Is Facebook Libra A “Drama?”
By Sujith Somraaj on ALTCOIN MAGAZINE
Most people think cryptocurrencies as a threat to the world economy and the US lawmakers are creating a hype around the facebook’s libra stating that it could probably damage the valuation of the USD (United States Dollar) but the reality is the US Lawmakers are promoting facebook’s libra in an adverse way. Without knowing they are comparing a normal and unestablished Libra coin with the world’s most powerful denomination.
Is Libra Valuable?
Libra, on the other hand, mentioned it clear in their technical document that the Libra coin will be backed with fiat & other central banks, this means that the Libra is just a representation of the physical assets(cash). It is just a representation of the digital version of cash and it has nothing to deal with the economy.
Financial Monarchy
Libra is also a gamble because if people started using the Libra coin then they will again be prisoned under the financial monarchy under the govt as these digital assets are backed with central banks, and they continue to rule the world. But this cash is not a hard asset and it is the main reason for a financial crisis in the near future will be due to central banks because the value of this cash is not pegged to anything physical. But on the other hand, bitcoin is a crazy solution for this.
Bitcoin Is Valuable
People say that the value of bitcoin is out of nothing, but do the denomination you hold do have any value? They can be used to purchase and exchange things and it doesn’t mean that they have a value. If bitcoin is accepted by merchants then it will automatically gain its value and will be equal to fiat currencies. So people making statement bitcoin is based on air is baseless.
Poor Blockchain Governance
Libra doesn’t mention anything about the governance of the blockchain, either it is off-chain or on-chain. So it is again trying to enslave people as we assume it to be off-chain mechanism then the core developers (Facebook) will have all the rights to alter the chain and fork it. If it happens in future once Libra is launched and gained all the virtual currency users then indirectly we will fall under the rule of central banks who back the Coin.
Disclaimer
So this article is not to blame or make anyone suffer but it is to mention the drawbacks of Libra coin and it is done in the interest of educating people about blockchain. This may or may not reflect the exact scenario as these are only the views of the author and have nothing to damage or spoil the reputation of anyone or any company.
