Will Twitter Get Into Cryptocurrencies?

Billionaire Elon Musk’s takeover of Twitter questions the links between the social network and cryptocurrencies.

Elon Musk has shown his interest in cryptocurrencies for some time: tweets about bitcoin and dogecoin, investment in bitcoins of part of the cash of his company Telsa… Elon Musk’s takeover of Twitter by Elon Musk for an amount of $ 44 billion raises questions the links between the social network and cryptocurrencies.

And a question arises: will Twitter get into cryptocurrencies? The social network could go further in using cryptocurrencies to improve its platform.

“The advantage of cryptocurrencies is the defense of balances, equality between producers and consumers of content by reducing intermediaries and promoting transparency,” said Julien Maldonato, partner at Deloitte, responsible for the financial sector.

However, the expert underlines that this is not an absolute priority for Elon Musk, who has pointed to the freedom of expression on the social network, the reliability of information or even opening the code in open source.

Twitter could become a place for exchanging value

The link between Twitter and cryptocurrencies makes sense, knowing that a cryptocurrency cannot exist without a network, like bitcoin on the Bitcoin blockchain, and so why not… without a social network.

“The meaning of the story is that the tools of exchange between people, such as social networks, will become places of negotiation and property management. And therefore Twitter could become a place of exchange of value beyond simple communication, between producers of content, or even goods and services, and consumers. Cryptocurrencies can make data, goods and services more liquid,” adds the expert.

Advertisements paid in cryptocurrencies

In particular, Twitter could compensate itself with ads paid for in cryptocurrencies, though Elon Musk has said he doesn’t want to turn the social network into a necessarily profitable business.

“Cryptocurrency would allow for disintermediation, improving the efficiency of capital over speed. Getting paid in cryptocurrencies on ads also makes it possible to go less through banks or other players like Stripe, who take commissions. Today, cryptocurrency manages. directly without Stripe does not seem relevant, but the question may arise in the future,” underlines Julien Maldonato.

Earlier this week, Stripe announced a partnership with Twitter, allowing certain users of the social network to be paid in cryptocurrencies to monetize their content. Twitter creators, such as influencers, can use the “paid spaces” and “super follows” features paid in USD Coin, a stablecoin (NDRL: A cryptocurrency backed by a fiat currency).

Moreover, since the announcement of the arrival of Elon Musk at the head of Twitter, the Dogecoin, this stubborn cryptocurrency, has risen by 24% in 24 hours. From there become Twitter’s currency? It is not so certain as the supply of this cryptocurrency is not limited unlike bitcoin.

“This raises questions about its value in the medium term, it could be devalued significantly. Dogecoin would have the same problem as the dollar, it is in danger of being devalued, so it may not be the right candidate to become the “most used asset.” are “in managing the value of Twitter. However, this is not impossible: the dollar, which is also subject to devaluations, remains the most used currency on earth,” the expert underlines.

In addition to using a cryptocurrency on the social network, could Twitter keep bitcoins in its treasury in the same way that Tesla does? The scenario seems likely. “Today, Twitter operates on the dollar, but if inflation remains so strong and the dollar devalues, it could prompt EM to make investment decisions toward an asset like BTC,” underlines Julien Maldonato.

Twitter’s interest in cryptos is not new

Last November, The Financial Times revealed the creation by the social network of a team dedicated to blockchain called “Crypto Twitter”, whose ambition is to “set the strategy for the future of cryptocurrencies on Twitter”. Twitter’s interest in cryptocurrencies is no accident. Its founder Jack Dorsey was getting closer and closer to blockchain and web 3, to the point where he left the company last November to devote himself fully to it.

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