A lot of opinions spread out the last days about the outcome of Libra and the impact the Facebook crypto will have on Bitcoin and the crypto world in general. Despite the skeptics, the impact that Libra might have on cryptocurrencies does not seem that bad.
At the announcement of the Libra’s whitepaper, bitcoin was hovering above $9,000 and seems that the news did not have any effect for a sudden move. Maybe the BTC price already got at high levels ahead of the Facebook announcement.
What is Libra and how it is going to affect Bitcoin?
In 2017 we had a mega rally in crypto with Bitcoin hitting the ATH at $20,000 and, many think that this was caused by a stablecoin called tether.
According to the announcement, Libra will be a stablecoin backed from a basket of assets.
It is amazing how Facebook wants to picture Libra like an innovation, saying “Send money by text”. Other companies like WeChat has been doing this for a decade in Asia.
On the other hand, Bitcoin has more than 2 billion users and adding a wallet to all these accounts and launching a coin would get a lot of attention. But offering a payment system that offers to bypass the banking system and the high intermediary fees third parties charge to process payments it is not an innovation because Bitcoin and other cryptocurrencies can do that better than a corporate centralized coin.
And Facebook has been caught many times selling users data to companies for commercial purpose and is not a reliable company to trust them your money.
Now the question poses itself. Isn’t Libra’s main purpose to accumulate Bitcoin?
It is a thesis that many analysts think that it might be true. Fundstrat co-founder and bitcoin bull Tom Lee thinks that the main purpose of Libra is to buy Bitcoin.
Libra pretty much destroys anyone who believes “blockchain not bitcoin”
– @facebook is launching a crypto currency, albeit a stable coin
— Thomas Lee (@fundstrat) June 20, 2019
Others think that Libra will create a lot of traction for Bitcoin adoption while creating a large scale of awareness about crypto and driving prices higher.
It’s built into the protocol’s genesis block that eventually a heavyweight like $fb would take on BTC. This increased awareness and appeal to would-be potentates will, of course, drive the hashrate to new highs, leading to new ATH for BTC price. Zuck is Satoshi’s useful idiot.
— Max Keiser, tweet poet. (@maxkeiser) June 18, 2019
Comparing 2017 to 2019 it seems that crypto awareness now is much higher than in 2017. Bitcoin price is up nearly 150% this year and already has reduced the gap to ATH to just over 50% and Facebook is only adding fuel to the fire. It wouldn’t be a surprise if we soon can see $15k.
Do you think Libra will have a positive or negative effect for crypto?
Feel free to express your opinion in the comments below.