Libra Could Make Or Break Bitcoin

: Getty


Facebook’s digital currency, Libra, is a mixed blessing for Bitcoin and other digital currencies—it could make or break them.

Libra has already created a positive social media buzz for digital currencies, sparking a strong rally, which sent Bitcoin firmly above $10,000, again. “Libra is going to continue to gain attention, not only within the crypto industry but in mainstream media, and its development is causing major financial institutions to take notice due to the scale of the social network’s audience,” says Temtum founder and CEO, Richard Dennis MSc.

Google Search Results For Libra, Bitcoin, XRP, and ETH*

Coin Searches
BTC 656mil
XRP 280mil
ETH 370mil
Libra 224mil

*As of 6/21/19, 8pm

7d Price change for major cryptocurrencies*

Coin %7d change
Bitcoin (BTC) 25.70%
XRP 12.47
Ethereum (ETH) 17.22
Litecoin (LTC) 4.12

*As of 6/22/19, 7AM ET,

Number of cryptocurrencies that Advanced/Declined in the top 100 Ranks*

Cryptocurrencies Advance/Decline Number
Advance 64
Decline 36

*As of 6/22/19, 7AM ET,

And the buzz could become stronger as Libra could help the masses become familiar with digital currencies. “Libra is the biggest corporate endorsement of cryptocurrencies yet,” says Clement Thibault Senior Analyst at global financial markets platform “Libra  has the potential to introduce billions of potential users to the idea of value transfer via blockchain. This should therefore benefit Bitcoin as well.“

Meanwhile, Libra could undermine the very basic promise of Bitcoin and other digital currencies: decentralization—freedom of control from big governments, big banks, and big companies, that is.

“As reports have made clear, Libra will initially be controlled by some of the world’s largest companies, who will profit directly from the use of this currency,” explains Dennis. “We’ll see it integrated into existing financial structures via VISA, Mastercard and PayPal and see if used by the likes of Uber. Worryingly, this is exactly what cryptocurrencies were created to avoid and take back from brands like Facebook.”

Associating digital currencies with big companies could turn the positive buzz that surrounds Bitcoin into negative buzz.

That could turn away the “early adopters,” a key group for every product to reach the “tipping point,”  the mass user market.

Meanwhile, Libra is already attracting the attention of US government regulators, who have the power to crush it, and crush Bitcoin and other digital currencies along the way, too.

[Ed. note: Investing in cryptocoins or tokens is highly speculative and the market is largely unregulated. Anyone considering it should be prepared to lose their entire investment. Disclosure: I don’t own any Bitcoin.] 



Articles You May Like

Department stores face another squeeze. This time, with store credit card revenue
Sierra Space CEO unveils new satellite product ahead of Dream Chaser launch, possible IPO
What Biden’s new student loan forgiveness plan means for your taxes
Top Wall Street analysts like these 3 stocks for their growth prospects
StubHub eyes summer IPO, seeks $16.5 billion valuation

Leave a Reply

Your email address will not be published. Required fields are marked *