The recent rally has affected many market participants; at such moments, many people are influenced by the FOMO (Fear Of Missing Out) effect. But an understanding crypto investor, clearly aware that it's just only beginning.
The main focus on Libra so far was the stablecoin - a digital currency pegged to a basket of underlying assets. If the pegging mechanism works as intended, Libra coin won't undergo any crazy crypto pumps & dumps. Holders of Libra coin probably won't face any bigger risk than holding cash. This of course also means they won't make any money on the coin.
Picture a dystopian society. What do you see? Are you imagining a world with the aesthetic of Blade Runner 2077 or a similarly Cyberpunk-esque environment?
With Paypal withdrawn and Visa and Mastercard soon to follow suit, the death knell has sounded for Facebook’s cryptocurrency, Libra. Here’s an analysis of what happened in just 4 months.
Last month, Facebook finally disclosed details of its much-hyped cryptocurrency, Libra. After generating an immense amount of chatter, the company announced that the digital currency, set to launch in 2020, will enable people to buy things or send money to others with almost zero fees.
While there has been plenty of talk about the regulatory and privacy implications, there has been little public dialogue about the technology behind Facebook’s new digital currency. Can regulators concerns about privacy be alleviated upon closer inspection of Facebook’s new digital currency?
Facebook recently announced their new Libra cryptocurrency, a stablecoin set to launch in 2020 which will initially let users transfer money between Facebook’s Messenger and WhatsApp applications. However, the larger goal of Libra is to transform the global economy. In conjunction with other companies and partners that make up the Libra Association, including payments companies, technology companies, marketplaces, and venture capitalist firms, Libra has the potential to do just that. Having been involved in the cryptocurrency industry for the last couple of years there is definitely a reason to doubt how decentralized Libra truly is and if it can even be considered a cryptocurrency. However, one thing is certain, given the proposed makeup of Libra it could ultimately replace all current stablecoins, and quickly.
There’s a new wave of dozen fake accounts, groups and pages which are spread across Facebook and Instagram. — Claiming and trying to sell Facebook’s latest cryptocurrency Libra everywhere across the social platforms.
Last week, the price of BTC rose extensively, jumping to almost 13k. It was perfect timing for the organizers of the BTC2019 conference in San Francisco.
Occasionally an investigation turns up a piece of evidence that is unexpected, and is in fact more valuable that the information that is actually being sought. It could be said that last week’s Congressional hearings into Facebook’s Libra did just that.
Each participant stores a tree of pending commands locally, in addition to the state variables viewNumber (starting at 1, stores the highest QC it voted to pre-commit), and prepareQC (starts at nil), lockedQC (starts at nil, stores the highest QC it voted to commit). When a “new-view” or round starts, a public function determines the leader from the current participants.
The lack of transparency has been a growing problem for crypto-based companies. For most of them, it is a nightmare just to meet basic regulatory needs like finding an accountant, opening a bank account, getting audited and certified compliant. The main challenge lies in the fact that most accounting practices and financial reporting guidelines are formulated for traditional FIAT currency based businesses. There is a lack of clearly defined standards and practices for businesses dealing in tokens and cryptocurrencies.
For a mechanical entity that nobody was aware of just three years ago, blockchain has certainly come a long way. Bitcoin’s rise in popularity turned the blockchain technology that drives it firmly into the limelight, but what does the future hold for this brave new world?
When Facebook first publicised its plans to launch a new 'decentralised' digital currency in 2019, Libra, many people were surprised at the news. Few months after Libra's announcement, Facebook released its official whitepaper to the general populace, and eyebrows were raised.
In his essay, Fred Wilson wrote in AVC blog about technical innovation, business model innovation, and the last two big waves we had in the tech industry:
The ECB (European Central Bank) has published a report stating the digital euro is getting closer to be launched. It gives an overview of a possible roadmap for implementing the digital euro as well as the advantages and disadvantages of a digital currency in the euro zone.
‘Big Tech’ are coming for our banks, but should we be worried?
