This "Story" would give you an insight about Bitcoin and Facebooks Libra and their Advantages and Disadvantages and would give you an understanding of what could be our Future currency.
History of BITCOIN:
- The Bitcoin Bubble inflated till 2017 and then got busted.
- It went up to $20000 in 2017 and then its value started decreasing which finally got stagnated near $4000.
- With the recent news of Facebook's libra, There has been a lot of ups and downs lately in its value.
- It went up till $13,000. Its current value is around $8500(value of 1 bitcoin).
What is Bitcoin?
1. Bitcoin is a cryptocurrency, a digital currency which can be trusted.
2. It works on blockchain technology.
3. It is safe because it works on distributed ledger and is very difficult for anyone to steal. It may take more money to hack Bitcoin than buying them.
Advantages of Bitcoin:
- This could resolve various middleman cost when we need to transfer money.
- It will be a centralized currency which can be used in any country.
Disadvantages of Bitcoin:
- No centralised governing body, there is a risk if you invest your money.
- It is not a stable currency.
Future Possibilities of any Cryptocurrency:
- Infinite expansion: More and more people will start accepting bitcoin and it may reach a point where it is a centralised currency which everyone accepts.
- The big crunch: The bubble inflates and inflates then burst which happened lately in case of Bitcoin.
- The flat universe: It will stabilize in future and then will not fluctuate enough.
All About Libra:
- Facebook’s proposed digital currency.
- The Libra is the latest attempt by a big western technology firm to weaken the reach and power of national governments.
- Facebook hopes to roll out Libra in June 2020.
- Facebook wants to develop both the transfer system and the currency.
- There will be a different app for Libra transactions named Calibra.
Difference Between Bitcoin and Libra.
- With bitcoin, transactions are recorded anonymously on a public ledger known as the blockchain but unlike bitcoin Libra’s blockchain can only be added to it by a group of trusted parties.
- Libra is aimed at maintaining a stable value, unlike bitcoin which experience high liquidity.
- Facebooks Libra is governed by supply and demand, Its partner companies can adjust the supply. Bitcoin, on the other hand, has a fixed supply of 21 million.
Advantages of Libra:
- Facebook’s entry into digital currencies will bring greater legitimacy to the sector, unlike Bitcoin.
- It will allow its billions of users to make financial transactions across the globe without any transaction charges.
- This would make the Transactions as easy as sending messages.
- A mobile currency will bring into the economy people who do not at present have a bank account
Disadvantages of Libra:
- This could become a way for many foul practices like corruption, tax avoidance, drug dealing, or become a haven for terrorists and criminals.
- This would be a direct threat to the banking system.
- The data Libra transactions provide could be mined, like all the other data that’s come into Facebook’s possession so data privacy would be compromised.