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Why is Facebook’s Libra better than Ripple?

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Facebook Libra vs XRP

OK, first things first. 

We are not big fans of both Ripple and Facebook’s Libra. So this entire article might be completely biased and just a ranting opinion. Also, we will be using Ripple and XRP interchangeably, don’t get too technical on us. If some of the questions posed below sound like accusations, they are not, they are opinions. You have been warned.

We don’t like Ripple because it ‘mints’ millions of dollars in money out of thin air and NOT earn it by providing service (not yet and not enough to justify millions of minting each month)…and because they have almost unlimited supply of money they get a lot of coverage on primetime, in our opinion. This coverage in turn brings more ‘users’.  

We think that the curtain is lifting as more than 63% of hardcore Ripple fans left the ‘fan club’.  

Now, Ripple is still popular. I mean, if you have a billion dollars (or more during the peak) every quarter for doing nothing, wouldn’t you be on the top of the charts?

As you can see, we start ranting every time we talk about Ripple

Some might call this baseless, might be.  

We just don’t like deeply centralized projects that call themselves cryptocurrency. If they had called themselves Ripple Digital or something else and did not trade as a crypto – we would have cared less.  

Again, we digress.

Coming back to the topic at hand, here is why we think Libra is better than Ripple, again mind you – we do not like them both.

Pegged to fiat in case sh*t hits the fan

Many consider fiat to be a dying breed. I think even Feds agree, that’s why they are shifting to a Digital Dollar. Libra is pegged to world fiat, that means, every Libra token is backed by some value, so theoretically, Libra will have a stable coin value.

Ripple just prints money each month. Just like that. No rules – no reasons – no nothing. They minted 100 Billion (yes, Billion with a B) initially and now have about 55 Billion locked in Escrow that automatically releases 1 Billion tokens each month. That is close to $200 Million in value created for ‘doing nothing’. Any company in the real world would have to hire 10s of thousands of people and create real value for the world to generate that kind of income.

Even the company that we don’t like, Facebook, actually provides a service to the public. 

Volatility 

Facebook’s Libra will be a stable coin, that means, there is some kind of guarantee that the value will hold when transacting.  

Ripple on the other hand is volatile. In fact, it lost 95% of its value from the peak. A volatile cryptocurrency is not best suited for international transfers/money transfer services, etc.,  

Introduction of digital dollar

Once the US government issues the US Digital Dollar – people would rather trust government issued dollars that are digital over any company minted currency that is volatile.

Libra intends to peg with digital dollars, as such, the introduction of digital dollar may not impact Libra.  There is a rumor that Facebook’s Libra will be the Trojan horse that takes the US dollar onto global retail platforms (so far it was handled majorly by institutions and governments as global reserve).

Libra project needs Libra coin, Ripple Tech doesn’t need XRP

facebook libraYou do not need an XRP coin to use Ripple Technology. The only reason XRP was believed to have liquidity is because it is easier to transfer XRP for XRP and then convert that in local fiat for almost zero cost.  This works only when XRP is somewhat stable. If it is volatile, the company (as in Ripple) might have to cover the ‘difference’.  Since they mint millions (and billions) out of thin air – they may even pay to stay in business, after all it’s all free money?

Facebook’s Libra project actually needs Libra coin to work. It will be the basis of transfer of value over their messaging app.  You could theoretically send money through text message and your fiat will transfer into the recipient’s account in their local fiat currency in real time.  When this happens – will we need money transfer companies? If we will not need money transfer companies – what will be the value proposition of XRP which is targeting money transfer/cross border payments primarily?  

Thinking that money transfer companies will always be around is like betting on calling card businesses when WhatsApp is in the market. 

Ripple’s Tech is far from blockchain spirit 

Ripple uses a novel consensus algorithm that “gives Ripple a large measure of control over XRP’s inner workings, which has led many to argue that it’s not truly decentralized. In that sense at least, XRP is a “really bad” cryptocurrency.” That quoted sentence is lifted from MIT Review.  

Facebook’s Libra actually uses a blockchain system that is somewhat consensus basis (at least from the participating members, it is still centralized in a way, but there are plans to open Libra as a public blockchain). They even introduced their own language to work with the blockchain system.

Transparency: Show me your books, please!

Facebook is a public company. They have to disclose their financials each year.  In fact, here are their last financial statements from 2019.  

