Facebook’s New Cryptocurrency Gets Big Backers

[Sprout]

The important takeaway is mainstream adoption. Facebook has billions of users worldwide, let's imagine for a second that a majority of them become Facebook (Libra?) coin users using the Facebook app as a wallet and feel comfortable using it for transactions of goods and services. These same users would find it very easy to install a bitcoin wallet and start using it in the same way they're using the Facebook wallet.

At one time, I had several different cryptocurrencies wallets on my phone and tablets, and over a dozen wallets on my laptop. They all function in a similar way.

If Facebook coin succeeds, and I'm hoping it does in a big way, it doesn't mean bitcoin will fail or go to zero. There's a reason we have Apple Pay, Android Pay, Samsung Pay, Visa, MC, PayPal, Venmo, Ali Pay, WeChat Pay, etc.... There's a lot of opportunities for profits in the payment systems.

I agree that it will be bullish for BTC. I’m not so sure that the FB coin will be as successful.

It will certainly raise awareness and accelerate mainstream adoption. The essential issue it will focus awareness upon is who gets to own and profit off a participants data.

Many with consider the FB coin as an attempt to further centralize power and an attempt to co-opt the virtues of decentralization. Just as we are seeing how with Google’s change in search algorithms can bankrupt a business virtually overnight, FB will yield that same power with an in-house private censor with a skewed sense of constitutional protections. They’ll claim it as an organization and I have my doubts that they will extend the same to their users.

One of the things that I’m impressed about in terms of the framing of our constitution is the separation of powers and the checks and balances embedded into the system. May whatever gets developed from FB also embrace the same ideals.

BTC has at it’s basis a collection of ideals. Unless FB coin also is based on similar values, it’s just another attempt at corporate money grabbing.

 

[Cuddles]

I agree that it will be bullish for BTC. I’m not so sure that the FB coin will be as successful.

It will certainly raise awareness and accelerate mainstream adoption. The essential issue it will focus awareness upon is who gets to own and profit off a participants data.

Many with consider the FB coin as an attempt to further centralize power and an attempt to co-opt the virtues of decentralization. Just as we are seeing how with Google’s change in search algorithms can bankrupt a business virtually overnight, FB will yield that same power with an in-house private censor with a skewed sense of constitutional protections. They’ll claim it as an organization and I have my doubts that they will extend the same to their users.

One of the things that I’m impressed about in terms of the framing of our constitution is the separation of powers and the checks and balances embedded into the system. May whatever gets developed from FB also embrace the same ideals.

BTC has at it’s basis a collection of ideals. Unless FB coin also is based on similar values, it’s just another attempt at corporate money grabbing.

They could adopt POW to make adoption happen, but doubt they're going to.

 

[nooby_mcnoob]

FB coin is not for the nerds, it's for a global network currency that avoids using the banking network. By pegging it to government currencies, there is theoretically no fear of losing your money.

FB will be willing to let this coin float free to achieve their goals. But they will fail as there aren't that many transactions happening on the network.

 

[Sprout]

They could adopt POW to make adoption happen, but doubt they're going to.

I think the tech has progressed beyond PoW as a consensus algorithm. Pre-mining is a work-around but issues around distribution. PoS has it’s limitations as well. Next generation is web-of-trust which operates similarly to how women organize hierarchy - In/Out vs how men do - linear place in line (Tallest to smallest, etc).
There has to be a way for a consensus to insulate itself from being gamed by invested interest and bad actors. BTC’s PoW favors gaming by miners and they will not relinquish the power and influence they have in the network even if what is proposed it’s a better overall solution to a problem at hand.

 

[Sprout]

FB coin is not for the nerds, it's for a global network currency that avoids using the banking network. By pegging it to government currencies, there is theoretically no fear of losing your money.

FB will be willing to let this coin float free to achieve their goals. But they will fail as there aren't that many transactions happening on the network.

Pegging it to a currency is not avoiding the banking network, it’s being co-opted by it.

 

[nooby_mcnoob]

Pegging it to a currency is not avoiding the banking network, it’s being co-opted by it.

