Facebook's crypto, Libra

in #libra6 years ago

Facebook disclosed the first announcement about its long-anticipated, social media based cryptocurrency, called Libra. There are too many takeaways and opinions on that, I share you some and mine too.

Eric Voorhees is the founder and CEO of ShapeShift, a cryptocurrency trading platform. He stated his thoughts on Libra, the good and the bad, which I think worths to read. He may be a bit optimistic on the subject, I admit, but reasonable and rational.

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He says, first, zoom out for a second and realize how far this industry has come. The biggest companies in the world are now launching cryptocurrencies.

But for me, who am against FB for its previous performance and policies, Libra doesn't sound like a Cryptocurrency!

Eric says: Relative to PayPal or to the US dollar, Libra is very much a cryptocurrency. Relative to Bitcoin or ZCash or DAI, Libra is not all that crypto.

Lots of blockchain projects will be created and played with while the world rebuilds the financial system upon this new technology. Different assets will serve different markets, at different times, in different ways.

Libra will serve the mass market, and be the single largest bridge toward decentralized finance that has ever been built. Prior to this, the largest bridge was Coinbase, which has played an integral role in crypto’s rise.

I believe they have conservatively announced that Libra won't go fully decentralized, but Eric is again more optimistic saying "Libra has the potential (and current plan) to go from “a little decentralized” on day one, to “moderately decentralized” within a few years of launch. The plan is clearly to gradually decentralize with time. Good plan, we’ll see if they can actually do it."

Now the bad, about Libra, from Eric:

Libra is clearly not a “pure cryptocurrency.” Nobody should expect privacy by using it. Nobody should expect the true borderless standard of most cryptos.

the governing consortium can explicitly block/prevent txs. You won’t find unstoppable finance here. Again, in this, traditional cryptos are far superior. But let’s be realistic, there’s no way FB could create an unstoppable coin (at least, not in its 1st phase…)

Libra achieves stability (a critical feature for most normies) by backing the coin with a basket of a) government fiat, and b) government debt (bonds). Personally, I want nothing to do with either of these “assets.”

Over the long term, any currency based on fiat will fail relative to hard assets (Bitcoin, gold, etc.) Politicians debase currency as their modus operandi, and thus if Libra maintains fiat backing it tend toward zero long term. BTC and “real” cryptos will crush it long term.

Take a look at Erik Voorhees: https://twitter.com/ErikVoorhees for the full thread

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but we can find plenty of plagiarism, with plenty of bid-bot votes and your upvotes on it, too, right over on your "wife's" blog -> @shimaro