It is not uncommon to hear various companies and firms investing in cryptocurrencies nowadays. After all, the crypto industry has skyrocketed in terms of usage and popularity as of late, and Bitcoin continues to dominate despite some fluctuations here and there. Many companies such as Tesla, PayPal and JPMorgan Chase and Co. have all made their intentions known when they decided to invest in Bitcoin, but the world’s famous social media platform, Facebook, seems to be heading in the opposite direction.
Due to so many socio-economic institutions adopting crypto, it would have made sense for one to assume that Facebook would also want to get involved. However, these rumours have since been debunked by Facebook itself, as the social media juggernaut neglected to announce any kind of substantial BTC purchase during its earnings call, much to everyone’s surprise.
Facebook not interested in Bitcoin despite strong earnings
As of right now, BTC’s price is $53,673, which is a 2.1% decrease since yesterday. The current market cap of the world’s biggest cryptocurrency is that of $1,004,915,675,572. Bitcoin had also reached new ATHs (all-time highs) not too long ago, so it would once again make sense for large-scale companies and investors to want to adopt it into their every day business-related activities and transactions despite the risk of increasing regulation.
This would, in turn, lead one to wonder as to why Facebook, one of the world’s biggest and most successful conglomerates, seemingly wants nothing to do with the abovementioned crypto. There had been speculation that the decision had somewhat to do with the prevalent legality of the cryptocurrency industry, as it still exists in a legal grey area for most parts of the world, especially in the United States. Another reason could be that perhaps Facebook is simply not interested in investing large amounts into such a volatile and unpredictable industry and that it is comfortable with its current earnings and position.
Whatever the case may be, Facebook has a market capitalization of $876 billion, and so if it did decide to invest in Bitcoin, then it would be the largest company to do so in terms of including it on its respective balance sheet. This could also theoretically lead to even further opportunities for wider corporate and business adoption.
Familiarity with crypto
While it is true that Facebook has no intentions of investing in Bitcoin at the moment, it has nonetheless delved into the world of cryptocurrency before. In fact, the Diem Association, which is backed by Facebook, will be piloting Diem later on in the year.
Facebook CEO and founder Mark Zuckerberg had also previously expressed interest in cryptocurrencies back in early 2018 for the first time.