Tuesday, November 12, 2019

Fundstrat: Facebook’s Libra Will Be Mainly Used to Purchase Bitcoin

Adedamola Bada
I'm Damola, a computer engineer from Obafemi Awolowo University. A crypto enthusiast, marketer, and writer who is seeking to achieve career excellence through hard work and positive contribution to the organization that aspires for excellence. Contact me on [email protected]

Facebook is planning to launch Libra, a cryptocurrency it hopes will “transform the global economy”. The company intends to share control with a consortium of organizations, including venture capital firms, credit card companies, and other tech giants. Facebook also plans to launch a subsidiary company, Calibra, which will develop products and services around Libra.

Calibra is where Facebook intends to make money off the cryptocurrency starting with the launch of its digital wallet. Libra will be available as an intermediary for transferring traditional currencies and also inside the social networking Apps WhatsApp and Facebook Messenger.

What Libra Could Mean to the Crypto Ecosystem

The announcement of Libra was followed by an immediate response from regulators due to Facebook’s known reputation for its towering goals, and disregard for privacy and intensifying immense political and social issues throughout the world. There will be lots of questions awaiting the company ahead of Libra’s launch in the first half of 2020.

Several comments have been made on Libra since Zuckerberg made available its details earlier this week. There could be greater implications as the world’s largest social media network attempts to tackle the planet’s biggest banks even though it showed no effect on the crypto markets.

The awareness of cryptocurrency will skyrocket when the digital payments system is made available on the social networking platform. This is due to the fact that Facebook has over two billion users, even with millions previously considering cryptocurrencies to be for those considered to be extremely tech-savvy.

Instant payments made at virtually no cost, without involving Banks and expensive foreign exchange intermediaries, will be made possible to people who didn’t know it was possible. Although, Bitcoin and other crypto assets function for exactly that without Facebook overlooking all transactions details.

Max Keiser, the host of the Keiser Report on media channel RT, has a similar opinion and, like many, believes that Bitcoin will ultimately gain from Facebook’s dab into crypto assets. He stated;

“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.”

BTC hashrate is knocking on the door of an all-time high, adding to the premise that the gap from price all-time-high has just been reduced to more than high. The fact being that Bitcoin is up almost 150% since the beginning of the year and it’s starting to look like a winner.

Tom Lee, the Fundstrat co-founder, and Global Advisors’ research chief, believes Libra will be a good thing for bitcoin saying:

“Libra pretty much destroys anyone who believes “blockchain not bitcoin”

– @facebook is launching a crypto currency, albeit a stable coin

– even traditional fiat’s primary use to buying financial assets (96:1), hence, #Libra primary use likely to buy $BTC”

This means that Bitcoin is unaffected with an intraday high of $9350 being hit a couple of hours ago and markets are still looking positive. The awareness of Crypto is already way higher than that in 2019 than it was in 2017 and looks to increase some more with Facebook dabbing into the crypto world.

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