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So, there’s obvious benefits for FB. What are the benefits for users? Are people actually going to want to use this?

by chabes 7y ago

will_brown 7y ago
Probably have to wait for the whitepaper to come out to give a fair opinion/analysis (rather than an article about the future release of the whitepaper). Once the actual use case/function of the token is know then one could answer if there is a benefit to users and if a Blockchain token makes sense over a database.
bitreality 7y ago
For users, the advantage would be an easy to use stable-coin, that is more accessible to the average person. Right now, most crypto currency has plenty of complexity to it. FacebookCoin will probably work more similarly to CashApp vs. Bitcoin. It means most people using it won't even realize it's a Blockchain token. It'll be like "Facebook Bucks". But then it also offers the flexibility of a blockchain token to more advanced users (withdraw to your own wallet, send to an exchange, etc).
- acdha 7y ago
  This is the same reason why cryptocurrencies haven’t seen general adoption: none of that has any inherent value to someone who isn’t already a convert. Things which would matter are “can transfer real money to a friend with less markup than Apple/Google/PayPal”, “can sell things online at better terms than PayPal”, “can make transactions at a low enough rate that a business model requiring micro-payments is viable”, etc. Facebook has a few wrinkles where that could be interesting - micropayments for games and content in particular - but it’s unclear what a blockchain adds to that since you’re already centralized on a single massive company which negotiates on take-it-or-leave-it terms.
  - rkagerer 7y ago
    I agree, but [more general] cryptocurrencies do already check a few boxes: - is cash you can email - prevents hostile monetary policy from stealing your wealth (inflation, negative interest rates, haircuts, etc) - keeps working when you travel (unlike Paypal / credit cards which often get frozen) - uncensorable transactions that ignore borders - can send large $ amounts anywhere for ridiculously cheap - more vertigo than a theme park If none of those excite you, crypto isn't for you today (just like the internet wasn't for you back in the 90's) and you should wait another 10 years until it's mainstream.
    - acdha 7y ago
      “cash you can email” may be a cool-sounding bumper-sticker but it's not how I'd describe something which requires operating a complex multi-party system. Similarly, “large amounts for ridiculously cheap” has historically not been true and given how much highly-visible and easily blocked infrastructure a blockchain requires to be online in order to operate, “uncensorable” is more of a hypothetical aspirational goal than a given (an envelope of USD is much safer). “hostile monetary policy” is especially dubious in this context where it's supposedly pinned to the USD but even in other cases it's a hard sell for most people: do you a) put your money into a bank account, investment, or other asset you expect to do better than inflation or b) put everything into a complex system with no guarantees that it'll be operating in 5 years, fraud protection, etc. and hope that the conversion fees you pay on both sides will be lower than the difference? “keeps working when you travel” could potentially be an area where it could match the credit card system except that it either means that you're traveling with a ton of cash and no recourse if someone steals it or, if like most people you use a managed service somewhere else, hoping that you don't trip the same kind of security measures which banks use for the same reasons. Given that most people do not travel that frequently and most travelers do not have significant issues using credit cards while abroad, it's unclear to me that this will be enough of a compelling advantage.
      - rkagerer 7y ago
        I'll bite on the first one. Cash has a complex infrastructure underpinning it - legislating, printing, securing, distributing, managing policy / rates, etc. It keeps the dollar you get today (mostly) spendable tomorrow. You're simply so accustomed to it you ignore it. Same way most people don't think about the pistons on their car, now that the user experience of driving is straighforward. Eventually folks will do the same for the complexity underpinning crypto. Case in point: I bought a new phone from overseas a few weeks ago. Paypal / wire fees were expensive, and after three days TransferWise (suggested by the seller) still couldn't make my new account work. I wound up paying in crypto, took about 5 minutes and cost me less than a buck. So yeah: cash I emailed.
- deleted 7y ago
  [deleted]

So, there’s obvious benefits for FB. What are the benefits for users? Are people actually going to want to use this?

by chabes 7y ago

So, there’s obvious benefits for FB. What are the benefits for users? Are people actually going to want to use this?

