• “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.”

 

 

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