Question

1. How does Facebook intend to use cryptocurrency within its platform? How would Facebook make money if its users start to use cryptocurrency within the Facebook platform? Describe how Facebook's business model is changing over time. How has it traditionally made money in the past, and how is it planning to make money in the future? What are the implications of Google's plans to limit the use of browser-tracking cookies?

Answer 1

Cryptocurrency is a digital currency developed to use as a medium of exchange to secure financial transaction.

1. Facebook intends to use cryptocurrency within its platform in the following ways-

• Challenge other payment methods like paypal, amazon pay- It can challenge other payment methods like paypal, amazon pay as Facebook has many active users and if it launches cryptocurrency that can be most widely used currency.
• Reward users - It will reward its users for purchasing and viewing adds.
• Discounts- Facebook will also provide discounts on purchase like Amazon
• Stable coins can be used - It is a good idea as price of cryptocurrency fluctuates widely.
• It can interrupt credit card companies.

2. Facebook make money if its users start to use cryptocurrency within the Facebook platform in the similar way as other platform earns like Amazon, Paypal, Google Pay, Paytm.

They might have tie-up with hotels, transport services, restaurants, theatres, shopping brands, mobile operators, Amusement parks, Cable, financial services (loans , Insurance etc) and from them they will get some commissions or payments.

Also Facebook has more than millions of active users so it will make money easily.

3. Facebook's business model is changing over time as when the Facebook started, it has some of the features and with the passage of time, features keeps on adding on Facebook. Earlier there was old version of Facebook but with the time, it's getting updated. For example- security and privacy settings have been enhanced and it has become more safe and protected now with the time. Also Facebook has come up with the new things in a small span of time.

4. Facebook traditionally made money in the past, and it is planning to make money in the future as well.

Facebook made money in the past by advertising as it is one of the source of generating revenue or we can say earning profit in the form of Likes and Shares.

5. It is planning to make money in the future by advertising as one of the main source of revenue along with the following-

• Jobs in Facebook
• News on Facebook
• Advertising Video
• Messenger Adds
• Instant Messenger Services
• Workplace by Facebook like Coworks, We works
• Cryptocurrency is also one of the plan to make money in future

So there are many ways that Facebook is planning to make money in future.

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