Everyone knows that Bitcoin and Facebook’s Libra are both cryptocurrencies.
But very few people know why Bitcoin’s been allowed to live while Libra’s being crushed with every attempt.
The short answer is that Bitcoin is and will only ever be an alternative currency novelty and payments system pretender, while Libra could grow to be everything Bitcoin never will be.
That makes Libra a very dangerous threat.
To whom you ask?
To the powers that be, who see Libra as a coup attempt that would not only undermine their unlimited power over America, but their global cabal as well.
The Difference Between Bitcoin and Libra
Sorry Bitcoin believers and speculators, your cryptocurrency never had a chance of being widely accepted and used, which is why it wasn’t regulated out of existence by the powers that be.
The once perceived threat of Bitcoin evaporated on account of its inherent limitations and volatility.
Blockchain, the breakthrough in decentralized ledgering where a growing list of records are linked using cryptography, is the magic behind Bitcoin.
But blockchain was touted as only a part of Bitcoin’s allure.
Bitcoin’s other attributes are supposed to be how finite the cryptocurrency is, which means that the mining process will only ever yield 21 million coins and that it’s not attached to a government or central bank.
Those inherent attributes are also what limits Bitcoin’s utility and why the once perceived threat to sovereign currency regimes was ultimately unmasked as a paper tiger destined to be nothing more than a speculative instrument with a questionable future.
Libra is nothing like Bitcoin.
One Crypto’s Trash Is Libra’s Treasure
First, unlike Bitcoin there’s no limit to the amount of Libra that be coined.
The “Libra Association”, which founding members of Facebook envision overseeing its cryptocurrency, are supposed to pony up $10 million each.
Those collective deposits will yield a certain number of Libra coins; more coins are created as more deposits are collected. But there’s no limit to the number of coins that can be created.
Bitcoin’s “value” (with value being relative, as in relative to how many dollars or other units of something it costs or can be exchanged for) fluctuates constantly.
At its high in December 2017, a bitcoin was worth $19,891.00. A year later a coin was worth $3,295.27.
A currency that fluctuates wildly has no real long-term economic utility.
The deposits that Libra Association founders pony up go into a fund that exchanges their deposits into different major currencies, which then are used to buy short-term government securities from those countries.
That ties the value of Libra to a basket of real-world currencies, which do fluctuate against each other, but are infinitely more stable than a coin whose value is determined by speculators buying and selling it, like Bitcoin.
Founders aren’t getting nothing for putting up their deposits. They get the interest on the fund that holds all the government debt securities.
If Libra was to become a global currency the amount of money in the fund would yield a staggering amount of interest, kind of like what the Federal Reserve makes on the trillions of dollars of U.S. government securities it buys and holds on its balance sheet.
And that’s the problem.
Libra becoming a means of exchange, a global currency, a store of value, a payment platform, would be a coup.
It would end the rein of the Federal Reserve and the cartel of central bankers who control the world’s money supply and credit.
That’s why Libra is being killed in its crib.
Facebook’s mistake was not coming up with Libra years ago and launching it on a very limited basis where the cryptocurrency could only be used for buying and selling authorized products or services on and through any of Facebook’s platforms including Instagram and WhatsApp and Messenger.
Once it was accepted and used by enough of Facebook’s 2.7 billion subscribers it would be virtually impossible to not let it be used outside Facebook.
But they didn’t do that.
Now, the rollout looks like storm troopers massing against the armies of central banks, who have the high ground and the ability to stab Libra to death, or Facebook if they have to, and are doing.
Now you know who’s killing Libra and why Facebook’s under such pressure.
It threatened the power structure that runs America and their cronies who run the rest of the world.