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Facebook’s Libra is the ‘AOL moment’ and not the only contributor to Bitcoin’s surge, claims venture capitalist




Bitcoin's impressive rally not solely because of Libra unveiling; will not result in another bubble
Source: Pixabay

Bitcoin neared a 16-month high on 24th June as it continued to post significant gains. A lot has been speculated about the impressive rally posted by the king coin. Facebook’s ambitious cryptocurrency and blockchain project may have prompted Bitcoin’s price to surge higher. However, it is not the sole reason for the pump, and neither will it result in another Bitcoin bubble, according to Nisa Amoils, New York Angels venture capitalist, said in a recent edition of Bloomberg Technology.

As depicted by the following 1-day chart, Bitcoin was still surging, albeit gradually, after the short-lived but overwhelming rally in May.

Source: TradingView

While discussing Bitcoin’s impact on the cryptocurrency space, Amoils explained that Bitcoin’s “unique characteristics” as a store of value and as a payment mechanism has helped it evolve after the last bubble. Thousands of merchants have added Bitcoin as one of their payment modes and the number of applications built on top of it have also increased. Some of the prominent names that have Bitcoin as an option are Expedia, Microsoft, and Whole Foods.

The VC added,

“.. the unique characteristics of Bitcoin as well as the institutional build-out that’s occurred since the last bubble in terms of custody, settlements, clearing and also futures and derivatives making this more of a sustainable rally than anything else”

Amoils further admitted to the fact that Libra has a big part to play in education and media, with over 2 billion users on its parent firm’s platform. Referring to a time when AOL was a dominant force in the internet service provider [ISP] race in the late 90s, Amoils said that Libra is “really the AOL moment.”

The venture capitalist believes that Libra is a centralized version of a stablecoin that is backed by a basket of government bonds and currencies. This makes its primary use case as a payment mechanism to compete with other well-known payment channels like PayPal or Venmo or something similar to WeChat or Ali pay.

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Chayanika holds a Journalism degree and is currently working with AMBCrypto. She is inquisitive about everything that the Blockchain Technology has to offer.