Facebook announced its newest projects called Libra, which immediately sparked controversy of a sort as many crypto and blockchain specialists condemned it. The truth is that Facebook doesn’t really have a positive image at the moment as some recent events led to an overall distrust of this company and the social media giant.
As soon as the white paper was published, hundreds of articles and social media posts hyped it to the point where many believed it affected the price of bitcoin. While there might be some truth to it, Libra is still just a white paper and has a long way to go before it becomes a fully functioning cryptocurrency.
However, crypto fans and pros refuse to believe that Libra is not a good idea, and many also claim that it will never live up to see the light, let alone oppose bitcoin and other cryptocurrencies, and here is why.
Facebook Is Behind Libra
We already mentioned that people simply don’t trust Facebook anymore. They are certainly not going to be eager to invest their money into it, as FB is currently perceived as an “enemy” which has a goal to steal users’ data and sell it to other companies. Although their business model is debatable, we are not going to go into that right now. What matters is that Facebook’s public image is pretty negative at the moment, which could be a cornerstone of Libra’s demise in the future.
It Will Be Centralized
Despite the fact that Libra is going to be built on blockchain, which is essentially a decentralized technology, this cryptocurrency is actually going to be centralized since it will be run by a group of companies that rely on centralized business models.
Therefore, it will be a total opposite to present-day cryptocurrencies and the blockchain technology that actually want to disrupt businesses and make them decentralized. That is to say, blockchain is going to be just a buzzword, but, in truth, it will not matter that much.
Bitcoin Is Already Being Accepted
Sure, Libra is backed by Facebook and a couple of other companies, so they will use all of their power to make it as widespread as possible in a short period. However, bitcoin has a huge advantage as people are overall starting to understand the importance of this cryptocurrency. For example, they can buy and sell things using bitcoin, play games in a bitcoin online casino, trade bitcoin, HODL it, and many other things. Above all, many places now allow microtransactions in bitcoin, meaning you can buy coffee, pizza, and many other things in retail shops.
The cryptocurrency is far from perfect, but it still has millions of owners worldwide who are already actively using it. Now that they are accustomed to it, chances are they would prefer to stick to bitcoin instead of switching to Libra.
Facebook Didn’t Have Success with Similar Projects
Facebook already had similar projects such as Facebook Credits, which nobody really cared about, which is the main reason it was shut down. In fact, the social media giant had many other projects that started as a great idea but were never really realized completely. Knowing how Facebook gives up easily, many consider Libra yet another high-handed project that will not live up to the expectations of those who are working on it, including FB.
People Are Not Prepared
Finally, people are generally still not used to blockchain technology, nor do they plan to switch to cryptos completely anytime soon. Although many are interested in it and use it, the vast majority of people still don’t understand how cryptocurrencies work. In addition, they don’t see the benefits that they can bring to humanity.
However, once they do start to realize the potential of blockchain and cryptos, they will definitely opt for bitcoin and other cryptos that truly are decentralized currencies that aim to put an end to banks and other centralized financial institutions — Facebook potentially being one of them.
Moreover, people are also afraid of scams too. Recently it was pretended by a crypto trading website that one of the top entrepreneurs has endorsed crypto trading through their platform in a dragons den bitcoin episode. But later on, it was proved as fake news.
It is very difficult to predict the future, even when there are numbers that can help us draw certain conclusions. Maybe Libra turns out to be a success in the end and completely overtakes bitcoin and other cryptos — who knows?
However, until then, we need to stick to the stats and intentions that FB has with Libra in order to reach the most logical conclusion at this point, which is that Libra will never be as popular as bitcoin (or Ethereum or other popular altcoins).