For starters, what is cryptocurrency?
It’s a digital asset designed to work as a medium of exchange that uses strong cryptography to secure financial transactions. That is the common explanation of cryptocurrency.
A small look back at how it originated. It was back in 2008 when Satoshi Nakamoto invented Bitcoin, it was made as an electronic cash system. Satoshi made Peer – to – a Peer network for file sharing and that’s how cryptocurrency was made.
But what does Facebook Cryptocurrency mean?
As far as the media share information about this new project, we know that it is called Libra and GlobalCoin. This would mean that anyone who uses platforms like WhatsApp and Messenger, will be able to transact in the cryptocurrency with customers. That would be a big breakthrough for a lot of businesses – a simple and easy way how to make a transaction with low or without a fee.GobalCoin would help developing nations.
Facebook may encourage more people to be more involved in cryptocurrency. Through this social media platform, people will learn more. As some people predict that users will turn to bitcoin because bitcoin is scarce. More information will be released on June 18. But the GlobalCoin will be launched in 2020, but the trials will start at the end of this year.
What else do we know?
There will be more than one currency to prevent price fluctuation. Facebook Cryptocurrency will be a stable coin, it is designed to have a stable price to prevent any complications that may appear during a payment. As previously said, Facebook will use its products (WhatsApp and Messenger) to avoid the usage of devices such as ATMs.
The new project will gather a lot of powerful people, such as PayPal president and VP of Facebook Messenger David Marcus, Instagram VP Kevin Weil, and Facebook’s former corporate head of treasury operations Sunita Parasuraman. It seems that every social media platform will be part of the mysterious project Libra. None of these people have worked with cryptocurrency in the past, but some of them have a financial technology background.
Facebook is inviting others to participate in cryptocurrency projects, but the charge for this great privilege is 10 million dollars. The project hopes to launch its network with hundred nodes, as they call it that, generating 1 billion dollars in licensing fees. And they plan to pay their employees with cryptocurrency, of course, if they wanted to.
Is this the end of physical money and banks?
Maybe someday, but it is too soon to say. It seems that more and more companies try to make ways how cryptocurrencies may work for them. And why not? It is a secure way how to guard your assets. And it is a great way how to avoid fees and banks. That is the beauty of cryptocurrency, it is an independent non-banking currency. You can buy it, you can exchange it. And soon Facebook will launch its cryptocurrency project, which actually will allow a lot of people from all over the world to get into the depth of cryptocurrency. Facebook will be their guide on how to manage everything to know about virtual currency.
