Will Libra Replace Bitcoin?
 August 10, 2019 by Jack Anderson

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December 2017. The crypto frenzy is at its maximum. A single Bitcoin is worth $19,000... before dropping to around $3,000 a year after. But the crypto market is used to the ups and downs, to such an extent that it almost became a feature. But over the years, it has become obvious that Bitcoin will never become a real life currency. As said countless times, who would want to pay for a coffee with Bitcoins when the price can surge 20% in a single day? And who would want to receive his salary in Bitcoin when the price can also drop 20% in a day as well. Makes you reconsider the beauty of the concept, right?

Behind the scenes, Mark Zuckerberg thought he could do better and asked his team to work on a secret project. Called Libra, the yet to be released coin is a digital coin that aims to do exactly what Bitcoin does wrong, meaning trying to be a stable coin in the far west world of digital assets.
In its white paper, investors will realize that the biggest difference is that the coin will be backed up by real financial assets, something Bitcoin does not have. This could potentially allow millions of people on Earth to enjoy banking with a single digital currency that wouldn't drop significantly in a few seconds. To say it otherwise, Bitcoin has become a form of digital gold based on thin air. Whether there are 21 million coins or 21 billion has no impact. People buy or sell it only because of its name, the same way people would buy tulips in the crazy Dutch tulip mania from 1600's.

Yes, a single Bitcoin could be worth a million dollars or a cent. As Ripple's CEO Brad Garlinghouse mentioned multiple times, the future of digital assets will be based on the real life case of the asset, not just by its name.

Obviously, we are nowhere near the maturity level that crypto desperately needs in order to become mainstream. Aimed to be released in 2020, Libra has, at least on (white) paper, the ability to do that. Once again, only time will tell.

What do you think about Facebook's jump into the world of crypto? Do you believe it has the power to take the number one spot? Tell us below.

 Comments (1)

By CryptoGirl on 2019-08-10 19:09:47 ET
I cannot wait for Libra! I really believe in a world where crypto will live side by side with fiat currencies. Don't think for a second that fiat currencies will disappear. But XRP and Libra will live amongst them. That's a huge difference from all the other worthless and empty coins (yes, I said it! :).

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