It seems like the only thing fueling bitcoin over $9,000 lately has been the news of Facebook to launch its own cryptocurrency called Libra or Global coin.
There is high speculation that this news is what is currently pumping bitcoins price. But is this a false hope ?
At the moment all I can do is speculate myself as to what it means for Bitcoin and cryptocurrency.
On one had yes it brings cryptocurrency to millions of people. They will finally have a very easy to use interface, be able to earn a little from watching ads and be rather seamless when sending this coin from one person to the other with lower fees and faster transactions.
Now this all sounds great litterally millions of people using cryptocurrency on the daily. However from what I can tell it will be totally centralized.
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It will be pegged to various FIAT currencies so most likely a stable coin meaning the price will rarely if at all fluctuate. $1 in Global coin/Libra will always be $1
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Not sure if it can be traded on markets- the addition of coinbase in part of the supported lineup gives me hope that Libra will and can be exchanged for bitcoin. If that is the case we could see some movement there however I feel it will be small and slowly progress. I find it hard to believe that it will be since it most likely will be pegged as a stable coin. And we all know the wonderful history of those lol
Overall my general feeling at the moment is Bitcoin is highly over valued at the moment. The run up from $7,700 to where we are today seems fueled bit Facebook and that fuel seems very misplaced with the information we are getting so far.
Tomorrow we should get the whitepaper from Facebook and have full details on what it is and how it will work and that I am excited for!
