The last three months trend, of the rise in the Bitcoin from trending somewhere in USD5000, to about USD11,500 as on date. This rise is being attributed to the fact that the demand for the cryptocurrency has been on a surge. But it is now facing competition from Facebook with the introduction of Libra. This would by far be the biggest launch of cryptocurrency, that too by a social media platform.
The social media giant recently announced its foray with cryptocurrency called “Libra”. On the positive side, this would increase the adoption and awareness of Cryptocurrency. With the reach of Facebook over half the population of the world, the launch of a mainstream cryptocurrency will only increase the value of all the other cryptocurrencies trending in the market. The increase in demand would help the adoption faster among the masses.
But the biggest question remains as to why should people trust a social media platform with handling their financial decisions? Isn’t decentralization the first advantage of dealing with cryptocurrency? Facebook controlling Libra’s inception to introduction and distribution, puts a huge question mark on the very foundation principles of Cryptocurrency.
Advantage for Bitcoin?
Since Bitcoin still remains to the true Cryptocurrency methodologies of trading, the introduction of Libra would actually surge the demand for Bitcoin. One should understand that the safety of Bitcoin trading is associated with the cryptocurrency itself, and not on the services that are based on Cryptocurrency.
In 2014, one of the world’s biggest Bitcoin exchange Mt.Gox had filed for bankruptcy, as there was an overnight loss of close to 450 million USD worth of Bitcoin. This was the biggest blot in the face of Bitcoin since people started to fear the legitimacy of the cryptocurrency. But at the same time, we realized that cryptocurrency being centralized like the way Mt.Gox did, just defied the very foundation of bitcoins.
Facebook should not ignore such lessons from the past and should plan to secure transactions of its cryptocurrency. With the recent issues with Facebook users facing privacy thefts and many unlawful social elements using Facebook to lure gullible users to honey-traps. These issues put forward a huge task for Facebook on the grounds of cybersecurity.
Power to Many:
Bitcoin trading has been traditionally more of a decentralized affair. Anyone can help new users get acquainted with the nuances and advantages of trading in cryptocurrencies. The advantage to this is that it empowers individuals to start up their own business and help others to step into the foray of cryptocurrency trading. This promotes an equal opportunity market where there are no boundaries to trade and the inherent security of Bitcoin reassures people. Logging in to certain experienced traders website such as Bitcoin Profit Login have enabled new users to adopt the cryptocurrency exchange that enables their financial independence.
Social media has increased the awareness of the world with respect to the latest trends in lifestyle and has increased the aspiration values for the social entrepreneurs who have built their business on the platform. Cryptocurrency too has disrupted the traditional centralized banking system and has given the power to the people to have the private key to their own financial wealth. Amalgamating the two worlds- Social media and Cryptocurrency trading would mean that the two institutions would be in crossroads at some point, centralized control over social media content to decentralized trading of cryptocurrency.