Bitcoin and libra have very different characteristics
Facebook announced that it is about to launch its own crypto currency called libra. The news aroused concern among economists, financial authorities and central banks around the world
The U.S. Congress has been concerned about the power that already accumulates Facebook through the data of its 2,380 million users worldwide. However, there are doubts about how people’s money and data will be protected from value volatility.
Bitcoin is the currency that dominates the sector; is the best known of the currencies created by blockchain technology, and which allows information to be cut up and its pieces to be stored on different computers around the world.
“These new instruments could do for payments the same the Internet did for information: to send money safely, instantly and almost free of charge,” said David Lipton, acting director of the International Monetary Fund.
In practice, since Facebook owns Whatsapp, libras can be sent like a photo chat. The same will happen with Messenger. But beyond sharing the technology that supports them, the differences between bitcoin and libra are enormous. Here are some of them.
Centralization
The currency of the technological is controlled by the law and is subject to the rules of regulators. The 27 founding companies that support Facebook in this adventure and will form the Libra Association. The companies under this alliance will be the only ones that will be able to make transactions with the currency.
Value
While the value of bitcoin is determined purely by the supply and demand of its market, the value of libra will be determined by whether a basket of assets goes up or down.
Anonymity
Bitcoin owners are anonymous. Facebook accounts will be verified. Those who want to open a Calibra portfolio, will have to present an official identification, as it is done now when opening a bank account.
Source: Radio Rumbos
