I see a storm coming concerning Bitcoin vs. Facebook Libra, one of the coins is going to be the dominating cryptocurrency on the market.
I don’t see Zuckerberg coming into this space to be second best. So yes…there is a storm brewing and soon we will see who is the top dog.
What is it about Bitcoin after all?
Being the pioneer cryptocurrency around the world is no small feat. It’s safe to say Bitcoin sets the standard for cryptocurrency around the world. Crypto is expected to be uncensored/uncensorable, very private and eventually, profitable.
Some other advantages keep individuals and businesses endeared to Bitcoin and the Bitcoin wallets.
Bitcoin rates are relatively low; lower than most bank rates around the world and sometimes absolutely free.
It is as universal as cryptocurrency can get: it can be used in any country in the world. It has no location or transaction-based restrictions.
The Bitcoin system has see-through transparency. Every tidbit of every transaction carried out is recorded in the form of a Bitcoin address and made visible to users.
Bitcoin operates an open-sourced system. Individuals and organizations have capitalized on this to produce imitations of the Bitcoin system.
With rather sharp, impressive innovative changes, some with slight variations and others with no significant modification at all.
In all, the system allows both understudy and attempt to improve the Bitcoin and Cryptocurrency systems.
Why Traders are Optimistic about Libra?
One of the most expressed worries of cryptocurrency critics is the currency’s lack of stability and Facebook/Calibra Association will be a stable coin, backed by bank assets in Switzerland. All Libra transactions will be compiled in the Blockchain Libra system.
Facebook/Calibra Association will be a stable coin, backed by bank assets in Switzerland. All Libra transactions will be compiled in the Blockchain Libra system.
Cryptocurrencies that are decentralized and separated from any organized financial institutions or regulations are flexible. Much more flexible than conservative finance experts are willing to relate with.
The Libra currency, however, provides a remedy for this problem: a relatively fixed exchange rate for some of the world’s strongest fiat currencies, including the USD and Euro.
Forex traders and investors would find this a safer option than the average cryptocurrency, as the risks and possible results of wild fluctuations are largely mitigated.
Another strong point for Libra is the simple fact that it is owned and run by a social media platform, Facebook, for that matter. Facebook has been undergoing a lot of internal security problems.
The inevitable result being an intense backlash, it still goes without saying that the platform is somewhere at the top of the list of widely-used social media platforms around.
Will Facebook’s Libra help Cryptocurrency?
While good publicity is in itself applause-worthy, it is not all that Facebook would contribute to the success of Libra.
A sizeable percentage of the world population is still out of touch with financial technology, and the gap gets even more extensive as more innovations keep coming up. Below are a few facts relevant to this subject:
According to Statista.com, a whopping 63% of Americans were unfamiliar with FinTech as of 2018.
According to an Ey (Earnest and Young) journal of financial Perspectives in 2015, an average of about 15.5% of active internet users online are FinTech users.
This implies that about 84.5% of the world’s population are either totally unaware or oblivious of financial innovations or have under-exploited the opportunities therein.
Statista.com speculates that there would be about 2.77 billion (about 35% of the world population), active users of social media, worldwide.
According to Zephoria.com, there are 2.41 billion Monthly Active users and 1.15 billion mobile daily active users of Facebook as of June 2019.
Based on the above statistics, it is inferable that Facebook would provide a platform for a substantial percentage of the world’s population to interact with crypto and FinTech at large actively.
In turn means increased chances of economic improvement for many users and more profit for FinTech organizations and of course, room for even more daring innovations within the field.
Analysts say this innovation has prospects of spreading-further pushing governments and relevant financial institutions to, at the very least, attempt to improve on their economic systems.
Libra is expected to raise the bar as no other cryptocurrency has done.
It is, however, noteworthy that there is intense questioning as to the actual decentralization of Libra.
Facebook is a company that is centralized in every sense of the word, how can they guarantee that a daughter institution will be as decentralized as crypto should be?
Wouldn’t Facebook be opening Libra users to all the risks associated with a database?
Critics have mentioned that this might be another calculated attempt to make users ignorantly agree to have all their financial affairs rudely intruded in.
In conclusion, therefore, for stakeholders who seek a level of ‘safety,’ Bitcoin may be a better option. It is, however, safe to say that Libra is going to be quite an exciting adventure.