Pandora's box: How Facebook's Project Libra the Bitcoin Space changed

Facebook's Project Libra rises in the around the best money. What can we expect from Libra and why Bitcoin investors with Confidence to the Launch of can look.

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20. June 2019BTC$9.350,00 2.44%part Facebook Twitter LinkedIn xing mail

Long ago was it that the crypto-sector is so much media attention was given to how this week. Even if it has only needed a global company such as Facebook, crypto-currencies again back on the Agenda of the media, could be Libra also provide Bitcoin & co. with new momentum. What can we expect from the new payment network.

Why Bitcoin investors, Libra offers

Libra is a Stable Coin-the project should be. As such, the Token does not compete with Bitcoin. Because while Libra is covered by a basket of currencies and receive Bitcoin through the ascribed value. A consequence of the currencies, as the greater volatility of Bitcoin compared to major Fiat like the US Dollar or the Euro.

Consequently, David Marcus, who designed Libra leader referred to Bitcoin as an Asset.

Many want to pit Libra vs. Bitcoin. In my mind these two are not in the same category. BTC is a decorrelated (investment) asset. Libra is designed to be a stable medium-of-exchange. I have been, and remain, a fan of BTC, but for very different purposes.

— David Marcus (@David Marcus) June 19, 2019

This is right as far as that Libra for currency speculation is inappropriate. Finally, the currency basket to ensure the greatest possible stability of the value. To conclude that Bitcoin is only used as a store of Value, is however, not tenable. Finally, Bitcoin have already been processed today, as the only truly decentralized Peer-to-Peer payment network of nearly two billion dollars to transf-generated value.

Libra puts a focus on the means of payment function

In contrast to Bitcoin Libra is primarily a payment network and to compare its functioning of the most with PayPal. Unlike PayPal Libra are, however, a Coin is leaving the monetary policy to the Central banks, which determine the fortunes of the underlying currencies. Since this is likely to be mainly due to the US dollars, Libras value directly from the Federal Reserve Bank (FED) - dependent.

This is diametrically opposed to bitcoin's value monetary promise as a Crypto with a sovereign, algorithm, monetary policy, and above all apolitical. While Bitcoin rides on the long path, and only by his qualities as a money with a established Fiat currencies in competition enters, occupies Libra, the abbreviation by it remains in the old System, and – at least indirectly – to the US Dollar and other major Fiat currencies binds. Whether Facebook will be able to generate the necessary confidence, it remains to be seen.

As a means of payment, Libra is still highly interesting. What is the meaning of payment networks can develop, has PayPal proven. One could even argue that Libras Design PayPal is superior. Finally, Users need to use a Bank account, to be able to with Libra figures. So that 1.7 billion people do not have a Bank account belonging to a potential audience of Libra. The crypto-Narrative of the financial inclusion begins to take shape.

Neither decentralized nor independent

Calibra, the Facebook subsidiary, which controls the Libra network, a number of renowned companies from diverse industries such as MasterCard, Andreessen Horowitz and Uber. Each of the partners shall not operate a network node; by 2020, 100 Nodes are to be in operation. Here is the next difference to Bitcoin is revealed: Libra is not decentralized. Although decentralization can be clarified a question of degree and not absolute, would speak to no one with only 100 Validator Nodes of a sufficient decentralization. In contrast, the Run a Bitcoin Full Node is costs apart from the electricity – free. In Libra, one recognizes once again that decentralization is non-trivial.

Currently, you have to note, however, that BTC is the only functioning decentralized payment network in the world.

The struggle for money

Satoshi has opened the Pandora's box. Since the publication of the Bitcoin White Papers, the cat is out of the bag and is not going to disappear also. The idea is to separate money and state from each other, is so seductive, that Facebook in the race to get ums best money.

That, the upstarts need to count on plenty of opposition from the Central banks of this world, it is not surprising therefore. As The Block is reported, has been looking for the FED the conversation with the Calibra already. Furthermore, we already reported on the 19. June on the cancellation of the French economy Minister Le Maire in the direction of Facebook and Libra. The project was "not a sovereign currency," the Minister said.

Here is another sword of Damocles hanging over centralized Altcoins such as Libra: the regulatory civil war is revealed. Real decentralization means, finally, that governments are de facto powerless, the projects shut down. So there is no legally tangible entity that operates Bitcoin. Companies such as Facebook, MasterCard, and Ebay you can, however, get hold of the regulator and in the worst case, States can prohibit Libra simply.

this advantage of the properties of Bitcoins will be liable should by Facebook's push to get new presence. In all the relevant sizes Bitcoin Libra is superior in quality. Not least because of Facebook-Coin is regarded as a gigantic Onboarding opportunity for Bitcoin.

A paradigm shift

Private money is not a vision of the future. The government's money monopoly also represents Libra radical in question. To the adverse reactions of the Central banks to recognize that they will be taken seriously. It is precisely this kind of serious competition to Fiat money is that Satoshi wanted to bring about. May the best man win Coin.

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