Global Macro Trading Journal

[Daal]

Y
Your understanding of the backing of that currency is utterly incorrect. Do you know how much the financial backers of this venture invested in? 10mln. Neither the author of the article nor you seem to understand how the value of this new currency is supposed to be derived. It will certainly not backed by any financiers in the background, that is total nonsense. Goodness, gets me angry when someone talks out of his ass on virtually every single bullet point.

From the whitepaper
"Where is the money for the reserve coming from? The money in the reserve will come from two sources: investors in the separate Investment Token, and users of Libra. The association will pay out incentives in Libra coin to Founding Members to encourage adoption by users, merchants, and developers. The funds for the coins that will be distributed as incentives will come from a private placement to investors. On the user side, for new Libra coins to be created, there must be an equivalent purchase of Libra for fiat and transfer of that fiat to the reserve. Hence, the reserve will grow as users’ demand for Libra increases. In short, on both the investor and user side, there is only one way to create more Libra — by purchasing more Libra for fiat and growing the reserve."

This is quite similar to how ETFs work. So sorry, you are wrong

 

[Daal]

No it's not in the developed world where a domestic currency is much more stable than a basket of currencies that includes emerging market currencies. This means that the coin is subject to value fluctuations which completely defeats the purpose as store of value and means as payment.

Who said it includes EM countries? Furthermore the US has had 200% inflation in the past, Germany a lot more, study history a little bit

 

[GRULSTMRNN]

That was mentioned in the announcement that you claimed you had read/listened to.

Who said it includes EM countries? Furthermore the US has had 200% inflation in the past, Germany a lot more, study history a little bit

 

[GRULSTMRNN]

Lol, yeah Germany about 100 years ago. And this crypto (if one can even call it as such because it really defeats every property of a crypto currency) does not insulate from price inflation. Your comments get dumber and dumber with each post.

Who said it includes EM countries? Furthermore the US has had 200% inflation in the past, Germany a lot more, study history a little bit

 

[GRULSTMRNN]

If I may add it is an even worse means of payment for someone in a developing country. The domestic currency of a developing country widely fluctuates vs most developed nations' currencies (example Turkey or Russia) meaning a basket that is more heavily weighed towards developed country ccys will hence also cause the value of the coin in terms of domestic currency to fluctuate widely, but I dou t you actually follow the logic here.

No it's not in the developed world where a domestic currency is much more stable than a basket of currencies that includes emerging market currencies. This means that the coin is subject to value fluctuations which completely defeats the purpose as store of value and means as payment.

It does suit the backers of this project because it hedges their exposure across the globe but is a huge disadvantage for someone who wants to make a payment to a domestic recipient.

 

[Daal]

Lol, yeah Germany about 100 years ago. And this crypto (if one can even call it as such because it really defeats every property of a crypto currency) does not insulate from price inflation. Your comments get dumber and dumber with each post.

well, apparently you never heard of diversification

 

[Daal]

If I may add it is an even worse means of payment for someone in a developing country. The domestic currency of a developing country widely fluctuates vs most developed nations' currencies (example Turkey or Russia) meaning a basket that is more heavily weighed towards developed country ccys will hence also cause the value of the coin in terms of domestic currency to fluctuate widely, but I dou t you actually follow the logic here.

I actually live in a developing country and there are plenty of financial commitments that are made in USD instead of the local currency. People are aware of the risks and they are fine with it. Using Libra would be the same

 

[GRULSTMRNN]

Each time we talk about a specific issue you divert into completely unrelated issues. The discussion is about payments. Not speculation, not investment. It's super tiring to argue with you because you never stick to a point.

well, apparently you never heard of diversification

 

[GRULSTMRNN]

That means you are comfortable with it, you are not speaking for others. Value fluctuations completely defeat the purpose of a payment means. It turns into a speculative instrument.

I am out of here, you are arguing out of your basement and can't stick to a point

I actually live in a developing country and there are plenty of financial commitments that are made in USD instead of the local currency. People are aware of the risks and they are fine with it. Using Libra would be the same

 

[Daal]

Each time we talk about a specific issue you divert into completely unrelated issues. The discussion is about payments. Not speculation, not investment. It's super tiring to argue with you because you never stick to a point.

lol what? You were talking about inflation, which affects a lot more the investment/store of value aspect than payments