RE: Don’t Underestimate Facebook’s Libra: They Are Creating The World Currency (1)
It won’t be low volatility. It’s backed by a basket of currency and securities. It will not maintain a 1:1 peg, specially when the fire hits the dollar and the rest of fiat. Bankers are not going to let corporations move in on their territory like that. It’s not decentralized enough to prevent them from losing this battle. And the number of nodes doesn’t mean decentralization, it’s who has the access to run those nodes. Right now it’s corporations, and soon I’m sure some banks will join to take their piece of the pie. This might be using blockchain, but it’s not a real crypto currency. It’s a controlled currency thats going to burn consumers along the way. When this crumbles, real crypto will still be doing its thing while the world blames cryptocurrency for the crashes, and says blockchain is a failed experiment.
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The consortium has dozens or hundreds of billions of dollars of capital, if they want, they can stabilize the Libra. By high volatility, most average people could avoid using it, so, I suppose, they will stabilize it. or, speculators looking the value of the basket.
Anyway, it will be an interesting story.
I think it will be an interesting story. They can’t stabilize the economy without crypto, they aren’t going to be able stabilize it now just because they threw it on a centralized, permissioned blockchain. What they are backing it with is the same garbage de-stabilizing the system now. If it’s not decentralized, and pegged to garbage, it’s not going to change anything. The only thing they have that’s useful is the network effect from users and markets they currently have. People already don’t trust them with their data, this is going to become a nightmare for them.
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Big facts.....
They do not have real money. They do not even have central bank money. All they are able to provide is worthless debt. What kind of thinking is leading someone trying to stabilize a currency that is replacing a worthless one with exactly the one that has to be replaced ?
Give me all the worthless dollars, then...