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?
They won’t bother attacking Bitcoin. All they need to do is allow Libra to be used on all their services. Bitcoin is still fringe but from the beginning libra could work anywhere you can use a credit card. Add in discounts for using it and you’re golden.
Crypto enthusiasts will never use Libra but people in it for a profit will likely jump ship once normal people start adopting Libra.
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Hopefully the Libra chain (is it really a chain?) supports HTLC. If so, then at least people will be able to atomic swap OUT of Libra when the SHTF.
So, some crypto enthusiasts might get in early, ride its first pump, then start selling on the way up. That initial pump will probably not last more than a couple weeks too imo.
Risk well evaluated @kencode. It's risk management and people often forgot it. DPoS is an alternative to PoW and I've always supported this consensus. In someway many organization and small companies will find DPoS solutions suit to them, especially cooperatives because they already have laws protecting their businesses and they understand proprietorship. If DPoS only keep 20% of the consensus market meaning PoW, PoS, DPoS, BFT, aka Proof of anything etc...That's a lot of potential market will can serve. I believe in building solutions that will support niche market well. Bitshares, Steem, EOS, and soon BEOS can easily support Libra.
yep, exactly. just diversify a bit. our support of atomic swaps takes us even further into our goal of true decentralization too. the less middlemen, the better :)
Bitcoin is unstoppable libra is purely centralized
Yep, clearly Libra is horribly centralized.
They won’t bother attacking Bitcoin. All they need to do is allow Libra to be used on all their services. Bitcoin is still fringe but from the beginning libra could work anywhere you can use a credit card. Add in discounts for using it and you’re golden.
Crypto enthusiasts will never use Libra but people in it for a profit will likely jump ship once normal people start adopting Libra.
Posted using Partiko iOS