Why does everyone assume that all crypto is the same? Why do they assume that every digital asset is created equal? This isn’t Animal Farm, people. All forms of crypto bring different aspects to the table, and some, like bitcoin, are clearly more capable than others.
Bitcoin: A Stronger Currency Than Libra
It’s annoying to see so many individuals pair certain cryptocurrencies together, especially when some have no place being in the same categories. For example, bitcoin is presently sliding at press time thanks, in part, to the Fed chair claiming that Facebook’s Libra raises “serious concerns.” Yesterday, bitcoin was trading for about $12,400. Well, this little comment has caused the granddaddy of crypto to lose roughly $800 overnight. It’s now trading for $11,600.
First off, why this is occurring with bitcoin is somewhat of a mystery. The currency, which has developed a rather thick skin as of late, shouldn’t be suffering this much because of one silly, stupid comment. How can it drop this much over just a few words of dialogue, yet it can spike several thousand dollars after Binance loses nearly $40 million… in bitcoin units?! Bitcoin is still being haunted by volatility, but that volatility is harder than ever to understand or explain.
Second, Libra, will all respect, doesn’t even deserve to be placed in the same category as bitcoin. Libra has still yet to enter the official crypto market. Right now, the company (Facebook) is engaged in developing the currency from scratch. It’s set for release in 2020 and it’s already raising huge levels of controversy before it’s even out and available for use. It has no track record and is coming from an enterprise that has been marred with scandal following questionable practices regarding users’ private data.
Bitcoin, on the other hand, has been around for roughly ten years. It’s an established cryptocurrency that’s being utilized by several nations and reached its all-time high of nearly $20,000 in December 2017. By contrast, Libra is slated to be a stable currency tied to USD, meaning that while it will be less vulnerable to price swings, it’s likely to remain the same granted inflation never becomes a harsh reality in America.
Congress Seems Intent on Stopping Crypto
Nevertheless, bitcoin has fallen over the last 24 hours thanks largely to the comments made by Jerome H. Powell, who serves as a chair of the same financial committee headed by Rep. Maxine Waters in Congress. As we all know, Waters has been very critical of Facebook’s Libra in the past, requesting that the company put their plans on hold indefinitely until Congress can understand more.
She’s currently in a head-to-head battle with David Marcus, the leader of Facebook’s blockchain division, and has commented that the U.S. is seriously behind when it comes to implementing crypto regulation. Waters and Powell are clearly a deadly barricade when for crypto innovation.