Now, what happens with the $200 Million dollars (at current market prices) that Ripple releases into the market each month?  Can you show me the records of the spending?  How much did the executives make since inception?  What is the ratio of spending on the project development vs. executive compensation?

Jed McCaleb alone has sold over $175 Million worth of Ripple so far and still has a big chunk in his possession.  What about the other people involved with Ripple, how much of Ripple did they liquidate? How much money was raised so far by liquidating Ripple and how were the funds used?  

The quarterly ‘transparency report’ just shows the ‘total sales’ but doesn’t give any insight into how the funds are ‘used’. Talk about Great transparency.

How much of the sale volume is bots driven?  Are any of these bots controlled by the Ripple team? 

If you remind us that Ripple (or Ripple Labs) is a private company and it doesn’t have to disclose that information, we would say, yes, exactly, and we rest our case on the transparency aspect, which was supposed to be the cornerstone of the whole blockchain movement?  Probably, we got our concepts mixed up.

We will stop here. 

We don’t want to actually start liking Facebook’s Libra just because of the flaws we see in Ripple.  Both are extremely centralized and don’t belong in the cryptosphere, in our opinion.

And, we don’t even know if Facebook’s creator is a human or not!

Curb your Zuckerberg

Sure you are Mark (originally from https://twitter.com/hsuggests/status/920465722962214913)

Note for Ripple fans: Before you tell us how little research went into this article, let us save you some time and energy.  We know, and yes, these are our baseless opinions. If you can articulate the use case of XRP in a world with NO money transfer companies, we want to hear them. We may even change our opinion, just teasing you.

Thank you for reading and sharing this article. Stay safe and healthy!

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IMPORTANT DISCLAIMER

Everything in this article is an opinion, not an advice of any kind. This material has been prepared for general informational purposes only and it is not intended to be relied upon as accounting, tax, investment, legal or other professional advice. Please consult with a professional for specific advice.

We do not endorse or guarantee the accuracy of the information and claims made.

All product and company names are trademarks™ or registered® trademarks of their respective holders. Use of them does not imply any affiliation with or endorsement by them.

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Crypto Roundup: All Your YouTube Influencers in One Place

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Crypto Roundup

Visit our Crypto Roundup section daily for a dose of all your favorite Crypto YouTube influencers in one place.    

Worried about missing updates from your favorite YouTube crypto influencers?  

Welcome to the Crypto Roundup.  

On this page, we will post a quick summary of the videos from some of the most popular YouTube crypto influencers.

Ivan on Tech  Altcoin Daily

Crypto Zombie Box Mining

Ellio Trades Lark Davis

Data Dash Bitboy Crypto

MMCrypto Chico Crypto

Altcoin Daily

Video title: Bitcoin Will Be OVER $20,000 By Christmas 2020! BIGGEST WEALTH SHIFT OF OUR LIFETIME! Cryptocurrency

Date: 19-Nov-20

  • World’s biggest wealth shift of our lifetime is happening right now and no mainstream media is talking about it, except CNBC.

  • Preston Pysh predicted on August 26th that: “Bitcoin should be reaching its all time high by Christmas.”

  • If you are looking to buy a dip, there may not be one.
  • Ricardo Salinas Pliego, a mexican billionaire, has just revealed that 10% of his liquid assets are into bitcoin.

Lark Davis

Video Title: STOCKS HIT NEW HIGHS! WILL COVID VACCINES LEAD TO MEGA PUMP IN 2021? [Are You Ready?]

Date: 19-Nov-2020

  • Stock markets and bitcoin pumps higher on the news of the second successful covid vaccine.
  • There could be more chances for the new stimulus. Means more inflation, more debt and simultaneously pumps stocks, gold and bitcoin.

Crypto Zombie

Video Title: BITCOIN $18.5k TOP!!?! DON’T BE FOOLED!! HODL FOMO BEGINS!!! $TRILLIONS FLOOD!!

Date: 18-Nov-2020

  • Overall sentiment of Bitcoin has changed drastically from ICO craze in 2017 to a time where people are FOMOing to own more bitcoin.

Ivan on tech 

Video Title: BIG WARNING TO ALL HODLERS!!!!!!!!! DO NOT GET REKT!!! BITCOIN $18,500 REJECTED – NOW WHAT?

