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Bitcoin vs Facebook Libra

Bitcoin vs Facebook Libra

 

If you haven’t heard, Bitcoin is back in business. Surging to $11,000 today, the cryptocurrency has the largest market share, with an almost 200 billion dollar market cap. What does this mean for the future of money and digital money? How does Facebook Libra, Facebook’s own crypto-esque settlement system (no reported blockchain).

 

Bitcoin Is Back

Bitcoin is back after a hiatus. Futures contracts expired yesterday and institutional investing is flowing into Bitcoin today. This tells me that A: Trade wars are taking a negative effect on the economy and as a result people are moving out of stocks. B: Sentiment has totally shifted on cryptocurrency due to Facebook Libra legitimizing it in a sense.

Either way this is an opportunity to make some serious income:

Buy  How To Make Amazing Passive Income In Bitcoin to see how I’ve been making money this whole time that Bitcoin and cryptocurrency was “dead” according to many people.

Also read

3 Ways To Actually Profit With Cryptocurrency

 

Bitcoin has long represented the decentralized way to transfer value across borders, across oceans, discreetly (not truly anonymously though).  More an more it appears to have mainstream approval and validation.

Bitcoin might become the new global currency or reserve currency. If an economic downturn is imminent and all of these institutions are running to it, that might be the writing on the wall.

I’m not here to alarm anyone but flexibility and the ability to entertain new information is a major key to success. So it’s something to consider. If you haven’t even considered Bitcoin or cryptocurrency before, it may be time to consider it as a way to make or store money.

 

Facebook Libra

 

Facebook (not a fan) announced Libra this week as their quasi crypto stable coin they will be using for Facebook payments and settlements.

I can’t say I’m a fan of the idea, being that Facebook is a DARPA creation ( Life Log) that had a fresh young face slapped on it. But really Facebook is nothing more than a massive data mining operation, which was the self-admitted intent of Life Log.  

So with them creating their own pseudo crypto, it legitimizes cryptocurrency in the eyes of the laymen and public. So it’s beneficial to cryptocurrency in that way. On the flipside, it seems like a way to trace monetary transactions.

Whatsapp belongs to Facebook and will utilize Libra. When Whatsapp was sold to Facebook, there was a lot of disappointment. Because Whatsapp’s road to fame was the end to end message encryption. Millions, maybe billions of people use Whatsapp to communicate overseas. People in the U.S. use Whatsapp to communicate to their relatives in the Caribbean, Africa, Asia, and beyond.

Now with Libra coming it will give these same people the ability to send money (theoretically) across seas via a pseudo cryptocurrency.  At what cost though? That’s what I’m interested in seeing.

How does Facebook data mine your financial transaction habits via Libra? If at all?

Will Facebook Libra negatively affect the cryptocurrency market?

Facebook Libra already has dozens of corporate partnerships lined up, with everyone from Lyft to Paypal to Ebay. If Libra can pay for all of these things where does that put cryptocurrencies like Litecoin? Even RIpple?

I’m not sure exactly. But I do know that Bitcoin’s original intent was to avoid the type of corporate partnerships Libra is engaging in.  Facebook’s record on privacy is horrific on top of that. Which is something Bitcoiners were and still are concerned about. This quote is from a CNN article this week:

Because blockchain platforms provide a layer of anonymity to cryptocurrency users, concerns about money laundering scams and the ability to divert money to fund terrorism have come up with other digital currencies. Facebook said it developed a process to verify the identity of Libra users on its own platforms in order to mitigate those risks.

Even though exchanges now push for KYC and AML, there is still the ability to engage in wallet to wallet private transfers. With Libra wallet to Libra wallet transfers, everything moved has an identity tied to it and those habits will be logged by Facebook.

 

Conclusion

 

Bitcoin is still the king and will likely remain the king, even after Facebook Libra is released. They address two different demographics. A side-effect of Facebook Libra probably will be that other cryptocurrencies are legitimized. Negative effects of Libra on Bitcoin could be that laymen users just avoid cryptocurrencies altogether. We will have to monitor the progress.

In the meantime, I’ll continue to make money with cryptocurrency and if there’s a possibility to do so with Libra, I’ll do that as well. Hopefully you do too.

 

 

 

 

 

 

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