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Why is Facebook’s Libra better than Ripple?

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. 


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

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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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.

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