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Libra’s heavy promotion, Facebook’s massive customer base may be beneficial to Bitcoin

Akash Anand



Libra's rampant promotion and Facebook's customer base speculated to be beneficial to Bitcoin
Source: Pixabay

Bitcoin and Libra have been vying to take the top spot in terms of developments in the cryptocurrency space over the past few weeks. With Bitcoin briefly hitting the $13,000 mark, the industry has been on an upward climb, with many proponents connecting the ramifications of the launch of Facebook’s cryptocurrency with the sudden price spike.

In a recent discussion with a CNBC panel, Bart Smith, the Digital Assets Head at Susquehanna, spoke about how the popularity of the Mark Zuckerberg-led company may actually be beneficial to Bitcoin. Smith stated,

“Libra is not a cryptocurrency but rather a digital token and it is important to delineate those two things. Libra is a stablecoin, backed by fiat banks where the transactions are approved by corporations. The fact that it uses blockchain technology  to move assets is exciting and that is one inherent feature why Bitcoin might get a boost.”

The Digital Assets Head claimed that when people dig into Libra, they will run into Bitcoin too which will cause an increase in information and awareness about the world’s largest cryptocurrency. According to him, if some percentage of the people involved in Facebook’s project take an interest in Bitcoin, it will still be a positive sentiment boost for the cryptoverse.

Libra has been getting some stick from various sectors of the cryptocurrency industry, with some even pointing out the irony that Facebook should be “the last people to be in charge of people’s money.” Some major players like the Bank of International Settlements [BIS] also voiced its concerns about the latest project from the social media giant. A report by the central bank of central banks said,

“On the other hand, a big tech could be small in financial services and yet rapidly establish a dominant position by leveraging its vast network of users and associated network effects. In this way, the rule of thumb that encouraging new entry is conducive to greater competition can be turned on its head.”

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Engineering graduate,crypto head and Arsenal fan. Is fascinated by technology and all its marvels. Strictly against pineapple on pizza.