The release of the white paper about Facebook’s digital currency resulted in extensive media coverage, ensuring information about it was widely accessible. In this post, we’ll be covering the 7 important things you need to know about Facebook’s “revolutionary” currency, Libra.
It Is a Stable coin
A stable coin is a type of cryptocurrency that is tethered to other stores of value like gold, securities, fiat money or other cryptocurrencies in order to reduce volatility. When launched, Libra will be a stable coin because its value will be based on a group of existing currencies including the Euro, British Pound Sterling, Japanese Yen, and the US Dollar. It will also be pegged to a security token called Libra Investment Token.
From Permission to a Permissionless Network
On a permission-based network, Libra would be in charge of authorising those who can have access to the Libra blockchain. On the permissionless network, anyone who meets certain technical requirements can have access to the blockchain. Libra is taking this route to monitor the blockchain closely in its first few months before opening it to the public.
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It Is Built on The Libra Blockchain
The Libra token is built on the Libra blockchain. Unlike the Bitcoin and Ethereum blockchain, a new programming language has been drafted for this blockchain. The name of the programming language is Move.
The Libra white paper also states that transactions that would be carried out on the Libra blockchain would be private transactions. Users identity would not be visible as users would only need their public and private keys to carry out transactions.
It Is Not Run by Facebook
Unlike what most people assume, Libra is not run by Facebook. Instead, it will be run by an independent body known as the Libra Association. Even though this body is an offshoot of Facebook, the white paper states that it works independently of it. Many people believe that this is a move by Facebook to remove this new finance project from the privacy controversy that Facebook is known for.
Another fascinating thing is the white paper is not signed by Mark Zuckerberg or Facebook’s Head of Blockchain Engineering, Evan Cheng. According to the White paper Facebook would only Facebook is only a partner.
It Will Operate Smart Contract
A smart contract operates pretty much like a normal contract except that it is a set of codes on the blockchain which automatically means that it is decentralized. The Ethereum blockchain was the first blockchain to enable smart contract functionality.
Backed by Star-Studded Companies
Its Founding Members as they are called, are companies that are in partnership with the Libra team on this project. Founding members participate in the responsibilities of governance, implementation and strategy.
Some of its founding members are Booking Holdings, Facebook’s Calibra, Amazon, eBay, Paypal, Mastercard, Uber, Visa, Vodafone, Coinbase, Women’s World Banking and a group of others.
There Have Been Mixed Reactions
Reactions to the release of the Libra white paper haven’t been entirely positive. For a start, it has been hit by a host of regulatory hurdles in Europe. As there’s concern about the challenges it would pose for already established financial institutions like banks.
Then there’s also the privacy issue. Facebook has a bag of privacy issues attached to its name which raises red flags in some quarters.
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This article is in partnership with Quidax. Quidax is a European based cryptocurrency exchange with a focus on Africa. We provide a seamless platform for users to send, receive, buy and sell cryptocurrencies using their local currencies.
Crypto market surges above $2 trillion, as Bitcoin stages a huge comeback above $60,500
The global crypto market value at press time stood at $2.05 trillion, a 3.85% increase over the last day.
The flagship crypto is recording a significant buying spree as Bitcoin bounced above the $60,500 price level once again.
The global crypto market value at press time stood at $2.05 trillion, a 3.85% increase over the last day, with Bitcoin having a market value of $1.123 trillion and a circulating supply of 18,678,481 BTCs
Bitcoin’s price is currently $60,638.55.
Bitcoin’s dominance is currently 55.36%, an increase of 0.21% over the day.
Investors are moving their funds to Bitcoin after an avalanche of COVID-19 stimulus shocked the crypto market since last year amid fears of rising fiat inflated currencies coupled with leading business brands adding more buying pressures on Bitcoin with BNY Mellon, America’s oldest bank giving its approval on the new digital gold as it makes a debut into mainstream investment assets.
Consequently, MicroStrategy now has 91,579 BTCs worth about $5.54 billion while Tesla holds 32,608 BTCs, hinting that more global business brands may take such route to hold the most popular crypto as a treasury tool amid concerns that just 21 million BTCs will ever exist with about 4 million BTCs already lost forever.
Recent price action suggests that bitcoin bulls are holding on tight as they built strong support around the $58K area.
— Yann & Jan (@Negentropic_) April 8, 2021
That being said, crypto pundits argue that bitcoin still faces strong headwinds in the coming months amid growing regulatory concerns. There is also the bias that its high volatility is making it challenging for some traditional investors to come on board and its massive electrical consumption via the blockchain has also put it at odds with many environmentalists.
Meet the billionaire twins who bought $10m worth of Bitcoin when it still sold for $8
The Winklevoss twins’ early investment in Bitcoin has propelled them into the billionaire league.
The digital asset economy has made many people rich. The current worth of Bitcoin, a digital asset that was trading a little above $100 in October 2013, is now near $60,000!
While many people were smart enough to invest in Bitcoin early, not many had the guts to go all out for it. Today, we are going to look at the identical twins who were crazy enough to invest heavily in cryptocurrency. The twins started investing in Bitcoin as early as 2012.
They are currently listed on the Forbes Billionaire List amongst the newcomers who reached a billion-dollar status due to their Bitcoin investing.
Meet the Winklevoss twins (worth $3 billion each)
Cameron and Tyler Winklevoss are currently worth $3bn each. They started investing in Bitcoin as early as 2012 when the cryptocurrency still sold for $8 and splurged a whopping $10m to purchase the crypto asset, making them one of the biggest and earliest investors in cryptocurrency.
Their gamble paid off and today, they are worth a collective $6bn.
More investments in crypto
The Winklevoss twins are not slowing down, they are instead, making further investments in cryptocurrency. Recently, they invested in a Bitcoin lending start-up named Block-Fi which is now valued at $3bn.
Battle with Mark Zuckerberg
The Winklevoss twins are no strangers in Silicon Valley. They were Mark Zuckerberg’s classmates at Harvard and they once accused the tech billionaire of stealing their idea for Facebook.
A bitter legal battle between the two ended in the twins receiving significant cash and Facebook stock compensation from Zuckerberg. Some of their cash compensation was invested in cryptocurrency and it has indeed, paid off.
What you should know
In their early days, cryptocurrencies witnessed an unstable growth path, rising and falling occasionally. This discouraged many people from investing heavily in it. The Winklevoss twins took the risk on Bitcoin and are now billionaires on Forbes list. Currently, they run their company, Gemini, a regulated cryptocurrency exchange, wallet and custodian that makes it simple and secure to buy Bitcoin, Ethereum and other cryptocurrencies.
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