Crypto Libra..

Discussion in 'Other Asset Classes' started by willair, 19th Jun, 2019.

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  1. willair

    willair Well-Known Member Premium Member

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  2. Blueskies

    Blueskies Well-Known Member

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    This would be the first cryptocurrency that I have seen where you could actually see it gaining true global traction as a usable currency for transactions. Beyond Facebook, look at the list of backers, lots of global giants hitching their wagon to this.

    I think as it moves closer to roll out it should be seen as the death knell for virtually all other cryptocurrencies. If I held any crypto I would be dumping it today.
     
  3. Guest

    Guest Guest

    On the contrary I think it publicizes and opens up the crypto market to a much larger number of people, which could be incredibly bullish for other tokens.

    Libra won't be permissionless in the same way as Bitcoin or other tokens.

    Libra can't be used in verifying data in the same way as IOTA.

    Libra's underlying 'intrinsic value' results from centralised ownership of other assets.

    There's plenty of reasons to believe that Libra won't be damaging to the existing crypto economy IMO, but I do think it could become an industry leader (much to the disdain of the anarchistic Bitcoin maximalists).
     
  4. wategos

    wategos Well-Known Member

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    So they should call it Cancer instead of Libra ?
     
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  5. gman65

    gman65 Well-Known Member

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    I can't see it being legalised..nor Facebook being allowed to create their own currency at all.
     
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  6. Blueskies

    Blueskies Well-Known Member

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    I take your point Guest but we will have to agree to disagree.

    My perception is that the crypto market on the whole is a bunch of gamblers, speculators, outright frauds, manipulation, opacity, lack of regulation and a woeful track record of security breaches and loss/theft of assets.

    In the middle of that you have the boffins who genuinely believe in the dream.

    Having Facebook put out a product that will be safe, transparent, regulated and no doubt forced down users throats - why would anyone play around in that other murky mess. It’s like comparing CSL to speculative marijuana stocks, or Amazon to Amway.
     
    Last edited by a moderator: 10th Oct, 2021
  7. Guest

    Guest Guest

    Libra will be a 'stable coin', a completely different beast to most of the crypto market, so I don't agree with your comparison of blue chip to spec stocks.

    What would you use Libra for?

    Why would you choose to use Libra instead of Australian Dollars?
     
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  8. albanga

    albanga Well-Known Member

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    Heaps of companies create their own currency. Have a look at how much the like of EA sports make selling items like FIFA Coins.
     
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  9. willair

    willair Well-Known Member Premium Member

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    That's the only question to ask yourself--as the Australian banking system now the "RC" is over and most of the same people are still on the banking boards works well..

    Investment wise it would pay to watch what happens ,as anyone who is on face-book and the data they would have ...
     
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  10. Scott No Mates

    Scott No Mates Well-Known Member

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    After the various leaks of personal details and the hacking of countless financial, government and other business sites, how much faith will the wider market put in FB's ability to take security and privacy seriously.
     
    Last edited by a moderator: 20th Jun, 2019
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  11. Ouga

    Ouga Well-Known Member

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    "Trying is the first step towards failure" Homer
    As pointed out, this is a stable coin, that is a representation of a basket of currencies, so by definition its value is stable and there is absolutely no point purchasing the token if one is hoping for some appreciation. In that regard it's just like buying a few different currencies in your PayPal account. Where it could prove useful is to send money to friends and family overseas without the massive fees associated with such transfer. Provided your friends and family do not live in a jurisdiction where it is banned.

    This is completely unlike Bitcoin however: Bitcoin is not centralised, has no single point of failure and is censorship resistant - unlike libra where we are already seeing governments in Europe and calls in the US for Libra to be halted and/or banned:

    Facebook Token Runs Into Instant Political Opposition in Europe
    Bloomberg - Are you a robot?

    U.S. lawmaker calls for Facebook to pause cryptocurrency project - Reuters

    Bitcoin is also permission-less and borderless, so there is no saying this country/people/group can use it or cannot use it and is much more private. Facebook already knows so much about you (even those whithout and account!), that sharing more of your personal financial information and behaviour with them will not be to everyone's taste and we can wonder how this is going to go down over the long term. Personally I would not trust them with the information, they have not proven trustworthy with their business model being based on basically selling private information.

    Here is a little refresher for anyone with a short memory:



    Overall I think it is great for the space though, it will introduce the concept of digital money and currencies to many people who have not had exposure to it before. I think it'll lead more people to explore the concepts of crypto-currencies and this is a significant bridge between the mainstream and the established crypto-currencies.

