Source
Facebook is starting to reveal the scope of its new token and how things are being set up. This is a game changer for the world of money. It is going to be fun to watch the process unfold.
For some reason, this put a lot of fear in people. Many feel that Facebook's move will mean the end for cryptocurrency. On the contrary, I am going to show how the exact opposite is true.
So let us look at this from a few different angles.
The Good
There is going to be a lot of good that comes out of this.
To start, cryptocurrency, the second that Facebook releases this, is instantly validated. No longer is it something for the geeks and anarchists. Cryptocurrency is entering mainstream. Some of the world's largest financial corporations are paying to be a part of this. Names like Visa, Mastercard, and PayPal are ponying up $10 million to set up nodes. This move has a lot of force behind it.
More importantly, Facebook is going after the unbanked. This is vital to the freedom of humanity. Over 5 billion people are considered unbanked or underbanked. What this means is they do not have access to reliable banking services. No matter how corrupt things are, the western banking system is fairly stable. This is not true in many parts of the world.
This is also going to provide those people with a stable currency. One of the big problems with the present system is that many central banks/governments obliterate their currency at the expense of the populous. Tremendous wealth is lost (confiscated) through this. Venezuela is the latest example of what we see take place so often.
Finally, Facebook is going to introduce the masses to cryptocurrency. This is huge. How often have to tried to tell someone about a blockchain application only to have to then delve into what cryptocurrency is and how it works? Ultimately, you get something like "oh like Bitcoin". If your experience is like mine, you end up throwing up your hands and saying "forget it".
The Bad
Make no mistake about this, it is a centralized system. What Facebook is doing is taking on the banking system. It is the reason why we see so many banking entities signing on.
People attack DPOS as a system that can be easily taken over because you only need to get the 21 Witnesses to agree. While that is true, when you have people from all over the world, it can be tough to do as an outside force.
Facebook's system will have 100 node providers. You would think this is more decentralized. In theory, it is. Until you look at the fact of who those providers are. How hard is it to get financial institutions to agree in screwing people over? It is common practice for them.
What we are going to see is an alternate banking system set up which allows many of the same entities to remain in control. If you are a conspiracy theorist (or one who just does not trust what the mainstream is telling you), what is happening is pretty obvious. The Facebook coin is not about freedom or to the benefit of humanity.
It is being put into place to tighen the control mechanism around the masses.
The Ugly (for them)
This is going to end up in a train wreck. Bitcoin was created as a result of the games the bankers played. Now, they are trying their best to hold onto a system they are looking at losing control over. Their attempts to destroy Bitcoin, primarily, have failed. That system keeps expanding and growing. Despite all the FUD, people are turning to it, especially in those areas where the governments are so overtly corrupt they are destroying all wealth.
Facebook is the epitome of a company that is completely fails in the trust department. At the core of cryptocurrency is the built in trust that comes from blockchain. This is not present in the Facebook system. While Mastercard and Visa might be more trusted than Facebook, they are still third party entities that are part of the systemic corruption that we are presently operating under.
Finally, we are looking at "surveillance capitalism" being taken to an even larger extreme. How are people going to feel when they find out that every transaction is followed by the authorities? Wait until people start getting letters from wonderful entities like the IRS telling them how they omitted something on their returns. The alphabet entities are going to track all transactions meaning that the masses are going to give up even more information than they do now.
The Optimism
This is going to take a while to unfold because the masses are going to flock to Facebook's stablecoin thinking they are being given something. It will take a while for people to realize they were suckered once again.
My feeling is that this entire deal is only going to enhance decentralized systems. Bitcoin will most likely be one to benefit the most. While Facebook is global, it is still controlled. It is a token without limit that can be inflated at any time (sounds like fiat doesn't it?). Traditional financial firms are jumping on board because this is the last chance to stop what cryptocurrency is doing to their industry. They are desperate to maintain control.
Many cite the fact that only about 1% of Bitcoin transactions are for purchases. They obviously do not understand simple exponential growth. 1% tends to move towards 2% which becomes 4%...and so on.
The truth is that there is no need for companies like Visa, Mastercard, or PayPal. For the most part, we do not need banks such as JPM and Goldman. A lot of what the present system offers, with build out, can be offered via cryptocurrency. By its very nature, it is a remittance system that can take place anywhere in the world.
Facebook could help in taking out the present system of banking and governments. It already is a de facto government without borders. By creating a token, it is providing itself with its own currency which to conduct commerce. This removes the need for much of the fiat around the world.
Of course, with the present path we are on, many feel that a lot of the fiat will collapse. If the forecasts are correct and the next recession is even worse than the last one, governments and central banks will lose trust. Facebook is going to provide people with another, albeit not much better, option.
I predict this will only drive the development on decentralized products and services even more. There are many who are aware of what I am writing. I expect to see a lot of decentralized exchanges popping up over the next few years. These will offer an alternative to the KYC and AML that is being pushed.
We are also going to see millions of millionaires created through cryptocurrency projects. This is going to create a powerful force of anti-Libra people. As our numbers swell, and they will with people being introduced to crypto, power will be wrestled away. Just like the establishment is displacing content creators, it is going to do the same thing with this. These entities simply cannot help themselves.
At the end of the day, these people will not have any more success running the economy using "cryptocurrency" than they did with Fiat. The same wolves are running they show and they will use this platform to enrich themselves at the expense of everyone else. This is simply how they operate.