It's practical for now. Eventually FB coin may be successful and bypass the global banking network entirely. It's probably the only coin I'd buy

 

[johnarb]

Pegging it to a currency is not avoiding the banking network, it’s being co-opted by it.

https://cryptocurrencyfacts.com/what-is-a-stable-coin/

If the Facebook is indeed another stable coin that is pegged to a fiat currency, it will not be a competition to bitcoin and other cryptocurrencies, but function more as a gateway in-and-out of the decentralized coins.

Facebook coin will be a centralized coin that can act as an "exchange" of value with other cryptos. Facebook and its partners will make their money through fees and spreads and the cryptos world will be able to spend their coins anywhere Facebook coin is accepted.

This is similar in process to Coinbase issuing credit cards backed by cryptos, making it easier for hodlers to spend and Coinbase and partner banks/Visa/MC makes their money in the transactions.

That's why the cryptosphere is celebrating this news. It's another means of spreading adoption and market acceptance.

Facebook coin, if it is a stable coin, is not for investment or speculation purposes, just like someone does not invest $100 in Tether (USDT) and hoping it will be worth $110 in the future.

 

[Nikole7788]

Frankly speaking, I'm surprised. I look through cryptocurrency forums all the time and read many sceptic posts about Libra, and now I've found out that such big companies as Visa, Mastercard, PayPal and Uber are going to invest in this currency. On the other hand, this decision could be one of the reasons of the Bitcoin price increase.

 

[traderjo]

https://cryptocurrencyfacts.com/what-is-a-stable-coin/

If the Facebook is indeed another stable coin that is pegged to a fiat currency, it will not be a competition to bitcoin and other cryptocurrencies, but function more as a gateway in-and-out of the decentralized coins.

Facebook coin will be a centralized coin that can act as an "exchange" of value with other cryptos. Facebook and its partners will make their money through fees and spreads and the cryptos world will be able to spend their coins anywhere Facebook coin is accepted.

This is similar in process to Coinbase issuing credit cards backed by cryptos, making it easier for hodlers to spend and Coinbase and partner banks/Visa/MC makes their money in the transactions.

That's why the cryptosphere is celebrating this news. It's another means of spreading adoption and market acceptance.

Facebook coin, if it is a stable coin, is not for investment or speculation purposes, just like someone does not invest $100 in Tether (USDT) and hoping it will be worth $110 in the future.

SO does this simply means creating another "Currency" trying to be a true global currency? and why and backed by what?
If I invest in UK pounds US dollar or Singapore dollar I can see the backing of each government which in turn have credit rating, assets etc.
Why on earth would I trust this? and for what purpose?
If my base currency say Swiss or Indonesian rupiah and I am travelling/ trading around the world I will either carry USD/ Euro or just spend in local currency using CC and via the already established global banking network get charged via perhaps USD ,, in all cases I will be paying omissions and charges
Scenario 2 my earning currency and majority of my spending is in same FIAT currency so why woudl I change it?
it is like earning in pounds and go next door shop who also takes pounds but just for the hype of it I should change my pounds to Crypto and then spend next door in Crypto ( If he takes it) and one day I need it back it in ... meanwhile I am exposed to currency risk + fear of Crypto being hacked!
Also where is the safety, MY local govt guarantees my Bank deposits
Can somebody explain in straight forward term why ?

 

[Sprout]

SO does this simply means creating another "Currency" trying to be a true global currency? and why and backed by what?
If I invest in UK pounds US dollar or Singapore dollar I can see the backing of each government which in turn have credit rating, assets etc.
Why on earth would I trust this? and for what purpose?
If my base currency say Swiss or Indonesian rupiah and I am travelling/ trading around the world I will either carry USD/ Euro or just spend in local currency using CC and via the already established global banking network get charged via perhaps USD ,, in all cases I will be paying omissions and charges
Scenario 2 my earning currency and majority of my spending is in same FIAT currency so why woudl I change it?
it is like earning in pounds and go next door shop who also takes pounds but just for the hype of it I should change my pounds to Crypto and then spend next door in Crypto ( If he takes it) and one day I need it back it in ... meanwhile I am exposed to currency risk + fear of Crypto being hacked!
Also where is the safety, MY local govt guarantees my Bank deposits
Can somebody explain in straight forward term why ?

The answer depends if you are a no-coiner or a pre-coiner.