Vice-chancellor and Germany's finance minister, Olaf Scholz, says ‘No’ to Facebook, ‘Yes!” to digital currency.
Facebook’s Libra project had promised to spark a global financial revolution that would bring unprecedented inclusivity and borderless banking. Within months, Mark Zuckerberg’s stablecoin dream was in tatters. But the death of Libra may turn out to be a positive thing for the crypto landscape.
Over the past decade, cryptocurrency has become a term that everyone recognizes. Whether it registers as some far-out concept that has something to do with invisible money, or whether you are a crypto geek who belongs to exchange platforms and follows various currencies religiously.
Stablecoins are cryptocurrencies that are backed by other assets to achieve a stable value, which creates untold opportunity for the way humans interact with money as they have the benefits of cryptocurrency (borderless, secure, low cost) while protecting the users from volatile price action. They often represent real money (GBP, USD etc) and for this reason are more easily understood by a global audience.
In my Libra project analysis report ( A Business Analysis of the Libra Project), I pointed out that there is still a very good opportunity to develop a new stablecoin that competes with Libra. The Libra project is definitely not the end of the stablecoin project, but a milestone in this process. More stablecoin projects will appear to provide more stablecoin products for the market. In terms of the mechanism for generating stablecoins, other stablecoin products can be substantially different from Libra. In terms of application scenarios of stablecoin, a more suitable application scenario can also be adopted. In view of the fact that stablecoin is still at a very early stage and all the risks of the Libra project, other stablecoin products still have a very high probability of success. As long as the correct strategy is adopted in the design of stablecoin, promotion organization and adoption scenario, it is very likely that the new stablecoin can be better accepted by the market. This article discusses some of the factors related to the new stablecoin.
Coming Synthetic Hegemonic Currency](https://hackernoon.com/making-good-money-the-coming-synthetic-hegemonic-currency-yff4v32xw) Caption: James Gillray, The Old Lady of Threadneedle Street, 22 May 1797, public domain, courtesy of the Bank of England
The American giant must present Tuesday its cryptocurrency project. While waiting for its launch scheduled for 2020, the future “libra”, conceived in partnership with 27 groups, raises many questions: how can we buy them? How will it work? Who to regulate it?
What should digital currency operators consider before creating one ?
Cosmas Wong is a tech entrepreneur and investor who created companies for more than 20 years. He is the founder of Grey Jean Technologies; the genesis of the GNY platform, and also of other strong technology companies. I had the opportunity to make that interview with him, and we discussed the problems of AI, blockchain, and crypto adoption as well as his business ideas.
It's a brand-new year, and oh man, 2020 has a lot on its plate. Last year, we witnessed the benchmark S&P 500 surge almost 29%, crude oil rallied 35% and the bitcoin price nearly doubled since the beginning of the year.
The New Importance of Privacy in Online Marketplaces](https://hackernoon.com/facebook-and-the-libra-effect-the-new-importance-of-privacy-in-online-marketplaces-esfj3y5p) Members of the Libra Association, a group of 28 companies and not-for-profit groups including and brought together by Facebook may soon have the power to forever change the history of the online marketplace worldwide. The Senate and House hearings in Washington July 18th and 19th - as theatrical as they were - may still only be a subtle indication of the grand ramifications of a marketplace where privacy does not exist for buyers and sellers.
Libra Is Not A Gateway Cryptocurrency
Libra - Facebook´s digital currency project - has been a very populartalk lately. Even US President Trump tweeted about it. But few have looked at what may be the hidden implicationsof Facebook´s project.
In my previous article (So Many Public Chains, So Few Dapps), I pointed it out that too many public chains was one of the reasons that there were so few Dapps. App developers really do not want to develop their apps for so many blockchains.
The Ethereum Foundation Devcon is the most important annual gathering of developers, designers, and researchers in the Ethereum ecosystem. This year’s Devcon5 in Osaka, Japan is the 5th Devcon, and as in past years, it is a bellwether of what to come in Ethereum.
