Facebook made big news this week, as they announced they will be developing a cryptocurrency named Libra. While that might seem like bad news for Bitcoin, many people believe it will actually be a good thing for the cryptocurrency.
Facebook made big news this week, as they announced they will be developing a cryptocurrency named Libra. While that might seem like bad news for Bitcoin, many people believe it will actually be a good thing for the cryptocurrency. The price of Bitcoin has surged past the $9,000 mark this week and the magical $10,000 mark is firmly in sight. What will Facebook’s launch of Libra mean for Bitcoin
Libra Could Drive Bitcoin Price Higher
Facebook released details on Libra on Tuesday and there are some definite differences between Libra and Facebook. Libra will be managed through a partnership of a number of companies including Visa and Uber. The value of Libra will be guaranteed by Facebook and its partners, and that membership is reported to cost $10 million dollars. Libra will have the benefit of a huge database of users. “They’re in a great place to stimulate demand for the coin in a way we haven’t seen anybody do”, said Jalak Jobanputra, founder of venture-capital firm Future-Perfect Ventures to the media. “This could be the first broad-based use of a digital coin as a payments mechanism”.
Bitcoin is still not in the mainstream of thought for many people, but that should change with Facebook introducing their own cryptocurrency. And while Bitcoin won’t have the advantage of a huge database of users, it will have a major advantage over Libra in that it is not controlled by anyone. Libra will be controlled by Facebook and their partners. That is not the case with Bitcoin and it could be a big reason why Bitcoin takes off when Libra is introduced.
“Facebook is about to introduce hundreds of millions, maybe billions, of people to the concept of cryptocurrencies”, said Andy Bromberg, the founder of CoinList to the media, “It’s hard to think of a better accelerant". Bitcoin is not controlled by any bank or central authority and that will a major difference between Bitcoin and Libra.
Libra is expected to launch in the next 6 to 12 months. There are more than two dozen companies already on board in support of Libra and Facebook hopes to raise $1 billion from those partners and future partners. Facebook has big plans for Libra and they hope that it will change the financial world. "If you fast forward a number of years, consumers all over the world will have the ability to access the world economy".
Facebook executive David Marcus said to the media. Libra will be backed by a reserve fund held in real-world currencies, so there will not be the wild price swings that have been common with other cryptocurrencies.
Facebook has said that Libra will be run by a nonprofit called the Libra Association that will be headquartered in Geneva, Switzerland. The nonprofit will oversee Libra and its use and it will be regulated by the Swiss government. A subsidiary was also created called Calibra that will be a digital wallet that people can use to buy, send and use Libra.
Libra Privacy Concerns
The biggest concern with Libra will definitely be privacy. Facebook collects a lot of data about its users and its history of protecting privacy has not been that good. Bitcoin is the opposite, as it is not controlled by any governing authority and while not completely anonymous, is pretty much so. Facebook is currently under federal investigation over its privacy practices. Creating its own currency is definitely not going to go unnoticed by the government and regulators.
Many businesses have been using Bitcoin as a reliable way for their customers to send and receive money for quite some time. Most of the customers at online sportsbooks use Bitcoin to make their deposits and withdrawals. The future is bright for Bitcoin and the latest news that Facebook will be rolling out their cryptocurrency called Libra should only help Bitcoin going forward.
Check out the latest Bitcoin deposit options available at the online sportsbook.