Will Twitter get into cryptocurrencies?

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

Elon Musk has for some time continued to show his interest in cryptocurrencies: tweets on bitcoin and dogecoin, investing in bitcoins of some of the cash from his company Telsa … Elon Musk’s takeover of Twitter for a sum of 44 billion dollars questions the connections between the social network and cryptocurrencies.

And a question arises: Will Twitter get into cryptocurrencies? The social network could go further in the use of cryptocurrencies to improve its platform.

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

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

Twitter could become a place to exchange value

The connection between Twitter and cryptocurrencies seems logical, knowing that a cryptocurrency can not exist without a network, like bitcoin on the Bitcoin blockchain, and why not … without a social network.

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

Ads paid in cryptocurrencies

Specifically, Twitter was able to balance itself with ads paid for in cryptocurrencies, though Elon Musk has said he does not want to make the social network a necessarily profitable business.

“Cryptocurrency would allow disintermediate and thus improve capital efficiency beyond speed. Being 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, ”emphasizes Julien Maldonato.

Earlier this week, Stripe announced a partnership with Twitter that allows certain users of the social network to be paid in cryptocurrencies to monetize their content. Twitter creators, such as influencers, will be able to use the “paid spaces” and “super follows” features to be paid in USD Coin, a stack coin (NDRL: a cryptocurrency supported by a fiat currency).

In addition, since the announcement of Elon Musk’s arrival at the helm of Twitter, Dogecoin, this dog-headed cryptocurrency, has risen 24% in 24 hours. From there to becoming Twitter’s currency? It is not so secure as the supply of this cryptocurrency is not limited unlike bitcoin.

“This raises questions about its value in the medium term, it can be devalued significantly. Dogecoin would have the same problem as the dollar, it risks being devalued, so it may not be the right candidate to be the” most used asset in the management of The value of Twitter. However, it is not impossible: the dollar, which is also subject to devaluations, remains the most widely used currency on earth, “the expert emphasizes.

In addition to the use of a cryptocurrency on the social network, could Twitter have bitcoins in its treasury in the same way as Tesla? The scenario seems likely. “Today, Twitter operates on the dollar, but if inflation continues to be so strong and the dollar devalues, this could pressure the European Union to make investment decisions towards an asset like BTC,” stresses Julien Maldonato.

Twitter’s interest in crypto is not new

Last November, The Financial Times unveiled the creation of the social network of a team dedicated to the blockchain, called “Crypto Twitter”, whose ambition is to “establish the strategy for the future of cryptocurrencies on Twitter”. Twitter’s interest in cryptocurrencies is no coincidence. Its founder Jack Dorsey got closer and closer to blockchain and web 3, to the point where he left the company last November to dedicate himself to it.

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