An analyst at Barclays investment bank in the UK, Ross Sandler, has made a statement about the potential impact of a Facebook cryptocurrency. Sandler speculated that the rumored “Facebook Coin” would bring the company an extra $3 to $19 billion dollars in revenue over the next 4 years.
The new revenue stream could change how Facebook approaches its model for generating future income. Sandler notes that Facebook generated $40 billion dollars worth of revenue, of which $39 billion dollars was generated from advertisements.
As advertisement fatigue begins to kick in for Facebook users the choice to diversify into a cryptocurrency coin could be a wise move, according to Sandler:
Any attempt to build out revenue streams outside of advertising, especially those that don’t abuse user privacy are likely to be well-received by Facebook’s shareholders.Ross Sandler
The earning estimates were based on the earnings from the Google Play store, which are claimed to earn Facebook $6 per user. When combined with WhatsApp, Instagram, and Facebook, the company has over three billion users at its disposal.