Big Difference Between Bitcoin and Libra

Big Difference Between Bitcoin and Libra

Brian Kelly explained the differences between Bitcoin and Libra.

Facebook shared with the public on June 18, the long-awaited crypto money project Libra’s whitepaper. Afterwards, Brian Kelly, the founder and CEO of BKCM LLC, the crypto money hedge fund, evaluated Bitcoin and Libra.

According to Cryptoglobe’s previously expressed Bitcoin as a digital gold expressed Kelly, Libra as digital money, he added. According to Kelly, this is the biggest difference between the two assets and therefore cannot be considered as the Libra crypto currency.

Bitcoin and Libra:

From her own crypto perspective, Kelly began by simply explaining how Libra works from the user’s point of view:

  • You can exchange Libra tokens with traditional currencies such as USD.
  • You can pay for goods and services in the future using your Libra tokens.
  • You can revert all or part of your Libra tokens back to traditional currencies at any time.

All this sounds good, but Kelly underlines an unspoken fact. The CEO says that you need to trust the Libra Union to ensure that all these transactions take place properly. In comparison, a real crypto currency like Bitcoin says that there is no trust to third parties. As Satoshi Nakamoto explained in the whitepaper, “Bitcoin is an electronic payment system based on encryption rather than trust, which allows two people willing to trade directly without the need for a third part.”

Bitcoin is now the 8th biggest money in the world!

Some still think Bitcoin is a whim. However, according to recent reports, Bitcoin has become the world’s eighth largest currency. This brings the leading crypto money in front of Russia. In addition, the rise continues…

World’s Largest Coins

According to Bitcoinist, the following graphic shared by Crypto Voices may be a bit surprising. According to this table, gold is the world’s largest monetary system with almost 8 trillion dollars. Bitcoin closely follows the gold.

In addition, the monetary base of a country is measured in terms of the amount of money held in circulation and not in gold reserves but in commercial deposits in central banks. On the other hand, although it is the largest economy in the world, the US owes 25 trillion dollars; Japan, China and the European Region. Why oil-rich countries like Saudi Arabia and the United Arab Emirates are not included in this table.

Bitcoin: 8th Place

When we look at the table, except for gold and silver, Bitcoin is currently the eighth largest monetary system in the world. In the chart, although it ranks ninth after two precious metals, we see that it shares the eighth place with Russia.

How important is this ranking? Currently, Bitcoin’s total market value is around $ 162 billion, and some analysts say the value of Bitcoin will reach $40,000 by the end of 2019. If the price rises as expected, the market value of the leading crypto currency may also increase. Also, considering that Bitcoin has achieved this success in as little as 10 years, it is very important.

John Brock

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