Facebook's Crypto Makes All the Sense in the World

Facebook will (most likely) create their own cryptocurrency. And I think it's all about economies of scale, and monopolies, and switching costs.

Read the story here -> https://www.cnbc.com/2018/01/05/mark-zuckerberg-says-facebook-will-look-into-cryptocurrency.html

Facebook should have some smart cookies in their strategy team. I mean, now that they announced it, it seems so obvious.

When you have a massive customer base, and they all interact with their platform and your vendors, and customers, and there is a lot of money involved in your platform, why (the hell) not creating your own currency and leverage your prime spot?

I mean, today all the money that advertisers pay to place their terrible ads, that you pay to promote your terrible posts and play your terrible games, is managed is USD. That benefits Facebook only in the form of revenue (which is already great). BUT by creating and alt-coin, the revenue will not be affected, but because it HAS to be used (if Facebook limits its platform to their alt-coin), then the price of such alt-coin will only go up!

This move by Facebook is more about exploiting their scale, and less about them "jumping on the crypto frenzy." But regardless of the reason behind it, Facebook will see a windfall of profits coming their way in the near/mid future.

Good brains, good strategy, good move.