Why does the United States and the European Union recognize bitcoin but stop Libra?

Why does the United States and the European Union recognize bitcoin but stop Libra?

In digital currency, you may be familiar with Bitcoin. In mid-June, Libra, the “new upstart” of digital currency, was born. Libra is not only backed by global social networking giant Facebook, but also supported by 26 multinational companies including Uber and Ebay. Big giant Visa and Mastercard. According to Facebook's founder Zuckerberg's plan, Libra is expected to be officially put into use by 2020 to solve the payment problem of 1.7 billion people.

Why does the United States and the European Union recognize bitcoin but stop Libra?

However, Facebook seems to be "not dead" this time. On July 2, US House of Representatives sent a letter to the Facebook and Calibra project leaders requesting to stop the Libra project immediately; on July 3, 30 influential groups in Washington wrote to us. The US Congress has requested that the Libra project be stopped. At the same time, a media interview with an official of the United Nations who did not want to be named said that the EU has a strong negative attitude towards the Libra project, and many EU countries have planned to take drastic measures against Libra. France indicated that it will set up a special management committee to take measures, and Japan indicated that it will not consider it as a legal currency.

Why does the United States and the European Union recognize bitcoin but stop Libra?

The same is the digital currency. It is also the offshore technology of the block. Why does the United States, Japan and Europe happily recognize Bitcoin, but Libra “hardening the knife” that is not yet on the line? In essence, it is to maintain the hegemony of developed countries.

1. Bitcoin control is in the United States, and Libra belongs to the people of the world (laugh)

First, Bitcoin is not a currency, and Libra is a "currency currency." As I mentioned before, 80% of Bitcoin holders are in the US, and Goldman Sachs and FBI hold 15% of Bitcoin. And the way Bitcoin gets is mining, which means that bitcoin is a good resource for money, and the bitter bitcoin is "empty gloves and white wolves." Therefore, although Bitcoin is called "coin", it is essentially a commodity. Bitcoin has risen and expanded significantly, benefiting the creators and early holders of Bitcoin. But Libra is different. The Libra that is currently announced is to convert the US dollar or other currency to Facebook and convert it to Libra, and then use Libra to trade. Coupled with Facebook's own 2.7 billion user base and zero threshold, this means Libra is "money currency" at design time.

Second, bitcoin transaction costs are extremely high, and Libra is currently free. Blockchain encryption algorithms are very power hungry, because Bitcoin is now a small audience, so transaction costs are high, and these will be borne by new holders. However, Libra relies on 2.7 billion users. Under the huge base, the transaction cost can be very thin, and even the transaction cost can't match the income brought by the fund pool. Naturally, the transaction fee can be avoided.

In general, Bitcoin is now the weight of a few people, especially some interest groups in the United States, and Facebook-led Libra is a trading system that "strives for the well-being of the people of the world." The word Libra also stands for fairness and balance, and it is much better than bitcoin's vulgar word.

2. Libra will first mess up bitcoin, followed by dollars, euros and yen

So this year, Bitcoin has skyrocketed to $12,000, but it has turned the fall mode after the Libra announcement. Earth people must know that if you really engage in a global digital currency, then one must be enough. There is no need to do two. So after Libra came out, the first "dead" was bitcoin, so the bitcoin coins must come out against it!

So in the second stage, as Libra forms a docking relationship with the currencies of major countries in the world (except for China, you understand), and can be used for direct payments, then as the ordinary people there is no need to directly hold these currencies. This is not the case with the fact that it is not necessary to bring cash after the popularization of the balance. At the same time, Facebook's main users are developed countries such as the United States, the European Union, and Japan, so Libra can step on the traditional super-currency of the US dollar, the euro, and the Japanese yen, and then merge to create a … amount… "explosive currency" ( Sorry, the word is poor). Then the Federal Reserve, the European Central Bank, and the Bank of Japan have to give Libra a slap in the face, and Libra will issue new coins. All three must be collected.

In time, it entered the third stage. As these users become more accustomed to using Libra to pay, the currencies of the US dollar, the euro and the Japanese yen will gradually withdraw from the historical arena. The government that has lost its currency rights can let Zuckerberg lead in the future…

3. Libra will definitely be more successful than Bitcoin, and if it doesn't block, it will definitely succeed soon.

First, Facebook has a 2.7 billion user base. And there are 2.7 billion users of basic information, lifestyle, social networks, and even geographic information and other private information. There is no basis for Bitcoin.

Second, Facebook has 26 global giants as partners, including financial institutions and merchants that can directly consume. This means that once Libra is launched, it will be immediately recognized by the merchants to realize its value.

Third, Facebook has a large network and technical team. Easily surpassing Bitcoin is not a problem.

I have to admit that Zuckerberg still has a world-wide vision and a mind. He also considered Libra's interface problem for the world's 1.7 billion people who don't have a bank account. This is a hundred times stronger than Bitcoin. . If Zuckerberg succeeds, a super currency that will replace the US dollar, the euro, the Japanese yen and the bitcoin will be born in the future. When will the US, EU and Japanese governments face themselves in front of these technology giants? My little bench is ready! (The internet)