socsecadm posted on July 07, 2019 13:55:14
Very legit but the problem is dominance. It might lead to a monopoly or an oligopoly. It appears difficult to compete with such a large, dominant corporation. They have deep pockets and they might be willing to take great initial losses to drive out competitors.
mistergrin posted on June 21, 2019 08:56:43
Libra isn't as shady as I originally thought. Here are some reasons why:
1) They are led by an independent association for which Facebook is only 1 member out of eventually 100.
2) They want to move to eventually a permission-less blockchain (though we'll see if that ever happens).
3) They wont be vetting developers so people can build whatever they want on top of the platform. (this may not be a good thing though)
4) Anyone can build wallets and other apps for Libra
5) Financial data will be siloed from Facebook's social media data so they can't use your transactions to target you with ads.
That said this is still in the very early stages and Facebook is making a huge industry shattering move which is causing many regulators and also competitors to shake in their boots. So I will rate neutral for now and just wait and see.
Dr. Doom posted on June 19, 2019 22:34:21
Facebook's long awaited "cryptocurrency". I am as good as 100% sure that this coin will not exit scam, so simply for that matter it can't really get the lowest confidence score. Besides that it is supposed to be backed by a basket of fiat currencies, which should keep the value of the coin relatively stable; for sure much more stable than many of the world's unreliable fiat currencies. Because essentially it is a stablecoin, no speculation on rising value (like other crypto) can be expected, neither substantial losses, because it should keep its exchangeable value.
The project however is NOT a blockchain (we can conclude that from statements from the whitepaper) and eventhough it is much more decentralized than any individual fintech company, it is still a centralized coin that will be subject to regulatory restrictions and censorship. It will also not be permissionless, and eventhough there is the claim of intention for transitioning to permissionless, no solution is given that we could rely on.
I will not trust this coin for one single bit and stay absolutely away from it whenever it's released in 2020, because I do not trust facebook with personal data and privacy (especially towards governments), let alone with financial transactions. Facebook has repeatedly demonstrated it cannot be trusted on its promises. Furthermore a multitude of companies that are among the founding members, with facebook leading the pack on that front as well, are known to be very trigger happy on censoring speech, deplatforming individuals and even financial censorship. No doubt the validators will not shy away. Financial censorship, full scope financial surveillance and confiscation by governments will also be very easy, as it would take only a phone call to the Libra Association.
If Libra can overcome the many regulatory hurdles and pushback (which will probably result in dumbing down even more of the blockchain/cryptocurrency properties and be more like traditional fiat systems), it might eventually become a force to be reckoned with nevertheless because of user convenience, access to Facebook's userbase and the Sillicon Valley's art of disruption and putting the right incentives in place for network adoption. And I am sure in that case it might very well be a tool for the billions of unbanked people to finally get ahead. Users should nevertheless be aware of the (above mentioned) risks that are associated with Libra as well.
Just because Facebook is trying to sell this as a blockchain based cryptocurrency, which is supposed to have open access to anyone and be very privacy focused, I am inclined to believe based on what I am reading, that those statements will turn out to be rather deceptive.
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