Facebook Libra Coin Whitepaper–Facebook’s Libra Can Get Greater Acceptance Than Bitcoin.

On June 18, Facebook and the Libra Association officially announced the release of Libra, an electronic currency supported by Libra Reserve to maintain stable value.

By 2020, Facebook said it plans to integrate Calibra – an e-wallet designed to support Libra – into WhatsApp and Messenger, to introduce this asset to billions of users worldwide by 2020. .

According to Pivotal Research’s Michael Levine, Libra may see a more mainstream adoption of Bitcoin, especially among investors due to its stability in value. But, can Libra compare with Bitcoin?

Bitcoin and Libra cannot be compared

Image result for Facebook Libra Coin Whitepaper--Facebook's Libra Can Get Greater Acceptance Than Bitcoin.

At CNBC’s Closing Bell program, Levine points out that Libra and Bitcoin are serving different markets.

Due to its stable value, Levine believes that Libra can attract the mainstream better, retail investors and traders will feel more comfortable accepting it. Levin said:

One of the challenges around electronic money, we can argue about what it’s really worth in terms of value storage, but basically, we have seen small and pretty investors. many large internet companies have chosen to cooperate with Facebook as well as in the payment space, may not be willing to accept something like Bitcoin – the type of asset that you cannot guess its value in the next month, It may increase by 10% or may decrease by 10%.

Some of the most popular platforms are Booking.com parent company – Booking Holdings, Uber, Lyft and Spotify who joined as a founding member of the Libra Association.

Analysts’ predictions remain optimistic about Libra’s future trend. According to them, Libra’s birth will immediately lead to retail corporations accepting assets; moreover, being used by businessmen has been a challenge for electronic money in many years.

However, although Libra may be widely accepted in the near future, it is likely that its price trend will not simulate Bitcoin and not correlate with other electronic money assets.

In the long term, investors expect Bitcoin to develop into a safe haven asset and is a barrier that does not correlate with the broader financial market, competing with traditional assets like metal. precious.

Libra – based on Libra Reserve and real-world assets as a monetary reserve – will not attract investors in a way that is a valuable repository, where investors can use it to store the rich because of its correlation with existing assets.

Security expert and pre-electronic researcher Andreas Antonopoulos tweeted:

Is Facebook’s Libra a real blockchain? Is not. Will it compete with Bitcoin, is really open source and is the public blockchain? Never.

Analysts are optimistic about Facebook

Levine said:

We talked to a few e-money investors in the space to try to get more ideas, and I think those are the conversations that made us take a first note.

This is electronic money but there are some differences from Bitcoin and some other things that people have seen in the electronic money market. Facebook is trying to offer a stable currency in which the base value should be based on six major currencies worldwide.

Although Libra will not act as a substitute for bitcoin and other e-money assets, these assets are considered valuable archives, but analysts like Levine believe it will target a new market. that electronic money is currently struggling to dominate, especially in the retail sector and acceptance from traders.