesterday. But the patient part of me wants the development team to take all the time they need to get it right. A premature release could be a disaster.
Of course this is inevitable, and there is more stubbornness than I'd like to be aware of. I'll have to be patient with these late arrivals when they finally sway and become new users.
I find your words "eat them alive" an interesting reality check, yet comical.
I share your confidence that it would be good for us. Cryptocurrency is peaking interest all over and I hear it mentioned more and more in mainstream shows talking about market developments.
If someone who has so many mainstream users adopts it - it only can be good.
Open and decentralized system very powerful. Especially Steemit and EOS community is something growing faster! Good times ahead
Facebook Creating A Token, i think its good news for us, waiting for this moment.
i also waiting sir @sabbir1213 its a really really good news for us.
I like this post, very useful post brother @taskmaster4450
Good post,thanks for sharing....
Thanks for this informative post
Has the STEEM Team put out anything new on SMTs in the last month?
I have not seen anything about the project in at least that timeframe. Seems to be a bit of a marketing and business fail there...
I think they have to reasons for not communicating:
Yea, could be. And I need to remember that it's a long term thing. Problem is it's a fast market. Steemit is not good enough to compete with other SOcial MEdia, and #SoMe operates, a great deal, on Hype.
I can't hype this. Busy.org is close, but it's still too clunky. I think @DLive is the only DAPP that looks to be at fighting weight at present.
And I need to know how SMTs are going to work... like NOW! ;-)
Good post. Interesting :)
i like this post......
wow!!! That's a great news..Facebook token system will keep a important role on digital society..thanks for sharing this news,,
@upvoted and @follow you
i feel that if steemit positions itself as a high quality content publishing platform it could really hurt social networks like FaceBook with respect to content. the system of integrated rewards can be introduced by FB very easily and it is anyway not our USP. Steemit is unique because it is attracting content creators.
FB did both and paid the price because often enough only the lowest common denominator makes sense
if steemit is owned by millions of content creators, we work with each other to polish the content and attract external consumers of the content as a publishing powerhouse, then we will create a niche for ourselves that will expand with time to encompass all content.