Facebook’s Libra venture has created a lot of excitement in the cryptocurrency world.
It is becoming everybody’s hope that Libra will be everything that Bitcoin hasn’t become.
Excitement is all too common with every new venture, especially from tech giants like Facebook. But it will be better to compare Libra and Bitcoin from each other to put everything into perspective, and to see if this excitement has a basis, to begin with.
We will compare these two digital currencies using the aspects of use-case, adoption, and volatility to clearly set their differences.
Bitcoin, with its failed attempt to become a platform for transactions, has now become more of an investment and store-of-value. Libra’s purpose, right from the very start, is to become the medium-of-exchange for various transactions (and is likely to succeed).
Wherever Bitcoins become expensive, Libra tries its best to be “in” expensive. With its low transaction fees, a consumer will certainly choose it for various transactions.
Libra’s ticket for mass adoption is through its heavyweight backers.
Mastercard, Visa, Uber, and Booking Holdings, among others, are some of the giant companies that will adopt Facebook’s digital currency and will push it into mass-adoption.
With its decentralized nature, Bitcoin is really prone to price swings.
In a complete turnaround, Libra is backed-up by currencies and debt securities, things that would further make it a stable digital currency than the Bitcoin
With its current phase, everybody believes that Libra is aiming to be a stable and low-inflation currency, preparing itself for an imminent mass-adoption.
With these comparisons, it is clear that Bitcoin has its strengths, but it is Libra who is set for ‘world domination’. It is only a matter of time before the landscape of payment totally changes.
Nobody had ever expected that a dorm-room project will soon lead the world in its next phase of development.
Also read: 5 Factors That Affect Cryptocurrency Price