Twitter: Becoming A Financial Network And Showing The Path For Hive

Elon Musk was very clear about his goal to become the "Everything App". He also stated his intention to become the largest financial company in the world.

We should take these proclamations very seriously. When it comes to the future of finance, we are looking at it.

Since that he acquired Twitter, we discussed the merging of social media and finance. This was something that was basic for a network like Hive since money transfer is built into the blockchain.

Nevertheless, it is time to understand what Musk is doing and mirror it. He is doing in Web 2.0 what many feel needs to occur with Web 3.0.

The Next Coinbase?

Twitter (X) received a Rhode Island Money transfer license. This is required to send and receive money on behalf of customers. It includes both fiat currency and digital assets.

This brings the number of licenses up to 7.

In the United States, a license is required for each state that one conducts business. That means 50 will eventually be obtained.

Musk stated the system will only support fiat currency to start but the developers were instructed to build the platform to incorporate cryptocurrency at a later date.

One of the more interesting aspects to this discussion is the fact that Musk, if desired, could take on Coinbase. The license allow for the swapping of assets meaning the company could built its own exchange.

Coinbase reportedly has a little over 100 million users. X is around the 400 million mark, a number that is in the range of PayPal.

Essentially, we have the prospect of both these companies being disrupted by X.

PayPal has a market capitalization of around $70 billion while Coinbase is $20 billion.

How Big Is The Market?

It is unbelievable how big this market is. For those thinking that Musk was destroying Twitter and it was going out of business, think again. He is simply looking to tap into numbers that make social media look like a niche industry.

Here is a screenshot from the Federal Reserve Services wesbite showing the annual transfers through the FedWire system:

The value of the transfers originated was over $1 quadrillion. Think about that for a second. We are no longer discussing things in billion or even trillions. This is 1 quadrillion dollars.

We certainly are dealing with some large players as the average transaction is over $1 million. However, this does show us exactly what type of potential is out there. If money can be pulled from the commercial banks as some keep it house in their Twitter wallets, this shifts the activity to Musk's network.

If cryptocurrency gets into this game which I believe stablecoins will, Twitter is in fine position to benefit.

Hive's Path

To me, the path going forward for Hive is clear.

Mirroring what Musk is doing is a strong course of action. Whatever advancements he is making, he will always be Web 2.0. The fact he is applying for licenses shows how he is accepting of regulation and the present financial system. He has no concern about the tenets of that cryptocurrency espouses.

Simply put Musk is trying to alter the financial intermediary that people deal with. There is no elimination but, rather, a substitution. Instead of PayPal, his hope is people use Twitter.

For the end user, it is the same premise.

We know Web 3.0 offers something different. No matter how benevolent Musk could be, he is still a dictator on that realm. At any time, one's account can be closed. This means not only is the social media history at risk, so are the assets in the wallet.

This is going to be a hard lesson for many to learn.

Hive offers something completely different. The one advantage this ecosystem has is that we can use social media as the Trojan Horse. This is an idea long espoused where people show up for social media engagement, get some rewards, and then we offer financial services tied to the digital assets they are receiving.

It means we have to have an expanded vision of the areas of focus. Social media is important yet not at the expense of finance. The reverse is also true.

If you believe the merging of social media and finance is occurring, then it is easy to see how Hive stands out. Other networks do not incorporate both. After all, we know the only social media tied to most cryptocurrency projects is the activity they do on YouTube and Twitter.

The Game Is Changing

It is my prediction that Musk is going to suck the value out of the traditional social media companies. The moat that they offer is dwindling. We already got some insight into the nature of this fight as they all started to add features that make the others stand out.

This will continue.

However, it is crucial to realize this is not a social media fight. It drifted into other realms. Payments are only the first layer. Do not believe for a second that is Musk's final vision. It is easy to consider where this is going. When one sets sights on something bigger, moving past the thinking of the present institutions is easy.

Hive needs to acquire this mindset. Social media is simply the onboarding tool to a financial network that is constructed. Here is where the former is the Trojan Horse.

Ultimately, this comes down to the question surrounding decentralized finance (DeFi). Who is going to build it and how will it gain users?

Here is where we are back to what Musk is doing. Of course, he has no intention of developing DeFi. His pursuit is TradFi all the way. Nevertheless, this does provide the model for Hive but in the decentralized realm.

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Posted Using LeoFinance Alpha