Probably have to wait for the whitepaper to come out to give a fair opinion/analysis (rather than an article about the future release of the whitepaper). Once the actual use case/function of the token is know then one could answer if there is a benefit to users and if a Blockchain token makes sense over a database.

bitreality 7y ago

For users, the advantage would be an easy to use stable-coin, that is more accessible to the average person. Right now, most crypto currency has plenty of complexity to it. FacebookCoin will probably work more similarly to CashApp vs. Bitcoin. It means most people using it won't even realize it's a Blockchain token. It'll be like "Facebook Bucks". But then it also offers the flexibility of a blockchain token to more advanced users (withdraw to your own wallet, send to an exchange, etc).

acdha 7y ago
This is the same reason why cryptocurrencies haven’t seen general adoption: none of that has any inherent value to someone who isn’t already a convert. Things which would matter are “can transfer real money to a friend with less markup than Apple/Google/PayPal”, “can sell things online at better terms than PayPal”, “can make transactions at a low enough rate that a business model requiring micro-payments is viable”, etc. Facebook has a few wrinkles where that could be interesting - micropayments for games and content in particular - but it’s unclear what a blockchain adds to that since you’re already centralized on a single massive company which negotiates on take-it-or-leave-it terms.
- rkagerer 7y ago
  I agree, but [more general] cryptocurrencies do already check a few boxes: - is cash you can email - prevents hostile monetary policy from stealing your wealth (inflation, negative interest rates, haircuts, etc) - keeps working when you travel (unlike Paypal / credit cards which often get frozen) - uncensorable transactions that ignore borders - can send large $ amounts anywhere for ridiculously cheap - more vertigo than a theme park If none of those excite you, crypto isn't for you today (just like the internet wasn't for you back in the 90's) and you should wait another 10 years until it's mainstream.
  - acdha 7y ago
    “cash you can email” may be a cool-sounding bumper-sticker but it's not how I'd describe something which requires operating a complex multi-party system. Similarly, “large amounts for ridiculously cheap” has historically not been true and given how much highly-visible and easily blocked infrastructure a blockchain requires to be online in order to operate, “uncensorable” is more of a hypothetical aspirational goal than a given (an envelope of USD is much safer). “hostile monetary policy” is especially dubious in this context where it's supposedly pinned to the USD but even in other cases it's a hard sell for most people: do you a) put your money into a bank account, investment, or other asset you expect to do better than inflation or b) put everything into a complex system with no guarantees that it'll be operating in 5 years, fraud protection, etc. and hope that the conversion fees you pay on both sides will be lower than the difference? “keeps working when you travel” could potentially be an area where it could match the credit card system except that it either means that you're traveling with a ton of cash and no recourse if someone steals it or, if like most people you use a managed service somewhere else, hoping that you don't trip the same kind of security measures which banks use for the same reasons. Given that most people do not travel that frequently and most travelers do not have significant issues using credit cards while abroad, it's unclear to me that this will be enough of a compelling advantage.
    - rkagerer 7y ago
      I'll bite on the first one. Cash has a complex infrastructure underpinning it - legislating, printing, securing, distributing, managing policy / rates, etc. It keeps the dollar you get today (mostly) spendable tomorrow. You're simply so accustomed to it you ignore it. Same way most people don't think about the pistons on their car, now that the user experience of driving is straighforward. Eventually folks will do the same for the complexity underpinning crypto. Case in point: I bought a new phone from overseas a few weeks ago. Paypal / wire fees were expensive, and after three days TransferWise (suggested by the seller) still couldn't make my new account work. I wound up paying in crypto, took about 5 minutes and cost me less than a buck. So yeah: cash I emailed.
deleted 7y ago
[deleted]