Technology

Does Facebook own Bitcoin? Not in accordance with first trimester warnings

Ahead of the release of its first quarter earnings report, rumors circulated that Facebook has invested heavily in Bitcoin. However, when the social media giant revealed the first quarter results with a call after the market closed on April 28, the company’s assets showed no sign of bitcoin – or any other cryptocurrency for that – in books.

Speculation over Facebook’s digital currency holding began when Atlanta Digital Currency Fund’s CIO, Alistair Milne, tweeted the rumor that sparked a snowball of speculation on social media.

Milne has since echoed those comments saying we won’t be back on Twitter until Facebook buys Bitcoin. Many disputed this claim, while others argued that it made sense given Facebook’s attempts to enter the cryptocurrency space in the past.

Facebook continues its cryptocurrency adventure despite past setbacks.

In 2019, Facebook announced its initial intention to launch a global digital currency called Libra. However, he faced immediate backlash from governments around the world, accusing him of trying to circumvent local regulations. Facebook’s attempts to register Libra in Switzerland have drawn the ire of the US Congress.

The currency was to include, among other assets, the Special Drawing Rights (SDR) reserve currency of the International Monetary Fund (IMF) – a set of five currencies comprising the US dollar, the euro, the renminbi, the yen and the British pound sterling.

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Balance

diem

Ultimately, Libra was scrapped after several company members quit the project, including PayPal, Visa, Mastercard, Stripe, Mercado Pago, and eBay.

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Facebook has completely renamed the Libra project, now called “Diem”. According to Diem’s ​​official copy, its mission is “to build a reliable and innovative financial network that empowers people and businesses around the world”.

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Facebook’s ambition to release its own digital currency may be the reason it has yet to invest in another cryptocurrency. The announcement of a large tech company bullish on a particular coin could create an even more difficult barrier to entry for a new digital token with Facebook’s name behind it.

Other Fortune 500 companies have invested in cryptocurrencies.

Although it is impossible to correlate, the value of bitcoin fell almost 2% after the publication of Facebook’s earnings. While the news of Facebook investing in Bitcoin would have helped increase value, it wouldn’t have been entirely shocking news. Many companies have already integrated cryptocurrencies into their overall investment strategy.

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Most notably, Tesla said its BTC holdings reached $ 2.48 billion at the end of March. This marked a $ 1 billion increase since Tesla first announced it had invested in crypto. Earlier this year, the automaker revealed that it had purchased $ 1.5 billion worth of bitcoin and would start accepting cryptocurrency as payment for its vehicles, which it would not trade in USD but would keep in BTC.

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Tesla was bound to be one of the first companies to jump on the crypto bandwagon. CEO Elon Musk has been a strong supporter of digital currencies for quite some time.

Towards the end of 2020, payment facilitator Square bought 4,709 bitcoin for around $ 50 million. Earlier this year, the company bought an additional 3,318 BTC for $ 170 million. While the recent award hasn’t seen much relative growth, Square’s initial investment has grown by over 500%.

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While anything can happen by the time of Facebook’s next financial report, the lack of cryptocurrencies on its assets says a lot about what the company thinks of a Facebook-backed token.


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