Why Facebook Inc Should Fear This Social Media Kingslayer
I don’t expect this optimistic dynamic to change anytime soon. Those that already feature FB stock in their portfolio should enjoy many years of steady gains. At the same time, Facebook is a technology company too, and this sector is incredibly volatile. Even FB, as great as it is, cannot afford to be complacent.
A major, potential risk to the social media giant’s dominance is an open-source network called Steemit. What makes Steemit distinct from the litany of social media garbage is that it runs on its own blockchain-powered cryptocurrency called steem.
Yahoo Finance‘s Daniel Roberts explains it like this: “Steemit users publish a blog post — it could be any length, any topic at all — and other users can “upvote” it. The twist: Every upvote represents a small amount of steem power. Think of steem power as a representation of influence, because the more you have, the more power your upvote has to move someone else’s post up when you upvote it.
With Steemit, you get paid to do what you normally do on Facebook for free. If the platform did take off, FB stock would genuinely become troubled.