Facebook Libra Crypto: Is it good for crypto?


Hi Sam Volkering here, well it’s been an eventful
week and I’m not just talking about Facebook’s
Libra crypto project, I’ve had the flu, I’ve
also got attacked by a swarm of FERAL HONEY
BEES that resulted in several bee stings so
I’ve had an eventful week to say the least.
But I’m on the road to recovery which is good
news for you which means I’m not dead. And
I get to talk to about Facebook’s Libra coin,
or Libra cryptocurrency or Libra token or
whatever you want to call it because heaps
of people have been writing in to us asking
what’s it about? is it good? is it bad? wen
lambo? wen moon? can i get on the Facebook
ICO? which kind of reinforces the fact that
investor FOMO is coming back into the crypto
market at great speed which is slightly worrying
and slightly enthusiastic at the same time.
So, anyway…Facebook’s Libra, what’s it all
about, is it even a cryptocurrency? Is it
good for the ecosystem? Well, overview is
that yes Facebook’s Libra is at least brining
awareness to the masses for cryptocurrency.
It’s not really a cryptocurrency in that the
idea is that it’s going to be back by a reserve
and that reserve is going to be a mix of cash,
government issued bonds, all different kinds
of currencies and things like that, so if
anything it actually sounds a little bit more
like a corporate special drawing rights or
SDR which is a bit like the SDR that the International
Monetary Fund (IMF) uses. So in a sense like
that I see what Facebook is doing is more
like a digital corporate SDR and that’s I
think why governments and central banks are
probably asking them to explain themselves
a little bit more about what they’re doing.
Obviously its their digital, the user gets
to use these Libra tokens in Facebook’s ecosystem
in WhatsApp and in Messenger and I’m guessing
down the track within Facebook and Instagram
itself. In that sense they’re kind of building
a payments system or at least payments rails
using cryptocurrency-like technology behind
it, it really looks like it’s a very large
database, private database that’s going to
be managed between Facebook and a consortium
of other very large international conglomerates
which have all bought into the system and
so they’re paying a lot of money to be a part
of the network and then to get benefits out
of the reserve so again it’s all these really
big, wealthy, powerful, tech giants and influential
conglomerates around the world that are benefiting
from this sort of creation of a digitised
payments system and the end user, the person
that’s going to use Libra day-to-day that’s
transacting in and out of WhatsApp or Messenger
or that sort of thing, yeah okay they get
to remit money from point A to point B without
fees and instantaneous which isn’t that dissimilar
to instant payments anyway, but all the benefit
goes to the corporates that earn interest
and investment returns off of the reserve
itself. So, look, Facebook, what are they
doing? They’re just trying to find another
way to monetise their 2-point-something billion
users and they’re doing it sort of under the
guise of cryptocurrency. Again, the use of
it is probably not a bad idea and it’s probably
going to be great for a whole lot of people
and if anything its probably going to provide
that portal or that gateway for people to
get involved or at least aware of cryptocurrency
like Bitcoin, Ethereum and a whole bunch of
other cryptocurrencies that we know are in
the market. So, in that sense probably not
a bad thing, I wouldn’t go busting your nut
trying to think about getting into some sort
of Facebook ICO or speculative gain off of
the Libra token or anything like that because
its probably just not going to happen. Nonetheless
as I said, I think as a portal into the awareness
of cryptocurrencies at least getting people
that probably have maybe heard of bitcoin
or something like that but haven’t really
taken that step into getting involved its
not the worst thing in the world. And I would
assume that some of the major exchanges would
eventually will probably provide some sort
of Libra-to-Bitcoin trading pair or something
like that and so you’ve got this direct link
into other cryptocurrencies from Libra token.
So, in a nutshell, is Facebook’s Libra token
really a crypto…? Not really. Is it beneficial?
Possibly for the 2 billion or so users in
Facebook’s ecosystem. Is it beneficial to
the existing crypto markets? Yes. I think
so, certainly from an awareness and down the
track quite possibly an integration route.
And overall is it good for everybody? Well
it’s not great for banks, its not great for
central banks or governments, its probably
good for cryptocurrency so in that sense,
yes. Bring it on. Thanks Facebook, Libra coin,
you’re going to make, or you already definitely
have made some shockwaves in this ecosystem
and market. So that’s all from me on Facebook’s
Libra, I’m going to be a little bit more active
with some video updates coming your way so
stay tuned, keep in touch and I’ll bring you
more videos very soon. Thanks again!

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