Date: 18-Nov-2020

  • Ivan expects bitcoin to shoot past $20K resistance before end of this year, giving it 85% probability

Chico Crypto

Video Title: World’s Most Powerful Turn BULLISH on BITCOIN

Date: 19-Nov-2020

  • All those who hold big bags of Bitcoin will come out of the shadows to talk up the Bitcoin rally, a $20K bitcoin could be on the cards before the end of this year
  • Ethereum mining could act as a big catalyst for Ethereum’s price
  • Big companies like google could play a bigger role in mass adoption of crypto

Let the FOMO begin…

Thank you for reading and sharing this article. We appreciate you.

Stay safe and healthy!

Top 5 Cryptocurrencies 2020

IMPORTANT DISCLAIMER

Everything in this article is an opinion, not an advice of any kind. This material has been prepared for general informational purposes only and it is not intended to be relied upon as accounting, tax, investment, legal or other professional advice. Please consult with a professional for specific advice.

We do not endorse or guarantee the accuracy of the information and claims made.

All product and company names are trademarks™ or registered® trademarks of their respective holders. Use of them does not imply any affiliation with or endorsement by them.

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Lessons from the Veteran HODLERS to the Newbies!

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Lessons in Crypto

For all those who entered the crypto market after the 2017 bull run – here are few lessons from the HODLERS from the last bull run(s).

This is our attempt at making all you newbies aware of the mistakes veteran cryptoers did.

Let’s get started…

Don’t FOMO in to all the hype

FomoIt’s hard not to FOMO in crypto.  The trick is to make sure you don’t lose your shirt in crazy bets.  Always limit your bets to what you are comfortable losing.

The common ways you can become victim of FOMO are:

  • Following your favorite YouTuber without actually doing your own research on the project.
  • Investing into projects at the top.
  • Believing in promises of 100x or 1000x without any substance behind those claims.

HODLing far too long

Remember why you are into crypto – to make the money.

Never fall in love with your crypto, and HODL the tokens even when they are 10x and more.

Have a strategy to take your capital out before you become a HODLer.  

If you believe the project really has what it takes to go beyond 100x and more, just sell in instalments so as to not miss the ride.

One of the best ways to HODL is to take your capital in full and profit in tranches.

This rekt story will give you a right perspective of what it looks like, it’s one of many:

Don’t put all your eggs in one basket

Never go all in on one project. No matter how strong the project may look, even the projects with strong fundamentals don’t do well sometimes. 

And, you will be kicking yourself watching other projects go up and your portfolio just doesn’t seem to make a move.

And don’t over do it and have a portfolio with over 100 projects either. It is very difficult not to have invested in more than 15 projects but anything less than 20 is a good way to go, in our opinion. 

Put aside the share of Profits for Taxes.

One way you can get a good night’s sleep is by paying taxes. 

Always keep a habit of putting aside a % of your profits in USDT or other stable coins, as a reserve to take advantage of market volatility and also to meet your tax obligations. 

Exchanges are more evil during bull run

Foreign ExchangesDon’t trust exchanges. Yes we already know that, but they play more games during bullrun, some intentional and some technical. 

Many exchanges tend to go under maintenance when the prices shoot up too high too soon (Coinbase?), and you can’t sell. 

And the shady exchanges scam out before you know.

Regulators seem interested when the market cap of these projects goes through the roof, which then adds FUD around the project crashing the prices.  

Exchange may freeze funds pending investigations when such issues arise.

Take for example OKEx. Users are unable to withdraw their assets from the exchange for almost a month now, not certain if they ever will, and all that started with the legal dispute.

Never fall for Arbitrage gains

Arbitrage is when you buy in one exchange at a lower rate and sell on the other for a higher rate to take some profits. 

Some shady exchanges show a lot higher prices than the other genuine exchanges and when you deposit your assets to sell at those prices there won’t be actual volume to execute the trade. You may be stuck with either a high fee for withdrawal or other funky rules to take your own money out. 

Remember, there is no free Giveaway

Free CryptoScammers rise with the rising market.  

When the crypto market buzzes with all time highs – scammers cash in big time on newbies.

The most lucrative scam in crypto is ‘Free Giveaway’. Whether it be through YouYube ads or discussion groups and wherever they can get your attention.  Read this article on various sophisticated scams that are being deployed.

