- “Bitcoin is its own asset, it’s backed by nothing but its own scarcity and the demand for it,” Coinshares Demirors.
- Libra facing criticism due to Facebook's questionable track record with data privacy and regulatory violations.
Facebook Inc.’s Libra has for two days in a row been answering questions regarding its proposed digital currency Libra before the United States lawmakers. The head of Calibra, David Marcus appeared before the Senate on Tuesday and the Congress on Wednesday. In spite of the hearing before the two houses, Facebook still faces criticism due to its questionable track record when it comes to privacy and regulatory violations.
While on an interview with Bloomberg, the chief strategy officer Meltem Demirors at Coinshares said that Libra and Bitcoin are fundamentally different.
“Bitcoin is decentralized, nobody can control the network or remove users, censor transactions. Libra is not, it’s managed by a group of private for private corporations and entities that are part of the Libra Association.”
On the other hand, according to Demirors:
"Bitcoin is its own asset, it’s backed by nothing but its own scarcity and the demand for it. So there aren’t assets held by any entity that give Bitcoin its value. In contrast, Libra relies on a pull of funds that are invested in currencies and other assets to give Libra its value and this as you can imagine causes fundamentally systemic risks to the users of Libra.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
AI crypto coins rally ahead of ChatGPT creator OpenAI plans to announce Google search competitor on Monday
Barely before the hype around NVIDIA stock gain is over, AI crypto tokens have another bullish catalyst coming their way, which could provide more tailwinds to drive the price of the sector’s tokens.
Ethereum needs a bullish trigger, Joseph Lubin blasts the SEC
Ethereum co-founder alleges that the SEC aims to stifle innovation through its enforcement actions against Ethereum-related companies. Grayscale CEO says he's optimistic the SEC would approve its spot ETH ETF application.
Franklin Templeton declares it’s “Base Season” as the Coinbase low-cost L2 sees significant rise in activity
Franklin Templeton, an investment firm with up to $1.46 trillion in assets under management, has declared that “It’s Base Season.” It comes amid growing activity on the low-cost ETH L2 solution.
Binance fined by Canadian financial regulator over AML violations
Canada's financial regulation body, the Financial Transactions and Reports Analysis Centre (FINTRAC), has fined Binance for refusing to abide by the status quo for all foreign monetary bodies in the country, according to a report on May 9.
Bitcoin: Should you buy BTC here? Premium
Bitcoin (BTC) price shows signs of a potential reversal but lacks confirmation, which has divided the investor community into two – those who are buying the dips and those who are expecting a further correction.