In 2020, Facebook plans to formalize the use of its digital currency, Libra. Although there are a number of differences, Libra is predicted to defeat the popularity of Bitcoin.
Facebook does have a large capital in the form of billions of users and popular applications such as WhatsApp and Messenger which later supports the Calibra digital wallet. According to Michael Levine of Pivotal Research, Libra has the potential to be adopted in the mainstream in higher numbers than Bitcoin.
Especially with the claimed value to be more stable, Levine thinks Libra will be more attractive to prospective users. Retail will also be more comfortable in dealing with Libra.
“They might not want to accept something like Bitcoin if it’s not known what it’s worth a month from now. It could go up by 10%, it could go down by 10%,” Levine said of Bitcoin being vulnerable to fluctuations.
But in the long run, investors assess Bitcoin could develop into a kind of asset and compete with traditional asset sort of gold. While Libra based Libra Reserve, as well as tangible assets such as currencies, may be less attractive to be an asset.
However, quoted BTYNews of CCN, Levine believes that Libra will target impenetrable by cryptocurrency today, namely as a trusted means of payment at retail or merchants, so it is natural that Libra’s adoption and popularity will increase.
“The usefulness of Libra really depends on how widely it is accepted. Early indications are that Libra has the potential to become mainstream, but only time will answer it,” said Bruce McClary, a spokesman for the National Foundation for Credit Counseling.
The stumbling block may be a matter of mistrust of people on Facebook regarding privacy. “It’s hard for me to see people who pay attention to privacy will adopt this new offer, especially because Facebook’s ridiculous track record of respect for privacy,” said Brian Krebs, a cybersecurity expert.