    Personally I think this is Facebook taking on the concept that we have seen in China for a few years already where everything can be purchased through the messaging app WeChat, from your kids tuition fees, to your doctor's appointment or getting some street food on the go, all within the app with digital cash.
     
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  12. Danieljk101

    Danieljk101 Well-Known Member

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    Are you talking about crypto or the banking system and world governments?

    You need to open your mind, you may be amazed what you find...
     
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  13. albanga

    albanga Well-Known Member

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    I don’t think it will kill other crypto’s. On the contrary I think it may drive mass adoption.
    At the moment the masses simply can not distinguish between bitcoin and blockchain.

    They think Bitcoin, they think computer money that buys drugs and is an investment bubble. They have Zero idea it’s built on the blockchain.

    Libra looks to be the first crypto currency backed by “trustworthy” corporations designed to keep the value stable. I think it is going to be immensely popular and change the game.

    When it does that then people are going to start to understand the difference between bitcoin and blockchain and that’s when we may see Alts also begin to separate from Bitcoin and actually be valued on the technology and not bitcoin.

    I am a huge fan of this project based upon what it will do for the technology.

    I do however think it could kill Bitcoin.
    Yes the purists will argue it’s not decentralized but the masses couldn’t care less about that. It’s instant free transfers and still a heck of a lot more decentralized than current banking.
     
  14. gman65

    gman65 Well-Known Member

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    Yeah, but that is just for games... however, the fear will be this could become a substitute for central bank backed currencies. Already in the last few days, bankers, G7 nations, and organisations such as the IMF have come out and said they will be looking at this very closely. So the amount of compliance and legislation they will have to contend with is massive.

    Plus most of the EU will be against it on privacy grounds, and well, probably just being an American company in the first place they won't like the idea.

    And given Facebook's complete failings on privacy in the past few years, I can see the resistance here is going to be huge.

    https://www.pymnts.com/cryptocurrency/2019/g7-countries-respond-facebook-libra-probes-controls/

    And there are 100's of millions, if not billions who will refuse to use the currency simply because its got Facebook behind it, myself included.
     
  15. albanga

    albanga Well-Known Member

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    Each member, including Facebook/Calibra, will only get up to one vote or 1% of the total vote (whichever is larger) in the Libra Association council. This provides a level of decentralization that protects against Facebook or any other player hijacking Libra for its own gain.
     
  16. Blueskies

    Blueskies Well-Known Member

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    In the same way that Google drove mass adoption of AltaVista, Excite and Ask Jeeves?

    C'mon now, when a consortium of multi billion dollar companies back something like this, it rarely bodes well for other players. Especially when 99% of the competition is pump and dump rubbish.
     
    Last edited by a moderator: 10th Oct, 2021
  17. Guest

    Guest Guest

    I'm not really convinced you understand the difference between Bitcoin or IOTA (for example) and Libra, if you think the latter is a replacement.

    That's not to say Libra won't eclipse them in use, but I see the use cases and reasons / ideology behind owning and using decentralised crypto to be very different to Libra. I could see Libra being very helpful for the unbanked in countries with volatile currencies, but I don't see why people in western economies would be all that interested in using a currency whose value differs to what they use day to day.

    You seem to have missed these questions:

    What would you use Libra for?

    Why would you choose to use Libra instead of Australian Dollars?
     
  18. albanga

    albanga Well-Known Member

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    OK thanks for the example.
    Before Google did search engines exist? Well of course they did. They worked but had numerous flaws...flaws that without doubt effected adoption of the internet.

    Then along came Google with their unparalleled algorithms and their ability to deliver you the exact content you wanted with just a few key words. They changed the game forever and were ultimately one of the biggest drivers of internet adoption.

    Yes we can sit here all day discussing everything else that drove mass adoption of the internet but a powerful search engine was number 1.

    So yes whilst Google are without a doubt the biggest internet company in the world and it’s pointless to even attempt to create a search engine anymore (well not pointless, look at YouTube) what about everything that has come of it.....

    Think about all the technology that has been driven of the back of mass internet adoption.

    Now I have to agree with Guest that your argument makes me think you don’t realky even know what blockchain or DAG technology is? People who relate it solely to currency have basically no understanding of it.
     
    Last edited by a moderator: 10th Oct, 2021
  19. albanga

    albanga Well-Known Member

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    Oh and yeah I 100% agree that 99% are pump and dump garbage. Just like the dotcom bubble.
    But what came of that....
    Amazon, EBay, IBM, Adobe

    History has a habit of repeating itself.
    I have zero doubt that in 10 years time a cryptocurrency company we have not yet even heard of will be one of the largest companies in the world.
     
  20. Toon

    Toon Well-Known Member

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