In the end, it is not going to be pretty for them.
Our path is simple: keep creating and developing to offer an alternative system to the alternative system Facebook is implementing which is really just the same system as we have.
If you found this article informative, please give an upvote and resteem.
The most exciting part about this whole thing to me is the significant increase of fiat on ramps for crypto. Right now one of the biggest issues to more widespread adoption of crypto is how hard it is to get it for most people around the world. Facebook et. al. will make sure that everyone, everywhere, can get the Libra via whatever currency and whatever payment methods they have available, and then they're "in" and they can much more easily trade their Libra for other cryptos.
From what I've read there should be no reason that the Libra won't be available on every major crypto exchange, including decentralized exchanges like BitShares or even Steem Engine. Right now it's super hard for regular people to get STEEM, but I look forward to the day when it's super easy because they all have (or can easily get) Libra, and then it's just a simple exchange away.
That is a great point @yabapmatt. The fact that we are going to see many people with crypto in their possession, either by earning it on FB or via fiat conversion, the fact that they have it puts them in the "game".
With billions entering the crypto world, we are going to see some percentage of that have an interest in Steem based applications. This could open the door to a lot of other opportunities.
I do like the idea of adding Libra to Steem-Engine. I am glad I just bought another batch of ENG. 😁😁👍👍
Libra coin seems no different than Tether honestly.. Just for Facebook.
That's it: major FIAT-onboarding thanks to Libra. Plus: seeing Libra next to BTC/STEEM in all the big crypto wallets might get people curious and dive into other coins as well. Education! Libra is a bullish sign for crypto in general.
YES!!! That's exactly what I've been thinking. Kinda wierd to feel happy about something Facebook is doing, but I do think it's good news for us.
Hi @taskmaster4450!
Your post was upvoted by @steem-ua, new Steem dApp, using UserAuthority for algorithmic post curation!
Your UA account score is currently 6.477 which ranks you at #185 across all Steem accounts.
Your rank has dropped 4 places in the last three days (old rank 181).
In our last Algorithmic Curation Round, consisting of 186 contributions, your post is ranked at #1. Congratulations!
Evaluation of your UA score:
Feel free to join our @steem-ua Discord server
This will be catalysis to the bitcoin and crypto boom into 2020. 🤑
Posted using Partiko iOS
Bro you are right
It’s better be, I need to make some gainzzz 🤣
Posted using Partiko iOS
Exciting times brotha!
I agree that Facebook will likely make blockchain tech and cryptocurrencies mainstream.
It might not fail, though. Most people. even here, care little about decentralization. They care about personal profit, an illusion of safety, convenience.
Last but not least, decentralization in crypto is usually overestimated, be it dev teams, influencers, whales - they often are power centers. All according to laws of physics.
Certainly it is overrated at this point since we are in the early stages. That said, we are already seeing things start to spread out.
I do agree most people do not care...until they have a reason to care. Many of the content creators that were displaced by YouTube did not care either...until they found their accounts shut down. Suddenly, then they cared.
I do not see the move stopping the trend towards greater control whether it is through governmental regulation or a company's own governance. This means there will be a wider net cast with more getting nailed in the process.
We will see how it all unfolds but I look at this as a phase we will go through.
Very well put, I appreciate your insights.
The real question is how much benifts are they going to give :P
Free money=more bitcoins :P
If Libra gives no interest isn't it just better to just put money on the bank?
You just planted 0.10 tree(s)!
Thanks to @fuadsm
We have planted already
8292.66 trees
out of 1,000,000
Let's save and restore Abongphen Highland Forest
in Cameroonian village Kedjom-Keku!
Plant trees with @treeplanter and get paid for it!
My Steem Power = 21547.80
Thanks a lot!
@martin.mikes coordinator of @kedjom-keku
Banks are planning on taking out interest and in the banks of my area right now the interest is a joke bc of the fees. So if the fees are lower and more discounts/benifts to the places it might be a better option.
Really depends on who you are
Oh, where do you live?
#sbi-skip
I foresee a bunch of my FB friends who have seen me talking about Steem for as long as I've been on here getting into this and then saying either, "Oh, it's like what you do on Steem!" or "Why didn't you tell me about this?" LOL
Thank you so much for participating in the Partiko Delegation Plan Round 1! We really appreciate your support! As part of the delegation benefits, we just gave you a 3.00% upvote! Together, let’s change the world!
You've committed thoughtcrime. Your account has been suspended for 30 days and your funds are frozen until you satisfy the following requirements...
Everyone else, pay no attention; continue to enjoy this new, stable, empowering currency we've magnanimously provided.
cryptocurrency, the second that Facebook releases this, is instantly validated.
I was thinking this earlier. Non-crypto people have type-cast crypto people as anarchist idealists, while crypto people have been singing the praises of bitcoin, etc for years! Guess who was right?!
Posted using Partiko iOS
"Surveillance Capitalism"
The adaptation of authoritarian Communist China but that manages to develop much faster than the rest of the capitalist world.
Capitalism will continue to develop its adaptation of the Chinese model of development obviously hoisting a prostituted post-industrial American capitalism.
Great words.
We are witnessing the war between centralization and decentralization right before us.
Stick with decentralization and you will be part of the winners in the end.
Posted using Partiko Android