We hope these lessons help you through your trades and crypto life.  Stay safe and always DYOR.

Thank you for reading and sharing this article. We appreciate you.

Stay safe and healthy!

Top 5 Cryptocurrencies 2020

IMPORTANT DISCLAIMER

Everything in this article is an opinion, not an advice of any kind. This material has been prepared for general informational purposes only and it is not intended to be relied upon as accounting, tax, investment, legal or other professional advice. Please consult with a professional for specific advice.

We do not endorse or guarantee the accuracy of the information and claims made.

All product and company names are trademarks™ or registered® trademarks of their respective holders. Use of them does not imply any affiliation with or endorsement by them.

 

Continue Reading

CryptoSpace

Crypto Roundup: All Your YouTube Influencers in One Place

Published

on

crypto news

Visit our Crypto Roundup section daily for a dose of all your favorite Crypto YouTube influencers in one place.    

Worried about missing updates from your favorite YouTube crypto influencers?  

Welcome to the Crypto Roundup.  

On this page, we will post a quick summary of the videos from some of the most popular YouTube crypto influencers.

Ivan on Tech  Altcoin Daily

Crypto Zombie Box Mining

Ellio Trades Lark Davis

Data Dash Bitboy Crypto

MMCrypto Chico Crypto

Altcoin Daily

Video title: The United States Just Brought Bitcoin into the National Conversation!! | Cryptocurrency in 2021

Date: 16-Nov-20

  • Former National Treasurer and the new US Senator Elected, Cynthia Lummis, said Bitcoin fits the bill as a good store of value as it is finite and limited, unlike the inflationary fiat currency.

  • Grayscale adds over 7000 more bitcoin in just the last 24 hours.
  • Just over 16% ETH staked for ETH 2.0 launch on Dec 2 2020.
  • Bitcoin Cash hard fork takes place tomorrow.

Crypto Zombie

Video Title: WARNING!!! BITCOIN 2017 BEAR FRACTAL RETURNS!!! BTC WORST CASE SCENARIO…

Date: 14-Nov-2020

  • Institutional money starts flowing into bitcoin.

  • Paypal goes live with its crypto trading platform for eligible customers. They have also raised the buying limits from the initially set $10,000 to $20,000 per week.
  • DIA, an DeFI Oracle provider, integrates with Polkadot.

Ivan on tech 

Video Title: BITCOIN WILL DO SOMETHING INSANE THIS WEEK!!!! -30% DUMP AHEAD vs $20,000 PARTY – Programmer

Date: 16-Nov-2020

  • Bitcoin could make a big move this week, either hit 20K or we may see a 20% to 30% drop
  • Chainlink partners with Etherisc to deliver agricultural insurance in Kenya.

Ellio Trades

Video Title: UNLOCKING $100 TRILLION? This low cap gem seeks to bridge CeFi and DeFi

Date: 15-Nov-2020

  • DeFI could be similar to the ICO craze in 2017
  • Low cap gem: AllianceBlock
  • AllianceBlock is bridging the gap between DeFi and CeFi
  • AllianceBlock Partnership with Orion Protocol and Chainlink.

Chico Crypto

Video Title: WARNING! An “EVIL” Entity Wants Control of BITCOIN…

Date: 15-Nov-2020

https://www.youtube.com/watch?v=45Ac-5y2ofg

  • 90% of Bitcoin’s mining pools are controlled by China based mining pools
  • As the value of bitcoin goes up – there is a threat of push to ‘control’ the network from China
  • Binance is looking to push through the 50% mining share and Chico believes this could be dangerous

Visit our Crypto Roundup section daily for a dose of all your favorite Crypto YouTube influencers in one place. 

Thank you for reading and sharing this article. We appreciate you.

Stay safe and healthy!

Top 5 Cryptocurrencies 2020

IMPORTANT DISCLAIMER

Everything in this article is an opinion, not an advice of any kind. This material has been prepared for general informational purposes only and it is not intended to be relied upon as accounting, tax, investment, legal or other professional advice. Please consult with a professional for specific advice.

We do not endorse or guarantee the accuracy of the information and claims made.

All product and company names are trademarks™ or registered® trademarks of their respective holders. Use of them does not imply any affiliation with or endorsement by them.

Continue Reading

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