Litecoin is one of the first open-source altcoins based on the original Bitcoin code. It was initially a strong competitor to the first cryptocurrency. However, as the cryptocurrency market expanded, Litecoin’s popularity gradually declined.
Facebook’s Libra Cryptocurrency: An Overview, Perspectives and Investor’s Guide PART 2
Everyone expects Libra to become a global cryptocurrency for transfers with minimal or no commission. It is not yet known whether users of the services will pay. The developers are pursuing a global goal – access to money transfers for the part of the population that does not have the opportunity to use the services of banks, but has a smartphone. And there are almost half of all mankind.
Facebook has conquered the global online market with 1.5 billion Facebook Messenger users, 1.3 billion WhatsApp and 1 billion Instagram users. The company is one of the most successful, but still, when developing Libra, some points were not taken into account, and here we have a number of problems.
Disadvantages of Libra
Doubts about data security. Facebook claims that they will not use user data for advertising campaigns, but no one believes this anymore. The company's reputation was badly damaged during the scandal over the transfer of millions of users' data to Cambridge Analytica for election campaigning. In addition, to register on the Calibra website, you need to pass KYC verification by providing an identity card. That is, there is no question of any anonymity.
Rigid centralization. All network development decisions are made exclusively by members of the Libra Association. Libra mining is not available to ordinary users and there will be no public voting.
Contradictions with regulators and business partners. 7 of the 27 members of the Libra Association are not sure that they will remain in the project and are not going to invest in development. US congressmen urged Zuckerberg to stop development and held two hearings on the case. In any case, without the approval of Congress, the launch of the project is impossible, and in order to obtain permission, you must provide a finished product for evaluation.
What do investors need to know?
There are two options in which the value of the Facebook stablecoin will increase: the collateral currencies will rise in price and raise the price of tokens, or the coin will appear on the exchanges, where it will be immediately sold out, thereby raising the rate. True, it is not yet clear whether Libra will appear on the trading floors.
For investors, the following strategy will be optimal:
- buy coins at the very beginning of sales on top exchanges (experts suggest the lowest price at this stage);
- wait for growth and sell assets before the creators make the rate stable;
- monitor the growth of currencies from collateral and take advantage of price spikes.
Earlier we wrote about the history of the creation of Libra and the scope of this cryptocurrency.
