Tag - libra

Everyone knew that Bitcoin will get bullish at one point and all those 'HODLers' were waiting for something similar. The last bitcoin frenzy we saw in Decemeber 2017 which took the price of bitcoin to $20,000 was called a 'bubble'. When bitcoin started falling down, everyone said the bubble has burst, but It makes one wonder when Bitcoin is currently hovering at around $11,000 : Bubbles do not burst twice. Network Partners of Facebook Libra Coin had to make an upfront investment of $10 million to become part of Libra Association Facebook Libra Coin is getting the credit for the current Bitcoin rally and that is totally absurd and lets talk about why some outlets would like to give credit to Libra Coin even when its not a fact. Bitcoin Predictions of 2019 to break $20,000 Before I go down nailing Libra (not because I want to, but because it deserves that) let's see some basic factors about this current rally. I will state what I always do in the start, never make up your investment plans in Cryptocurrency just by reading one article. I have tried my level best to tell all the pros & cons of cryptocurrency, My Comprehensive Beginners Guide and Golden Rules of Trading are good pieces to read and understand how things work after you have found the Safest Place to Buy and Sell Cryptocurrency. Never jump into cryptocurrency if you do not understand the concept. I am in it for the technology, I have had Bitcoin when it was less then a dollar because the decentralized ledger concept fascinates me and I see great potential in it. With the richness of the social media data Facebook consistently garners, even anonymized data can be re-calibrated to distill specific individual-related information and preferences. Facebook, along with its other monopolist rent-seeking cohorts, such as eBay, Uber and Mastercard, all say they won’t do that. Lets come to the important question, Why the Crypto audience thinks that Bitcoin might just break $20,000 mark this time around ? Bitcoin Halving : The latest rally to five figures is also happening way before the Bitcoin block reward halving set for May 2020. This is when mining block rewards will be cut from 12.5 to 6.25 BTC, thus reducing the bitcoins minted by miners who are naturally market sellers. Increased demand and decreased supply will give a price boost.Secure Network / Blockchain : Hash rate hit a new all-time high at over 65,000,000 TH/s. In other words, Bitcoin is more secure than ever and would require an unfathomable amount of computing power to affect the network. Network transaction fees have remained relatively low compared to 2017, with optimizations like SegWit and off-chain scaling solutions like the Lightning network helping ease congestion.Institutional Demand : Institutional demand for bitcoin has soared. As of June, open interest at CME Group saw 5,311 contracts totaling 26,555 BTC, or approximately $246 million — dwarfing the volumes during the 2017 price peak.Added Legitimacy : Since the last bull run of Dec 2017, we have seen Bitcoin being adopted by many more franchises including AT&T as means of paying bills which gives this coin legitimacy to those fraction which had their doubts.The Bubble didn't Burst : If Bitcoin is just a bubble I wonder why you all are still reading this? Why biggest tech industries are talking about 'blockchain'. Bitcoin is here to stay while many will come and go trying to cash on it. Because deep down everyone knows that BTC is not going anywhere. What is Facebook Libra Cryptocurrency Facebook saw how awesome Bitcoin and its blockchain concept was but they couldn't give them the due credit. Facebook couldn't miss all the action so they decided to make a cryptocurrency of their own , but hey it's Facebook we are talking about so you know there will be a "catch" in terms of "control,privacy,our data". I did a thread of tweets on Twitter few days back which is a fun read aswell and gives insight on how clumsy the Libra concept is. https://twitter.com/Hackology/status/1141828771001131008 This is a thread of 10 tweets , which is worth the read to know quickly all about Facebook Libra Lets now talk about Facebook Libra Coin : What it is all about. My feedback is based on their Libra Whitepaper, and the information given on their Website and Developers section. Libra Coin is Centralized and Controlled : Libra coin will launch as a 'permissioned blockchain' , as Facebook explains in their whitepaper, that permissionless blockchain is what we have like Bitcoin : anyone meeting the technical requirements can become a validator node but Libra wouldn't allow that and only a selected people will be allowed to become a validator of the coin a.k.a Controlled and Centralized CoinLibra wants to become Bitcoin : Libra coin aims to become a 'permissionless blockchain' a.k.a decentralized. Facebook also states "To ensure that Libra is truly open and always operates in the best interest of its users, our ambition is for the Libra network to become permissionless. The challenge is that as of today we do not believe that there is a proven solution that can deliver the scale, stability, and security needed to support billions of people and transactions across the globe through a permissionless network". Libra coin is negating what all