Facebook’s Libra Cryptocurrency: An Overview, Perspectives and Investor’s Guide PART 2
17.09.2019
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.
Current Articles
USDT, often dubbed as the gold standard of stablecoins, remains a stalwart in the volatile realm of cryptocurrencies. Tethered to the value of the US dollar at a 1:1 ratio, USDT boasts a digital fortress backed by equivalent dollar reserves for every single unit in circulation. Unlike its volatile counterparts, USDT, along with its ilk, endeavors to maintain an unwavering value, rendering them indispensable for both trading and storing wealth.
USDD, a product of TRON DAO Reserve, represents an advanced ecosystem of stablecoins meticulously designed to reflect the value of the US dollar, initiating a transition towards a reliable, decentralized digital currency infrastructure aimed at seamless blockchain transactions.
In a realm characterized by the volatility and instability of the cryptocurrency market, Tether serves as an island of tranquility and reliability. But what exactly is Tether?
Tether is a cryptocurrency pegged to a fixed exchange rate with a fiat currency, most commonly the US dollar. Its primary objective is to ensure stability and reliability in the realm of cryptocurrency transactions. In other words, one Tether token is always equivalent to one US dollar.