Consequently, I have to ask is Facebook really planning a cryptocurrency? I ask this question because there are serious technical and legal obstacles facing cryptocurrencies. The blockchain scalability problem is the biggest technical obstacle to a Facebook cryptocurrency. Today’s blockchains can only transmit tiny amounts of data at low speeds because all the encryption limits space. For instance, Ethereum creator Vitalik Beterin admits his cryptocurrency “can only process 15 transactions per second” (TPS), Invest in Blockchain reports. Thus, an Ethereum platform could crash if it tries to process over 15 transactions per second. Scalability could make a Facebook cryptocurrency impossible because Facebook itself had 2.38 billion users in 1st Quarter 2019, Statista estimates. In addition, Statista calculates WhatsApp had 1.6 billion monthly users in April 2019.
Moreover, Zephoria notes, “as of March 2019, “Snapchat reached 90 percent of all 13-24-year-olds and 75 percent of all 13-34-year-olds in the U.S.” Additionally, Zephoria calculates Snapchat had 60 million active users in Europe and 79 daily active users in North America in 1st Quarter 2019.