Launch of the Facebook coin, Libra, initiated a new debate in the Crypto World. Here are 24 facts about facebook cryptocurrency Libra. The Author of these facts is Mick Hagen, he is the founder of
@Mainframe_HQ ( $MFT ), a decentralized network for unstoppable applications.
1. Facebook Cryptocurrency Libra, is the most exciting thing to happen in crypto since the launch of Ethereum
2. Zuck hired
@davidmarcus (PayPal, Zong) to go after payments. Apple Pay & Google Wallet were picking up steam. WePay and AliPay in Asia were dominating. Facebook was well behind.
3. Facebook needed to enter payments aggressively. They dabbled in Messenger (Marcus was leading) but the product was too split focus (remember chatbots?). Marcus shares in this recent Techcrunch article about why payments/Libra is so important for Facebook’s business.
4. Many people have already done great analysis on Facebook Cryptocurrency Libra’s tech. Tech is real. They’ve clearly put a lot of thought into it. Deliberate compromise on security/decentralization for scalability/speed. Probably okay tradeoff for now. They aren’t trying to be everything to everyone.
5. Libra NOT even close to decentralized. Neither is XRP or EOS. To me this is okay. Libra doesn’t need to compete with Bitcoin. It doesn’t need to be censorship-resistant or unstoppable. This is a Crypto Trojan horse into mainstream adoption. It’s gateway coin to help onboard masses.
6. The Facebook ecosystem has 2.5 billion people. Almost 2/3 of them active DAILY. Libra doesn’t need to be the best tech. Libra is about DISTRIBUTION. I’m okay with all the flaws when they come bearing this gift of growth. Users are the killer feature of this coin.
7. I have no complaints with Facebook spending millions of dollars helping educate billions of people about crypto. More educated people are, more they will understand the shortcomings of Libra and explore other options (for when censorship-resistance is needed). FAQs on Libra site:
8. Speculation games that are so common in crypto aren’t applicable to Libra. So their success hinges on solving real problems. Currently, they focus heavily on two use-cases:
- Moving money (remittances)
- Serving the unbanked
Both have crypto last mile problem: fiat offramps.
9. Whether you are receiving Libra from a sibling in another country or getting paid Libra as an Uber driver, the coin is worthless if you can’t spend it, use it, or exchange it to local currency. This “last mile” challenge is soo hard to solve globally and compliantly
10. Libra essentially needs to build two networks. Must build a large merchant network (Libra acceptance). And must build a large local exchange network (they’re calling “resellers” in their WP). These “offramps” essential to the value of Libra, and really the holy grail of crypto.
11. I cannot emphasize this enough. If the unbanked cannot use Libra for their daily needs, they will have no use for Libra. If there is no fiat offramp for remittances, then bitcoin will always be better (plenty of local exchange options). Libra is dead. It MUST solve those.
12. Fascinating to see Visa/Mastercard in the partner list. If Libra is successful it will absolutely destroy their businesses. Libra clearly wants access to their merchant networks. And V/MC thinking “keep enemies closer…” We’ll read about this high stakes drama in years to come.
13. Libra did a great job creating FOMO for people trying to get into “The Association” (sounds like bad guys in Mr. Robot). Every crypto VC firm I know trying to get a seat at the table. That roster will be filled only w/ those who can help merchant adoption or fiat offramp — last mile.
14. The initial partner list is just a soft commitment at this point. $10M is a steep commitment. A lot of companies are curious. Libra will be smart to continue to focus on merchants where people can spend Libra every day — rent, groceries, transportation, bills, services, etc.
15. Why would merchants accept Libra? Fees will be less expensive than other debit/credit cards (merchants can pocket the difference or pass savings to customers). More secure than cash ($40B annually is lost in the US due to cash theft). And greater access to customers (only need a phone)!
16. It will be interesting to see how
@square responds. Libra encroaching HEAVILY on their turf (and all PoS players). We know @sqcrypto & @jack are fiddling around w/ @lightning / Bitcoin. Expect fireworks. Competition for getting crypto into a daily habit is SO good for the ecosystem.
17. Libra will be working with banks all over the world. They have to for compliant fiat onramps/offramps. Will Libra ever expose them as partners? It’ll undoubtedly hurt the unbanked narrative. Less sexy when people realize it’s all just a new bank wrapped around the legacy bank.
18. While building out these two global networks (merchant and fiat offramp) in parallel sounds practically impossible, if anyone is capable of doing it, I believe it is Facebook. Not even Google, Apple, Amazon or Microsoft are as well-positioned.
19. Facebook might just pull this off. They have resources. Have the greatest app-level consumer adoption. Demonstrated commitment to open-source (React). Payments network & leadership in Marcus. Due to scandals, battle-tested & ready to deal with regulators/govs. They could do this.
20. Fascinating to see the reaction from lawmakers. Not only is FB doing crypto marketing, but they’re also footing the legal bill. I’d much rather Facebook battle the regulators & defend crypto than Kik’s of our world. Facebook knows how to play and win this game.
21. Facebook has a lot of trusts they need to earn back. They know that. They will go above & beyond to be transparent, open & accountable.
@davidmarcus is at the helm here, not Zuck. The only way Zuck could keep Marcus and this project under FB’s roof is if Marcus had control.
22. This is the type of stuff they will need to nip in the bud quickly. Our default attitude is that Facebook can’t be trusted. I expect they will.
23. From the Verge article, Libra VP of Product
@kevinweil gives an example of the type of financial service that could emerge. I’m looking forward to the #defi wars on Libra. Their Smart Contract platform may be the most underrated aspect of this entire project.
24. I believe there’ll be multiple billion-dollar companies built on the back of
@Libra_. Billions of people will be onboarded into crypto. This is a new frontier — a wide open opportunity. This’ll be very, very fun to watch play out. You can be sure I’ll be at the front lines.
The analysis-cum-facts about Facebook cryptocurrency Libra appeared on Mick Hagen Twitter Profile.