Of course, Libra is not a paper tiger. Otherwise it won’t cause theimmediate concern of global financial regulatory bodies and central banks, as well as the hearings by United States congress. But, this project indeed has inherent risks which make it very vulnerable. There is a good chance that it may get seriously delayed or may be forced to shut down if it cannot deal with these risks appropriately. If, unfortunately, it is forced to stop, then its short period of existence is then really a paper tiger.
The lid on the fabled "Facebook coin" project has been finally lifted in the middle of June. Libra, a name evoking an ancient unit of weight, scales of justice and a somewhat clever jab at Winklevoss' Gemini, has already been written about extensively.
The global financial system is comprised of a framework of legal agreements, institutions, and both formal and informal economic actors that together facilitate international flows of financial capital for purposes of investment and trade financing. Our current global financial systems are based on a series of historical events and innovations that brought us to where we are today. Historical markers such as the first minted coin, the use of paper money, the adoption of the US dollar as the international reserve currency, abandonment of the gold standard, and the ubiquity of mobile payments have all greatly influenced the way we exchange and store value on a micro and macro scale.
August 12, 2019
Smart contracts are a unique class of software explicitly designed to manage ownership of valuable digital assets. While existing programming environments can be used to keep track of the ownership of assets, they are most typically used in scenarios where they are reflecting ownership rather than defining it directly. Smart contracts are unique in that the value they represent is often embodied directly in the state they maintain.
The Libra project raised market’s attention to stablecoin to an unprecedented level. It not only forces global financial regulatory bodies and central banks to take necessary measures, but also stimulates market’s enthusiasm in developing more stablecoins. Since Libra’s project scope is too large, it assumes a lot of risks. There is a big uncertainty in its future. But, Libra’s design and its experience can certainly be learned by other stablecoin projects. Better designed and more feasible stablecoins can be brought to the market.
2019 has marked itself not only with the end of the crypto winter but also with time when established technology companies entered the blockchain field. Telegram is going to release its own blockchain with the goal of processing millions of transactions per second. Facebook plans to introduce Libra coin to facilitate payments for 1.7 billion unbanked but connected people.
The mid-term results for the cryptographic industry in 2019 still remain uncertain. On one hand, market capitalization increased by 125 per cent in the second quarter alone. On the other, users have already lost more than $4 billion this year due to the actions of hackers and scammers, which is more than the entire year of 2018. It is unlikely that 2019 will meet the original expectations. Yet, experts predict a lot of interesting happenings for crypto exchanges in 2020.
Photo Credit: Christoph Scholz Flickr via Compfight ccThe people and government of China should be mostly concerned about Facebook’s intended launch of the Libra. The story didn’t just end there because Facebook said that in addition to Libra, the project will also issue a “Libra investment token.”
Something changed on the 18th of June 2019. The day that Libra went public. Facebook’s long rumoured cryptocurrency project, which has rallied 28 world-leading partners, came out of the closet, and with it this new asset class seems to have landed its first concrete, large scale application. With over 2.7 billion users spread across all of its platforms1(Facebook, Messenger, WhatsApp and Instagram), and in response to recent strides into the payment sector and digital wallets by the likes of Samsung, Apple and Tencent, it was time for the group led by Mark Zuckerberg to finally wade into the great cryptocurrency arms race unfolding before us.
An interesting fact about Libra Facebook’s native currency which was announced June 18th, it’s inspired from three distinct elements: the Roman weight measurement system, the astrological sign for justice, and the French term for freedom.
The purpose of this state of the union is the criticize aspects of the Ethereum project and bring awareness to fixable issues while combating general ignorance of cryptocurrencies and the blockchain.
MasterCard and PayPal Backing out of the Promised $10M Investments and more...
Alfred Owen Crozier 1912, on the "Aldrich Plan,"
This editorial was first published in Coinmonks, now re-syndicated with permission and discretion of the original author to reach wider audiences.
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