Anyone heard about a certain Facebook Coin lately?? Yeah, we did too..
D4rkEnergY is once again back to spread Love and Wisdom to the Crypto Community. This time we will try somehting new, and we will combine a BTC-analysis with some Fundamental Analysis about Facebook's new Coin Project Libra. This might be huge, or will it?
Brief Project Analysis: Libra (Facebook)
TL;DR:
- Libra will serve the mass market as a stable coin backed by a basket of various fiat currencies.
- It will be the single largest bridge toward decentralized finance ever built.
- Potential to help millions of people avoid middlemen fees.
- Relative to Bitcoin or Ethereum, Libra isn't a 'real' cryptocurrency.
- Relative to fiat currencies, Libra is very much a cryptocurrency.
- It's built on an actual blockchain, most of the components are open-source and can be built on in a permissionless way.
- Has potential to become a medium-term replacement to any single government fiat currency.
- Plans to gradually become “moderately decentralized” decentralize with time.
The Overview
First of all, let's all try to zoom out for a second and realize how far we've come as an industry. Some of the most influential companies in the world are starting to enter the cryptocurrency space.
Latest entrant is Facebook, who are launching their own cryptocurrency Libra. The release of the Libra Network will have tremendous effect on adoption, as they are seeking to create a peer-to-peer global economy that can scale to their 2.38 billion monthly active users.
Facebook will likely act as a form of 'green light' for others who might have been wary of the whole cryptocurrency space. Facebook have been clever enough to create the Libra Association; a governing consortium made up of regulated entity partners who will provide the front-end platforms (onramps and off-ramps). As a result, Facebook is not required to become a financial entity.
Think about it for a second... Facebook has such a tremendous global reach, that if they manage to pull this off, a globalised currency running in parallel to other local currencies in every single country in the world, Facebook would become THE biggest, global central bank of the entire world.
Over the short and medium term, Libra will be able to capture marketshare and onboard literally hundreds of millions of people, who will be moving partially away from banks, and towards decentralized finance. It is arguably a bigger threat to the status quo of fiat more so than true crypto.
But how is it possible? Are governments going to allow something like this to happen? Something as unprecedented as a private tech giant, creating their own world currency?
Time will tell if they can actually do it.
Potential Losers?
Without a doubt it’s traditional financial entities. Large finance companies that have shown serious public interest in blockchain adoption are relatively few.
Now, the implications for people like you and I who might find ourselves using Libra in the near future, we should definitely not expect privacy or the true borderless standard that wee are used to with most cryptos. The governing consortium can explicitly block or revert any transaction.
There's also the fact that they will likely require KYC from all users, which now gives Zuck access to our documents and financial transactions. Is a company that has been factually proven to store users passwords in plaintext and battling serious trust issues with regard to privacy, capable of being in charge of our finances via a "cryptocurrency"? Prominent voices in elected positions would gladly see them broken up.
Risks to Libra:
Token price pegged to a basket of fiat based currency, such as the case with Libra, brings instant value and trust at least in as far as those currency’s Governments hold trust. But long term views show that this trust may be misplaced. We don’t have to look past 2008 for examples of how the inflation effects any major fiat.
Some of the Association Partners:
- Coinbase
- Stripe
- Xapo
- Paypal
- Mastercard
- Uber
- Lyft
- Spotify
- Ebay
- Anchorage
- Vodafone
- Andreesen Horowitz
- USV (Union Square Ventures)
- Thrive Capital
What do you think? Will it have any affect on Crypo Currency and Bitcoin? Will we see the Marketcap rise?
D4 Loves You <3
And remember to give a LIKE, if you appreciated the content! Thanks in advance.
D4rkEnergY is once again back to spread Love and Wisdom to the Crypto Community. This time we will try somehting new, and we will combine a BTC-analysis with some Fundamental Analysis about Facebook's new Coin Project Libra. This might be huge, or will it?
Brief Project Analysis: Libra (Facebook)
TL;DR:
- Libra will serve the mass market as a stable coin backed by a basket of various fiat currencies.
- It will be the single largest bridge toward decentralized finance ever built.
- Potential to help millions of people avoid middlemen fees.
- Relative to Bitcoin or Ethereum, Libra isn't a 'real' cryptocurrency.
- Relative to fiat currencies, Libra is very much a cryptocurrency.
- It's built on an actual blockchain, most of the components are open-source and can be built on in a permissionless way.
- Has potential to become a medium-term replacement to any single government fiat currency.
- Plans to gradually become “moderately decentralized” decentralize with time.
The Overview
First of all, let's all try to zoom out for a second and realize how far we've come as an industry. Some of the most influential companies in the world are starting to enter the cryptocurrency space.
Latest entrant is Facebook, who are launching their own cryptocurrency Libra. The release of the Libra Network will have tremendous effect on adoption, as they are seeking to create a peer-to-peer global economy that can scale to their 2.38 billion monthly active users.
Facebook will likely act as a form of 'green light' for others who might have been wary of the whole cryptocurrency space. Facebook have been clever enough to create the Libra Association; a governing consortium made up of regulated entity partners who will provide the front-end platforms (onramps and off-ramps). As a result, Facebook is not required to become a financial entity.
Think about it for a second... Facebook has such a tremendous global reach, that if they manage to pull this off, a globalised currency running in parallel to other local currencies in every single country in the world, Facebook would become THE biggest, global central bank of the entire world.
Over the short and medium term, Libra will be able to capture marketshare and onboard literally hundreds of millions of people, who will be moving partially away from banks, and towards decentralized finance. It is arguably a bigger threat to the status quo of fiat more so than true crypto.
But how is it possible? Are governments going to allow something like this to happen? Something as unprecedented as a private tech giant, creating their own world currency?
Time will tell if they can actually do it.
Potential Losers?
Without a doubt it’s traditional financial entities. Large finance companies that have shown serious public interest in blockchain adoption are relatively few.
Now, the implications for people like you and I who might find ourselves using Libra in the near future, we should definitely not expect privacy or the true borderless standard that wee are used to with most cryptos. The governing consortium can explicitly block or revert any transaction.
There's also the fact that they will likely require KYC from all users, which now gives Zuck access to our documents and financial transactions. Is a company that has been factually proven to store users passwords in plaintext and battling serious trust issues with regard to privacy, capable of being in charge of our finances via a "cryptocurrency"? Prominent voices in elected positions would gladly see them broken up.
Risks to Libra:
Token price pegged to a basket of fiat based currency, such as the case with Libra, brings instant value and trust at least in as far as those currency’s Governments hold trust. But long term views show that this trust may be misplaced. We don’t have to look past 2008 for examples of how the inflation effects any major fiat.
Some of the Association Partners:
- Coinbase
- Stripe
- Xapo
- Paypal
- Mastercard
- Uber
- Lyft
- Spotify
- Ebay
- Anchorage
- Vodafone
- Andreesen Horowitz
- USV (Union Square Ventures)
- Thrive Capital
What do you think? Will it have any affect on Crypo Currency and Bitcoin? Will we see the Marketcap rise?
D4 Loves You <3
And remember to give a LIKE, if you appreciated the content! Thanks in advance.