Will Facebook’s Libra Effect Bitcoin? – sachin sharma
As you might be aware of the fact that Facebook has launched white papers for its cryptocurrency that goes by the name ‘Libra’ in June 2019. Many are believing it to be a game changer in the field of cryptocurrencies, but overall, it has been received with rather mixed reviews by all. Some think Facebook wants to do a ‘Bitcoin’ again and that is why they have come up with a new player in the market.
Well, we can’t say for sure as to with what intention does Facebook brings a cryptocurrency to us at a time when we already have a number of them. But, is it true that Libra will affect Bitcoin? Is it true that Bitcoin’s prices may go down because of Libra?
These are the questions lurking in the mind, let’s start a conquest for getting the answers as to how will Libra effect Bitcoin?
Difference Between Libra and Bitcoin
Just because they both are cryptocurrencies, doesn’t mean that they are the same. There are a few rigid differences between the two.
Bitcoin is a decentralized network which does not require any permission or censorship to function. In short, there is no regulatory or controlling body over Bitcoin. That is why countries have banned it, owing to the illegalities it carries.
On the other hand, Libra is operated, controlled, and managed by a group or rather a consortium of large corporations. Even if it is launched, it will be subject to regulatory pressures and management actions around the world.
The Supply of Bitcoin is done through a predetermined and already well-settled apolitical supplyc-chain. While Libra would require a pool of government-issued currencies for its supply.
Long before the actual launch of the currency, the associations and people around the world are putting forward their observations of Libra. Most of them are not what Facebook would like. The French and USA finance experts have advocated halting the launch of Libra.
This type of oppose was not seen for Bitcoin though. The Libra programme has already received such a negative response that it may not be able to restore the hype.
Libra has a well-identified set of parties and people behind the curtain, the network which will supply Libra. This makes tracking them all very easily. Bitcoin never had any such issue. What is more important is that people will not go for the item where they have a fear of getting caught or prosecuted.
Suppose the network gets to operate without any permission or without any boundation. Next thing you know, the regulators have chained you. This may be one of the biggest set-backs for Libra.
Since you can’t work in a permissionless manner, should Libra be categorized as cryptocurrency? After all, working without permissions is the biggest determinant for a cryptocurrency in the first place. What difference will there be between Libra and an official currency then? Moreover, the kind of charges facebook has received regarding the selling of private data has all the eyebrows raised as to ‘What if Facebook does it again with Libra’?
To sum up, Libra appears to be just another addition in the legal financial system or another form of official currency. By this, it won’t affect Bitcoin much as the biggest USP of Bitcoin is the apolitical and invisible exchange medium. So, not a good conclusion for Libra.
Published at Sat, 13 Jul 2019 11:16:39 +0000
Bitcoin Pic Of The Moment
Video Stills from Bitcoin Party on the lsland in the Park, Tanjin, China.
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