has been achieved by Bitcoin?Byzantine Fault Tolerance : Libra coin uses LibraBFT to ensure trust in their blockchain even if some validator nodes are compromised. In a centralized closed network, with only 3 validators this approach doesn't add any security to the blockchain and is liable to all sorts of cyber attacks and even a controlled /manipulated consensus.Libra Coin doesn't need your Identity : Facebook states " The Libra Blockchain is pseudonymous and allows users to hold one or more addresses that are not linked to their real-world identity." I don't know but this seems funny coming from Facebook, I mean privacy and Facebook. It would be appropriate if I add this image here https://twitter.com/Hackology/status/1142922266340134914 Pegged Against Multiple Fiat : The assets in the Libra Reserve will be held by a geographically distributed network of custodians with investment-grade credit rating to provide both security and decentralization of the assets. This further shows that the money will be controlled by "custodians" which will selected by Libra Association which at the moment has Facebook at the head table.Hybrid of Ripple and Tether : Facebook mentions in the whitepaper that the assets behind Libra are the major difference between it and many existing cryptocurrencies that lack such intrinsic value and hence have prices that fluctuate significantly based on expectations. They also mention that Libra is indeed a cryptocurrency, though, and by virtue of that, it inherits several attractive properties of these new digital currencies: the ability to send money quickly, the security of cryptography, and the freedom to easily transmit funds across borders. After reading this, It makes me question : Why reinvent the wheel ? We have USDT and XRP (for being a controlled cryptocurrency)Goal of an ICO : You be the judge here and tell us what comes to your mind after you read the goal of Libra Coin : "This is the goal for Libra: A stable currency built on a secure and stable open-source blockchain, backed by a reserve of real assets, and governed by an independent association" - Every shitty ICO had something like this, and independent association is controlled and very much not independent nor it will be as long as founding members are to get their membership on upfront payment of $10 million. If you have this much of investment you can become part of it too, Just Buy yourself seat at Libra Association. Early Look of Calibra App which will be official app for Libra Coin and will have integration wtih WhatsApp ,Messenger, Instagram and Facebook Facebook Libra Coin is a Rip Off ? According to Mance Harmon CEO and Co-founder of Hedera, Facebook copied the Hedera Governing Council. The Hedera Network will be governed by up to 39 council members where no single member would dominate the decision-making process and will follow a distributed governance model. Hedera went out and made a statement with their full page advertisement in Wall Street Journal: Hedera pointed something out in a very classy way Mance wrote a detailed blog post about how Facebook Libra might just be a copy-cat, he revealed I sat down with David Marcus of Facebook in February 2018, and shared our vision for Hedera, including the technology roadmap, the importance of a governing council, and more. Much of what we shared was echoed in Facebook’s Libra announcement this week, and that is a good thing for the market. Bitcoin Bull Run not because of Facebook Libra Coin Bitcoin (BTC) was already trading above $9000 when Facebook formally unveiled its Libra cryptocurrency protocol. Facebook revealed Libra Coin website on June 18, when BTC/USD was hovering around $9200. The recovery from $3130 to the current value happened all without Libra coin in the news. Bitcoin bull market began on April 1, seeing several peak-and-trough cycles but definitively reversing its previous downward trend. People ask : Will It affect other Cryptocurrencies ? No, It hardly will make any impact.However, as details of Facebook’s Libra Coin surfaced, criticism is mounting over Libra’s technical characteristics, which arguably leave it with little in common with public blockchains as I have shared many of the aspects in start of the article. When Libra Coin is negating POW and stability of cryptocurrency how can it have a positive effect on Bitcoin? The bitcoin hike in price is organic and not because of Facebook Libra coin news. Conclusions on Libra Coin Libra Coin will not be traded on any cryptocurrency exchange, Libra coin will be pegged therefore it is not going to make you rich. You won't be able to mine Libra coin, The minting and destroying of Libra coin will be done at will by the Libra Association. Libra Coin is nothing like a traditional blockchain nor it should be mixed with any, specially not with Bitcoin. Facebook will speak piously about privacy controls and its concern for the consumer, yet it will still figure out a way to sell the data or others who buy the data will figure it out for them. Libra Coin can be used to make certain payments but it is currently controlled and that puts privacy at risk. Facebook bought WhatsApp,Instagram and now stepping into financial transactions with their own coin. I would prefer Bitcoin any day over Libra Coin.