Facebook wants to be WeChat and it’s best done with cryptocurrency

Cryptocurrency allows Facebook to put consumers first and become a global financial powerhouse — and here’s how.

On Facebook you’re the product, not the customer.

The customer is the one who pays and drives revenue for the company. In this situation, advertising companies are the customers.

Facebook can’t put consumers first because advertisers pay cash and the incentives of advertisers and consumers mostly don’t align. Both consumers and advertisers want cool Super Bowl ads, but advertisers want as much data and attention as possible from consumers who don’t want that.

Facebook couldn’t put consumers first even if it wanted to.

Like all of us, Facebook must obey their incentives. Advertisers pay, so Facebook must put them first, unless consumers are disappearing in droves — which they might be.

Facebook needs to think about consumers to the extent they need to sell advertisements. This is where cryptocurrency comes in: even if Zuckerberg ardently wants to put consumers first, it’s literally impossible for Facebook to do so. Advertisers pay, advertisers are the customer, and the customer comes first. That’s the world companies live in.

Facebook now wants to put consumers first.

That’s because of changing Western and European attitudes and laws on privacy; of the disaster that was Facebook’s 2018; and it turns out that each of us needs Google searches much more than we need Facebook’s social network.

Facebook now wants to put consumers first, but literally can’t because advertisers are the customer.

Cryptocurrency is the bridge on which Facebook can transition their entire business model to one where consumers pay, consumers are the customer, and the customer comes first.

Cryptocurrency is the best vehicle by which Facebook can put consumers first and become the WeChat of everywhere but China.

For large tech companies that own customer experiences, blockchain enables capturing portions of the value chain currently occupied by banks and other financial intermediaries.

Cryptocurrency gives Facebook the opportunity to build a financial network that excludes banks. That’s why they’re working on a stablecoin.

Ten years ago, without cryptocurrency, Facebook could have tried to become WeChat by storing currency balances on their centralized servers, not unlike gift cards.

But, without cryptocurrency, Facebook still needs banks and financial intermediaries to effect fiat transfers and interoperate with the rest of the economy.

You can send money on Facebook today, but in a limited way on top of the existing banking system.

If Facebook does leverage cryptocurrency, it becomes a new global financial network, separate from the existing banking system — a foundation upon which others can build.

Facebook can use cryptocurrency to handle real money without banks.

The cryptocurrency superpowers offered to Facebook are handling real money without banks and a trustworthy economic foundation upon which others can build. (Ironically, the trustlessness of cryptocurrency will allow 3rd parties to trust and invest in Facebook’s financial network.)

Facebook can then charge consumers fees currently captured by banks and other financial intermediaries. Consumers pay, consumers are the customer, and the customer comes first.

Cryptocurrency makes consumers the customer.

In summary…

Facebook can use cryptocurrency to become the WeChat of everywhere but China, put consumers first, and become a new foundation for trillions of dollars of economic activity.

Facebook’s current business model puts consumers second, because advertisers pay, advertisers are the customer, and the customer comes first.

The value of Facebook’s current business model is decreasing due to changing privacy attitudes and consumers’ willingness to forgo using Facebook’s social network.

Cryptocurrency gives Facebook a new option: use WhatsApp, FB, Instagram to bootstrap a global network of financial services, and make consumers the customer by charging them fees currently captured by banks and other financial intermediaries.

Cryptocurrency unlocks a new model for Facebook:

• Consumers pay and are now the customer.
• The value proposition for consumers is now financial services accessible through Facebook, instead of whimsical use of a social network.
• Facebook’s incentives, as a consumer-first provider of financial services, are aligned with citizens of Western democracies (eg. on privacy) instead of with advertisers.

Imagining what this looks like…

I glance at my ZuckPhone 5: March 31, 2027, balance of $73.93.

I’m not worried, though. My next shift is tomorrow and I get my wages in real time while I work, dollar by dollar, ever since the company switched to FBTeam for payroll. I don’t miss the anxious wait for “pay day”.

On lunch break I tap my ZuckPhone to buy a sandwich. I sit down to eat and take care of my family: my sister’s student loans are due, a few taps sends the minimum payment of $85 (some of that I earned in the last twenty minutes).

Next up is my uncle, he lives in South America, but it’s all the same FBRent and he needs $100 for the 1st. After helping out my sister I only have $2.41. My balance goes negative as FBBorrow sends the other $97 and change to my uncle’s rent. Good thing I’ve been working on my FBCreditScore.

ZuckPhone takes the fees out of life. Pretty nice. Sandwich done, I head back to work.

Thanks for reading!