Serious Question - Facebook Libra vs Bitcoin and POW
There were initially 27 corporations with hundreds of Billions of Dollars supporting the development of "Facebook Libra". Some say that even more companies are jumping on board now too.
Libra used to be called "GlobalCoin" but then they changed it.
Gee, I wonder why...
Those 27+ corporations want their coin to be used and they have billions of dollars to market it. When they decide to kill Bitcoin and all Proof Of Work (POW) blockchains, they can, and just might. Please hear me out for a minute...
Note: We use Bitcoin. We HODL Bitcoin for our kids' future. We rely on Bitcoin. We pay our entire Developer staff with Bitcoin, and have done so since 2013.
So, that being said, if you had virtually unlimited funds, and you really wanted to dominate the market and/or destroy your competition (Libra vs Bitcoin), how would you do it?
A)) Buy up every Bitcoin you can from every OTC Trader and Exchange in the world? or..
B)) Destroy your competition without spending even a fraction of that amount?
Assuming they have access to huge funds and will go with option B, here is how I see it playing out...
- Hack and regulate the other CEX's out of existence, Coinbase wins (which is already infested with gov people and statists).
- Create a bear market. Shorting, mining pool owners getting bought off, mainstream media, CEX collusion, IEO coins, climate change agenda (miners), laws and other regulations, false flag, etc. Many of these things can happen at the same time too.
- Hash Rate falls, and follows the price down.
- Price to 51% attack falls (watch www.crypto51.app).
- Risk of 51% attack increases (especially after the May halving/halvening).
In just a matter of hours, those Billion dollar companies can just pool their resources and then do a 51% attack on all of the coins that they see as a threat to Libra, and make the remaining ones illegal. They can easily afford $1M/hour (and get all of the additional free money they need from the IMF to make it happen). Watch the crypto51 link above.
I/we are seriously concerned about this. Let this post serve as a conversation starter below so that we can figure out how to prevent the 5 risks above. This post is meant as opinion only, and for discussion..
Note: We use Bitcoin. We HODL Bitcoin for our kids' future. We rely on Bitcoin. We pay our entire Developer staff with Bitcoin, and have done so since 2013.
Diversification; it certainly wouldn't hurt. Not just in POW coins like BTC and LTC, but also DPOS coins (Bitshares (BTS) and Steem for example).
Diversify a bit into DPOS?
While they will definitely try to win with their own coin, I think it's logical that they'll hedge their bets and try to control Bitcoin too. They already control it, and an illusion of choice is better for them IMO.
Good point. An "illusion of choice" makes a lot of sense too.
Yellow Pages didn't win against the internet, AOL lost to Google... It's likely some countries will be more against Libra than many other blockchains. They (France and others) reacted immediately seen it as a threat.
Bitcoin is a power hungry beast, and it's also already controlled by big institutions to some extent.
There are plenty other projects, though - Stellar, NEO, steem, bitshares, etc. and last but not least - Gridcoin ;)
You make a really good point Strategically, it makes sense that Facebook and tries to take over BitCoin. Facebook has tried to take over messaging (Remember when AOL instant Messenger ruled the day.) (Facebook owns Whats app and had incorporated its own messenger. People in China use digital allipay, it can happen here. Could be serious threat to credit card companies and cash cow. With So many projects fumbling the ball, it makes sense others try to run with it.
I guess my point is lots of companies gooble up every available competitor when they think it makes sense. (Microsoft came out with windows, office, explorer, email ect). Same with apple, and google. It is business.