Reposting this comment as its own post to hopefully generate some discussion about how Bitcoin Cash can best respond to the threat of Facebook's new cryptocurrency.
If we don’t think Facebook's imminent crypto currency is an existential threat to decentralised public blockchains then we're being incredibly naïve. They already have Visa, MC, PayPal and eBay on board, amongst many others. This is how fiat stands up to decentralised public blockchains and strikes back.
They will be cheaper, faster (centralised), and more reliable (instant confirmations). They will be everywhere, inside all social media, chat apps, online stores, probably soon also in most point of sale terminals at brick and mortar stores. They are reported to have 1 billion in reserve at or soon after launch.
We need to take this seriously. This is how they will (try to) kill crypto.
What can we do? Here are a few ideas, but please suggest more.
- We need to use Zuck bucks against them. If it’s easy to onboard to Zuck bucks, then we need to make it as easy as possible to get from Zuck bucks to real crypto (Bitcoin Cash). This means leveraging services like sideshift.ai for in-wallet conversion to Bitcoin Cash with Zuck buck deposits. We need the conversion to be seamless and instant if we want to turn Facebook's cryptocurrency into the best gateway drug for Bitcoin Cash.
- Those with the most to lose by the possible failure of crypto need to double down on investment in development by (a) funding infrastructure, (b) investing in innovative startups that are trying to build out the ecosystem.
- The rest of us need to work smarter. This is the moment that we realise we’ve missed the forest for the trees. The enemy was never blockstream, or LN, it was always fiat. Now fiat is striking back. No more wasting time, effort and money on mindless debates with Bitcoin maximalists. No more whining about how the small blockers used underhanded tactics to kick our asses. We can’t afford to play games anymore. We need to focus on building the best peer-to-peer cash network.
- We also need to work together. Will Facebook have 12 mediocre, glitchy, amateur looking wallet apps? No. If anything they will have one slick as fuck wallet app with Apple and google pay integration. They will also have seamless integration into all Facebook-based social media apps. We have tonnes of talented devs working on different wallet projects, but this diversity also means our efforts are divided. We need to roll out fast, stable, secure, SIMPLE, wallets with full functionality, brilliant UI. We need a UX that is better than fb. That’s going to take cooperation. We need to get rid of addresses, and seed phrases, whilst retaining full security and ownership of private keys if we’re going to win over the normies. There's lots to be done and I'm not sure we can achieve it without dividing the labour.
This is the real deal. It's the battle that’s been coming for 10 years, and the truth is we’re far from ready for it. We need to get our shit together and that starts with taking it seriously.