On May 28, an analytics company Diar published its weekly report which says that Facebook’s coin aimed at the market of remittance and online payments may have serious difficulties due to the demographics of Facebook users.
Even though Facebook is one of the largest social media platforms in the world, aging FB users may become a significant barrier in GlobalCoin’s mass adoption.
Amount of retirees on FB has been doubling
Diar’s study demonstrates that among people who regularly use Facebook there are less than half younger than 35. As for retirees on Facebook, their number has been growing more than double since 2012 (people over 65).
As many researches have shown earlier, elderly people (from the Baby Boom generation) are the smallest group to make cryptocurrency investments, let alone understand how Bitcoin and other virtual coins work.
So, the report points out, they are highly unlikely to change their attitude once GlobalCoin appears, since this age group is a major barrier in crypto adoption, even from a popular social media platform.
The study says:
“Facebook will be facing an uphill battle on multiple fronts, primarily starting from an aging user base whose knowledge of cryptocurrency likely to be near nil.”
“Educating 25% of the world’s population about current cryptocurrency infrastructure that requires private-key management and the glaring reminder of the possible ultimate loss of funds is also unlikely as it would result in the project’s near instant failure.”
Facebook is losing battle on the teenage field
Apart from getting the majority of its users aging, Facebook is also noticed to be losing its teenage audience.
A recent study by the Pew Research Centre believes that Facebook has lost its attractiveness to teenagers as opposed to its rivals.
85 percent of US teen audience prefer making and watching YouTube content. Even SnapChat has got more teenage users than Mark Zuckerberg’s platform.
The study states that currently the growing dominant group of Facebook users are households with low income, including teens. That seems to be a poor basis for adopting GlobalCoin which Facebook has global plans for.
On the other hand, a recent study by LendEDU reveals quite an opposite thing. As per the research, adult US population believes Facebook’s GlobalCoin to be an even more attractive investment than Bitcoin, XRP and other similar assets.
Many who took part in the LendEDU poll believe that ‘Facebook Coin’ will be used not only for remittance to India via WhatsApp but will generally transform the crypto market.
As previously reported by Ethereum World News, Facebook has set up a startup in Switzerland (a country with a ‘crypto-friendly’ attitude) to work on its upcoming stablecoin.