The more news appears about the imminent start of crypto currency GlobalCoin on Facebook, the more experts are speculating on what effect the giant social network will have on the entire industry. Some are very skeptical. Critics believe that the foray of the company from Silicon valley is nothing like a government “Trojan horse” that one step will bring us closer to the scenario of Orwell’s “1984”.
However, there are those who see in the launch of the so-called Globalcoin or Libra is extremely favorable prospects for Bitcoin. There are even allegations that the event will be a major catalyst for the adoption of Bitcoin, and therefore growth rates of the largest cryptocurrencies.
Spencer Bogart of Blockchain Capital shared their thoughts on this matter on Twitter. First of all, he explained that the cryptocurrency from Facebook format stablein will have “one of the most bullish external influences on BTC in 2019-2020”. He also argues that another powerful catalyst for the growth of Bitcoin will be quantitative easing, that is, inflationary fiscal policy. Bogart calls it a”stir among Central banks in the weather for easy money around the world”.
For better or worse, Facebook’s crypto effort is among the most bullish external tailwinds for Bitcoin in 2019/2020 (topped only by reinvigorated push among central banks for easy-money globally)
— Spencer Bogart (@CremeDeLaCrypto) June 11, 2019
Bogart also sure that the corporate cryptocurrency will smooth all the roughness in acquiring digital assets and will greatly facilitate the entrance of the ecosystem for a large number of users. Once Fiat money will flood into Globalcoin, the investor is counting on their continued movement and interaction with other ecosystems — like Bitcoin and Ethereum.
Facebook making a decisive step from the point of view of the adoption of the digital asset, creating a circular economy. This is good, because the Corporation has all the financial resources to eliminate rough edges.
As soon as people will have any digital assets, they predictably will look for ways to exchange them for bitcoins. It is also important that Globalcoin will stimulate the growth of the cryptocurrency infrastructure: from custodial solutions and wallets to compliance and kryptomere with the exchange.
In addition, under the assumptions Bogart, after the release of the cryptocurrency Facebook “major financial institutions” and “payment service providers” will become more loyal to Scripturally and may themselves go to create something significant for this market. And to top it all Globalcoin will”legitimize the concept of the public blockchain and digital assets”.
According to the former Executive Director, wall street, Caitlin long, start with corporations and governments generates interest for the wider industry. One day long have already covered a similar topic in Forbes. As she notes, when the information field was filled with references to the Venezuelan Petro — oil-backed cryptocurrency that aims to save the country’s economy from hyperinflation, the interest in Bitcoin has also experienced rapid growth.
The same thing could happen this time. Only the account goes not on millions and billions.
What are the disadvantages?
In theory it sounds pretty good, but there are drawbacks associated with the advent of Facebook in the industry of Finance. In his article for Forbes Kathleen long raised the question of what governments around the world will consider cryptocurrency Facebook as “honey smeared” data Bank on spending users.
While it is unclear what exactly the government will be able to use this to their advantage, but surely will find a way to take control of this information.
In our cryptodata of hontarov there are still a lot of other useful information. Look.
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