Why is Facebook now called Meta, and what does it mean for crypto?
Welcome to the cryptohunt jam where we spend one minute a day to explain crypto. In plain english.
So, you’ve heard the news. Facebook, the company, is no longer called Facebook. They renamed themselves to Meta, a new company with a focus on virtual reality.
Sounds crazy? Well it is! No wonder that the reactions ranged from disbelief to making Meta the topic of many jokes. But let’s break it down and take a really good look. It might actually make sense!
But first things first - Facebook, the product you know, isn’t going away, and neither are Instagram and all the other things the company operates. They will keep their names as well.
But here’s the deal: Facebook as a company has long seen the writing on the wall. User growth hit its limits, and a younger generation prefers TikTok over Facebook and Instagram. And then there are the issues of free speech vs. misinformation, privacy concerns, and potential government regulations. These are, let’s be clear, very hard problems to solve even for a company like Facebook.
So, what do you do then if you are Mark Zuckerberg: Work even harder and fight the slow death, maybe turn Facebook into something different and risk losing a money-printing business?
Absolutely not, said Zuckerberg, and instead figured he could use all that sweet money to build an entirely different empire: One that owns virtual reality. It’s a crazy gamble on a specific version of the future, but let’s look at it: Virtual reality technology is already getting so good, people fly realistic airplanes, play games, and design cars in it. Plus, Facebook already owns Oculus, one of the dominant makers of VR headsets.
It may sound distopion to you now, but is it such a stretch to assume that spending time in VR and interacting with others will be an experience many people prefer? Heck, what if we all end up spending most of our time there - working, hanging out, all the things you do.
Let’s assume that happens: Then, suddenly people will want to own things to use and show off there. Humans are humans after all. And what is better suited than crypto to pay for virtual things?
So keep an eye on it: It could be the killer use case for crypto, taking it from concept to essential. Whether Facebook will dominate the space or not, that is to be seen. But the strategy, although very bold, makes a ton of sense. If Zuckerberg succeeds, this could become the single most important turnaround any company has ever done. So, next time someone jokes about Meta, tell them there is something to this whole idea.
Disclaimer: This podcast references our opinion and is for information purposes only. It is not intended to be investment advice. Do your own research and seek a duly licensed professional for investment advice.
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