Bitcoin

Facebook’s Libra Will Primarily Be Used to Buy Bitcoin, Says Fundstrat

Martin Young | Jun 20, 2019 | 03:00

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There has been no shortage of opining over Facebook’s foray into crypto this week. Most industry heavyweights are in agreement that Libra is about as far from bitcoin as the greenback is, but the new digital offering will have an impact on the crypto scene, and it may not be that bad.

So What Do *You* Think About Libra?

Everyone from grandmothers to William Shatner has commented on Libra since Zuckerberg et al released the details earlier this week. Crypto markets did not even blip but there could be wider implications as the world’s largest social media network attempts to take on the planet’s biggest banks.

Facebook has in excess of 2 billion users so it stands to reason that a digital payments system on the platform will increase awareness of crypto currencies for millions that previously considered them deep in the realms of geekdom.

Once people realize that they can send payments instantly and for virtually no cost, bypassing banks and expensive foreign exchange intermediaries, the light may suddenly go on. Bitcoin and other crypto assets can do exactly that, but without the big blue overseer prying on who, why and where the funds are going.

Zuckerberg a ‘Useful Idiot’ for Bitcoin Adoption

RT’s Max Keiser is of similar opinion. Like many, he believes that Bitcoin will ultimately benefit from Facebook’s foray into crypto assets;

It’s built into the protocol’s genesis block that eventually a heavyweight like $fb would take on BTC. This increased awareness and appeal to would-be potentates will, of course, drive the hashrate to new highs, leading to new ATH for BTC price. Zuck is Satoshi’s useful idiot.

It’s built into the protocol’s genesis block that eventually a heavyweight like $fb would take on BTC. This increased awareness and appeal to would-be potentates will, of course, drive the hashrate to new highs, leading to new ATH for BTC price. Zuck is Satoshi’s useful idiot.

— Max Keiser, tweet poet. (@maxkeiser) June 18, 2019

At the moment, BTC hashrate is knocking on the door of an all-time high. Add to that the premise that the gap from price ATH has been reduced to just over 50%, and the fact that bitcoin is up almost 150% since the beginning of the year and you’re on to a winner.

Fundstrat co-founder and bitcoin bull, Tom Lee shares the view that Libra will be a good thing for bitcoin.

Libra pretty much destroys anyone who believes “blockchain not bitcoin”
– @facebook is launching a crypto currency, albeit a stable coin
– even traditional fiat’s primary use to buying financial assets (96:1), hence, #Libra primary use likely to buy $BTC

Libra pretty much destroys anyone who believes “blockchain not bitcoin”

– @facebook is launching a crypto currency, albeit a stable coin

– even traditional fiat’s primary use to buying financial assets (96:1), hence, #Libra primary use likely to buy $BTC https://t.co/VtzI52tgM6

— Thomas Lee (@fundstrat) June 20, 2019

In the short term bitcoin is unfazed. An intraday high of $9,350 was hit a few hours ago and markets are still bullish. Crypto awareness is already several magnitudes higher in 2019 that it was in 2017 and Facebook has just thrown a lot more fuel on the fire.

Is Libra good or bad for crypto? Add your comments below.

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