It’s long been speculated as to what the catalyst will be for the next cryptocurrency bull run that brings crypto to the mainstream and surpasses all-time highs.
Many people tout that institutional money will drive the market, others say cay it will be crypto merchant adoption, and some people say the social media giant Facebook will revolutionize the world of digital payments, bringing an influx of new capital to crypto.
Speaking on this topic in a recent interview with Bloomberg was Spencer Bogart, a partner at the blockchain-centric venture capital firm Blockchain Capital.
What’s the Crypto Catalyst?
Per the interview, Bogart highlighted that it’s widely speculated that the “bottom” of the cryptocurrency market has been reached, and there are now several catalysts that could spark the next crypto bull run. One in particular is the Facebook Coin project, which is what really sparks his interest.
According to Bogart, the Facebook Coin project is incredibly significant, as Facebook is a global social media platform with billions of users. This project could act as a bridge to the cryptocurrency industry as it operates along the same lines.
He says that Facebook’s universal dominance coupled with a crypto-esque digital payments project is likely to have a “trickle-down” effect to Bitcoin and the larger cryptocurrency market as a whole.
Adding to this, he said:
“Facebook is significant from a global scale perspective, and even if a small percentage of those users trickle into crypto, we’re going to see a doubling or a tripling in the users base of crypto over the next couple years.”
Facebook is the “Gateway Drug” to Bitcoin and Crypto
During the interview, Bogart stressed that Facebook will be a “gateway drug” or a “stepping stone” that introduces billions of people to the cryptocurrency industry. Once people adopt Facebook’s fiat-backed stablecoin and become confident using it, they will branch out and move into Bitcoin and other crypto assets.
He said there’s bound to be some percentage of Facebook’s user base that wants to explore other cryptos. For this reason, Facebook can be a dramatic catalyst.
Moreover, Bogart mentioned that the Facebook Coin project will not only catalyze retail interest and adoption of cryptocurrencies, but it is also sparking a great deal of interest among several of the biggest FinTech and financial institutions in the United States.
He then referenced institutions, including Fidelity Digital Assets, ETrade, and TD Ameritrade, as delving into the industry with crypto-centric services, stating that Facebook’s move into crypto is catalyzing their actions to act now, rather than wait and see.
Do you agree that Facebook will be the catalyst or “gateway drug” that brings mainstream users into crypto? Let us know what you think in the comment section below.