The world's largest social network becomes a crypto bank. Are Facebook and Libra heralding the comeback of Bitcoin and Co.? The opportunity is there, and Bitcoin is also on the rise again. But is that enough to establish cryptocurrencies as mainstream?
With the announcement of its own cryptocurrency Libra and the matching wallet Calibra, Facebook has been able to surprise many experts. The venture into the field of cryptocurrencies is not meant to be a one-off excursion, but a cornerstone of Mark Zuckerberg's strategy. A few months ago, Bitcoin, Etherium and Co. were already considered to have disappeared into oblivion, after the height of their hype was followed by a painful crash.
But if you look at the price trend of Bitcoin as the "leading currency" of the crypto market, you'll be surprised to see that there's a lot going on! After the fall to well below $4,000 around the turn of the year, one of these digital coins, which thanks to blockchain technology can be traded securely, anonymously and without any state supervision, is currently worth more than $9,000. So if you started at the right time, you may have already made a good profit. The situation is similar for many other cryptocurrencies, and some have by no means experienced such a sharp drop in price as Bitcoin. It'll make recovery easier.
Facebook has good timing
So the step from Facebook into this area comes at a good time. Above all, the strategy of introducing currency deposits on the basis of stable currencies is clever in order to prevent rapid price fluctuations for Libra. Such cryptocurrencies attract gamblers and cheaters with the prospect of quick profits and are poison for the confidence of the broad masses in this type of currency. If Zuckerberg and his experts can get the right levers moving here, Libra can certainly be a success.
Nothing significant has changed in the actual difficulties of the cryptocurrencies. There are still hardly any ways of using digital money to pay for goods or services that are as easy as using standard payment methods. In addition, there are still countless semi-murky figures and dubious suppliers of Bitcoin and Co. whose business practices and strategies generate anything but trust in people.
For a long time, I was extremely skeptical about cryptocurrencies and I still am. State control may be questionable in many respects, but it is precisely in the area of economic and monetary affairs that it ensures stability, without which it cannot be achieved globally in my view. Nevertheless, I believe that cryptocurrencies are well suited for some areas and that in the medium term they will also become established in small niches. Maybe I should have a look around for such a wallet ...
How do you feel about cryptocurrencies?