It’s understandable why politicians talk about breaking up the big tech companies. They just keep expanding and getting into more and more areas. Google, Amazon, Apple: they all just keep broadening their scope, taking on more and more capabilities.
Facebook is no different. They are expanding beyond being just a social network. They’re a messaging service and also have introduced a screened-communication tool, Portal. Moving past that, this week Facebook announced a new cryptocurrency, Libra, that will make its debut in 2020. Will you trust Facebook’s new cryptocurrency, Libra?
Ryan believes adopting Libra is going to depend solely on how stable it is as a universal currency, as only a few will adopt if it is volatile. He thinks “it will be great for people who want to avoid massive fees and ‘geo-tax’ based on location.”
While it won’t be “anonymous,” it’ll be stable, so adopters won’t have to worry about the huge swings in value. He figures it all depends on how you will be using it, if you want to avoid the fees and charges associated with big banks, and if you’re looking for a way to buy and sell coin to make quick money, it’s not for you.
But he, personally, will trust Libra. Since “Facebook can’t afford to have another huge misstep,” he doesn’t think they would be rolling this out unless it was 100 percent ready to go.
Andrew, the author of the article linked above, says he will trust it, though he didn’t initially think he would. “Facebook’s recent privacy/security issues have made it rightly sensitive to how stuff like this is going to look,” and he thinks they’ve taken those lessons and applied them.
If you want to know more about what he sees as the value in Libra, check out his article, but overall, he’s sure it will be a convenient way to send money for a low fee and that it will be a successful Facebook product. He sees it as inevitable for Facebook to move into this genre.
Because of the anonymity that is desired in the cryptocurrency market, , Sayak doubts Facebook can cut it with the average investor. He believes “what they’re really selling with Libra is another digital currency that is being backed” by the “big fish” in the tech world. If they succeed, they’ll have “the kind of financial muscle most corporations can only dream of.
Additionally, he figures that with enough investors, they can become “more powerful than the federal reserves of many small and medium countries.” He thinks there will be many users “who wouldn’t want to join this circus initially, but unless there is active government involvement, it’ll be impossible to stall this development.”
Damien trusts nothing from Facebook. “Unless it becomes popular and every site is using it, I don’t think I will use it.”
Kenneth has never been a fan of cryptocurrencies, forex, or anything to do with digital currencies. For him, “it’s a hard pass.”
Phil isn’t really big on cryptocurrencies, and it’s not because they are insecure or virtual. He just doesn’t see the need. He concurs with the other writers regarding Facebook and their track record. He doesn’t trust them with what he already gives them, let alone his money.
Miguel notes it’s not just a “Facebook coin” and that it’s not a permission-less blockchain, making it not as decentralized as Bitcoin and others. After examining the technical documentation, he’s still “having trouble seeing how they can possibly make this a permission-less blockchain in the future,” as it’s too vulnerable in its current state and will require an overhaul to make it secure enough. The way he views it, “Why another coin? I don’t see the point.”
I’m kind of in the same camp as Phil. It’s hard to trust Facebook as a whole. And I really don’t know enough about cryptocurrencies to venture into that, and I don’t see the point. I can exchange money online in many other ways. However, I do put my trust in Facebook when it comes to PayPal. I often send donations to the charities that request money on my friends’ birthdays. But this one is too much of a jump for me. I have no need, and I don’t know much about it. There’s just no point.
Basically, our writers see all the reasons why Libra can’t be trusted, and sometimes it has to do with Facebook itself and sometimes just because it’s a cryptocurrency. But some still see value in it. What about you? Will you trust Facebook’s new cryptocurrency, Libra? Add your thoughts to the comments below.