Facebook’s crypto asset is on the verge of becoming full public knowledge. The coming week is expected to see the release of white paper regarding its first real foray into the blockchain ecosystem. With this approaching date, many industry commentators have come up to express their thoughts on the subject matter.
Recently, Peter Schiff, who is a prominent gold investor and libertarian-leaning economist ventured that Facebook’s “Globalcoin” and/or “Libra” may be a “bad news” for Bitcoin. Also, Schiff had previously debated Erik Voorhees and Barry Silbert that Facebook will be targeting the unbanked in “nations with high inflation (Venezuela, for instance)”. Hence, threatening the biggest medium of potential BTC adoption.
Schiff is Wrong!! Where?
There are chances that Schiff may be wrong in postulating that globalcoin is preferable in all scenarios over Bitcoin. However, some of them argue that this new cryptocurrency is not a direct competitor to BTC. This upcoming crypto asset is backed by centralized corporations, like Visa, Mastercard, and Facebook itself, who are paying $10 million to run a node.
On the other hand, Bitcoin can also be entirely private only if implemented correctly and in proper manner. Arthur Hayes of BitMEX once explained,
“Sooner than you think, cash will not be an option for privacy, or for anything else. And private citizens will come to appreciate the inherent value of Bitcoin, as their ability to discreetly hold and transfer value evaporates once cash goes the way of the dodo.”
Basically, many of them see Bitcoin as a store of value that is equal to, if not better than gold. Hence Bitcoin may see adoption as a store of value, but not as a medium of exchange.