Chapter 1: The Evolution of Digital Currency

In recent discussions, the concept of 'Zuck Bucks' has emerged, a term that seems to be more of an internal jest rather than the final product name. It echoes a similar sentiment to Facebook Credits, which I once believed could rival Bitcoin in significance.

Meta's Foray into 'Zuck Bucks'

Although Meta has seemingly abandoned its Diem cryptocurrency initiative, the company is still pursuing financial products. This shift is noteworthy given the changing landscape of fintech, which now offers more compelling alternatives. It's hard to imagine that I once thought Facebook could eclipse the cryptocurrency realm. Reflecting back to December 2013, my perspective was quite different:

Money has captivated my interest for many years—not just in terms of accumulation, but as a concept. Currency is essentially a collective illusion, a store of value reliant on shared belief. My exploration of the history of U.S. currency during my studies at Vassar, along with my involvement in the "art or counterfeit" debate surrounding JSG Boggs, has deepened my understanding of money. My early experiences in Second Life, where I helped develop Linden Dollars, further fueled my fascination.

The idea of a universal currency detached from national identities was exhilarating. Yet, I must confess that my initial expectations about Bitcoin were completely misaligned with its actual trajectory. I anticipated a corporate-backed currency tied to identity rather than a decentralized and anonymous one, expecting it to originate from tech giants like Google or Facebook.

Katie Benner's recent article in Jessica Lessin’s The Information discussed Facebook Payments (paywall content). It highlighted a significant pivot in Facebook's strategy—from ambitious initiatives to a more streamlined approach focused on one-click payments using stored payment methods. This marks a stark contrast to the era of Facebook Credits, which aimed to facilitate in-game purchases, movie rentals, and more. When Credits were introduced, I thought they might pave the way for a global shadow currency, enabling value transfer between consumers and businesses seamlessly.

Why I Once Believed in Facebook Credits

1. Immediate Utility Beyond the Dollar

   For an alternative currency to gain traction, it requires initial market liquidity and validation. At that time, Facebook had the clout to mandate that all app developers on its platform utilize Credits, creating immediate use cases for consumers to favor Credits over traditional dollars.

2. Wider Third-Party Acknowledgment

   Once the gaming sector adopted Credits, other businesses on the platform began experimenting with them. For instance, movie rentals from Warner Brothers were made possible. The term "F-Commerce" was gaining traction, with various applications emerging to assist merchants in establishing Facebook storefronts.

3. Linked to Identity and Reputation

   Given Facebook's real-name policy, the prospect of integrating a reputation system with Facebook Credits was enticing. A robust transaction-oriented reputation system, akin to eBay's user ratings, could have been revolutionary, particularly if it had been combined with Facebook's sign-in capabilities for a streamlined payment process.

4. Inherently Global Nature

   As the first large-scale global social network, Facebook was positioned to handle international transactions. A frictionless proxy currency could have found utility across borders, even if it faced challenges within individual countries.

Despite the compelling possibilities, Facebook chose not to aggressively pursue this path. One has to wonder about the missed opportunities in exploring these "100 Year Hacks"—transformative innovations that could have reshaped the financial landscape.

Chapter 2: Insights from Zuckerberg's Vision

In the first video, "Zuckerberg's Surprising Change (and Why It Matters)," we delve into the shifts in Zuckerberg's vision for Meta and the implications for the future of digital finance.

The second video, "Meta's Mark Zuckerberg: Imperfect is Perfect," explores the nuanced and often unpredictable journey of innovation within Meta and its impact on the financial ecosystem.