Bitcoin Not A Niche Anymore – Libra Not Going Away Anytime SoonAugust 27, 2019
Regulators have been piling criticisms on to Facebook’s cryptocurrency Libra ever since its launch has been declared. Facebook has corroborated at least 27 other companies during June.
Libra is considered to be at least in theory, a threat to the jobs of privacy regulators, finance ministers, and central bankers.
Libra has caused financial regulators to develop a more severe outlook at digital currencies.
Ido Sadeh Man, an Israeli entrepreneur, stated, “Ten years ago, regulators didn’t care about Bitcoin.” He further added, “It was a niche. They were all sure that it was going to go away and vanish on its own. That’s not the case anymore.”
The governments might potentially lose their ability to control the monetary policy if Libra and other cryptocurrencies go mainstream.
The oil is priced in dollars, and therefore, the USD has a lot of power — the US government controls which banks interact with the USD. Thus, considering the sphere of influence, the US can control the direction of global economics and ultimately, the global political situation.
With the coming of Libra and the stabilization of other cryptocurrencies, the current control will slip out of the hands of the US.
The partners of Libra like the PayPal and eBay are well-established in the e-commerce space, and they have a gigantic influence in the eCommerce world, and therefore they have the inherent capability to move value around quickly.
The cryptocurrency market is currently becoming very mature, and it is progressing towards institutional players. Several institutional investors are attracted by the diversification opportunity provided by Bitcoin and the overall cryptocurrency market. Due to the low ROI in traditional financial instruments and the low rates, the potential return on BTC seems to be higher.
Experts, however, say that Bitcoin is an extremely risky asset and they opine “It’s still one of the most volatile assets on the planet. We just dropped from $10,800 to $10,000 in a few blinks.”
Binance is all set to launch a lending platform later this month. However, there is a widespread opinion that it is probably a lot of hassle than it is worth.
Chanpeng Zhao, Binance CEO when talking about “Binance Lending” feels let users “earn crypto in their sleep.” Binance is looking to establish themselves as a “value add” service for those users who are holding idle crypto. Those who have idle crypto can offer them to Binance for use, thus making their idle money work for them.