While not official, it looks like we’re going to see Facebook’s GlobalCoin sometime soon. And yet, if this rollout does happen, new research has indicated that the Facebook cryptocurrency will struggle to gain traction.
Here’s why.
Facebook’s GlobalCoin Hits Roadblock
The most recent piece of news about Facebook’s GlobalCoin came out last week, on May 24. It was at this time that BBC, a UK broadcasting company, said social media giant Facebook plans to launch its cryptocurrency GlobalCoin next year, even going as far as saying the company plans to conduct trials by the end of this year.
But of course, this hasn’t been publicly confirmed by Mark Zuckerberg’s company, and maybe that’s a good thing.
Yesterday, May 28, Diar, a cryptocurrency analytics firm, published a research report saying GlobalCoin will struggle out the gates as it won’t gain traction because of the demographics that use the platform.
According to Diar’s research, less than half of the platform’s users are under 35-years-old. Meanwhile, the number of users above the age of 65 has more than doubled since 2012. And here’s where things get tricky: retirees may be the main demographic on Facebook, but they are also the weakest in terms of interest in cryptocurrency. With that, Diar is confident that GlobalCoin will not be enough to pursue this demographic to enter the crypto zone.
Most people recognize that Facebook is falling in popularity with younger demographics. And while that does many things for the company, a new concern will be whether GlobalCoin will be at risk because of it. And with platforms like SnapChat gaining more traction than Facebook, the platform probably doesn’t need any more problems.
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Thoughts?
Who knows, though. Maybe GlobalCoin will end up being the exact thing that was needed for baby boomers to start investing in cryptocurrencies. Or maybe not. Maybe GlobalCoin will flop. Only time will tell, I suppose.
What do you think about Diar’s research? Is it fair to say GlobalCoin will struggle because Facebook doesn’t have the right demographic for it?
Let us know what you think in the comments below!
Featured image: DepositPhotos © Shawn.ccf
