GlobalCoin may face demographic challenges as most Facebook users are ‘too old, too broke’ for crypto, according to Diar’s research.
“Facebook will be facing an uphill battle on multiple fronts, primarily starting from an aging user base whose knowledge of cryptocurrency is likely to be near nil,” Diar said.
Less than half of Facebook’s users are under 35 years old. Only 50% of US teens use Facebook, with many preferring youth-focused competitors like Snapchat.
The number of retirees who’ve joined the platform has doubled since 2012. This doesn’t bode well for Facebook’s cryptocurrency.
Rumors that Facebook is developing its own cryptocurrency, appeared in May. Later it was reported that Facebook is developing a stablebcoin which can be used for money transfers in WhatsApp messaging app. Unlike most other stablecoins, Facebook’s coin would purportedly be backed by a basket of foreign currencies. Currently, the company is looking for investors for raising $1 billion for its cryptocurrency project.