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Should we trust Facebook’s Libra?

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facebook libra launch date

What to expect? 

  • A rant like opinion on Facebook Libra’s change of philosophy 
  • 8 Tweets from David Marcus and our corresponding questions
  • 8 counter-statements
  • A look at why Facebook’s Libra can be a good thing

After operating in the stealth mode for 9 months, Facebook’s Libra project has updates for the public.  

David Marcus, Head of Libra, has posted a series of tweets providing updates on Facebook’s Libra project.  

There are 8 tweets in this Tweet update chain and we will refute each one of them separately.  Here we go:

TWEET 1 of 8:  Claiming that people and small businesses will benefit  

David Marcus on Twitter

Excited with the progress of @Libra_ in the last 9 months. I keep on thinking about all the people and small businesses that could benefit from the Libra Network already being operational – especially now during these times of unprecedented hardship. 1/8

Yes, we agree that Facebook’s Libra could open a brand new way of conducting commerce over the messenger and through its great outreach might bring banking facilities to those otherwise denied.

Small businesses are the biggest victims of data breaches. Breaches make it difficult for people to use their debit cards or credit cards at a small business (although they are not the perpetrators).  Facebook is at the forefront of these data breaches, even getting away with $5 Billion fines. If such a data breach happens on Facebook’s Libra network – and impacts people and small businesses who may be relying on the Libra’s payment network – who will take the responsibility of such loss of trust and revenue?  

If the past is any indication, Facebook has an unhealthy history of affairs with data breach and privacy eroding practices.

Question: Will Facebook’s Libra take full responsibility for declined sales if such decline happens after a breach on Facebook or Libra’s platform?

Tweet 2 of 8: What do these members stand to gain?

David Marcus on Twitter

The Libra Association is now funded by its members (with less than 10% of the funding coming from Facebook), and has adapted its plans after engaging with key stakeholders globally. 2/8

It is a safe bet that the members who paid $10 Million dollars to be part of the Libra’s network are not doing it for charity or out of the goodness of their hearts.  How are these members benefiting from participating in the network? Are they going to get access to the user information on the network for running the nodes as members?

Question:  Doesn’t PAID membership to run the node make this more centralized than a decentralized project, as such, isn’t it detrimental to the crypto spirit?

Tweet 3 of 8: Individual currency based stable coins

David Marcus on Twitter

Most notable evolutions are: a) the creation of single currency stablecoins, e.g. ≋USD, ≋EUR, ≋GBP, in addition to Libra Coin (≋LBR), which will now be a Move smart contract “stitching” together fixed nominal weights of underlying stablecoins. 3/8

If there is not a single currency on Facebook Libra’s project and if we have to deal with multiple currencies, how is the fluctuation in individual exchange variances be dealt with?  If it is going to be the same as usual, why should anyone use Libra instead of the US Digital Dollar?  Technically, can a company like Twitter or Skype or MS Teams introduce US Digital Dollar to be sent via messenger and dilute Libra’s use case?

Question: Why not have one global Facebook Libra currency like Bitcoin?  Isn’t that the basic premise behind having a crypto that is global?

Tweet 4 of 8: Comprehensive KYC with a known breacher?

David Marcus on Twitter

b) a comprehensive network-level system around anti-money laundering (AML), Combatting the Financing of Terrorism (CFT), and sanctions enforcement. 4/8

We are assuming this means there will be an extensive KYC process. Who conducts this process? Do you want people to trust a company that has a history of breaches with user privacy?  Would we want people to reveal even more sensitive data like social security numbers, passport details, etc., with a company, in our opinion, that trades privacy for profits?

Question:  Can people trust Facebook’s Libra with sensitive personal information? Even if KYC is handled by a third-party, using Libra will give Facebook massive amounts of personal spending habit data – what happens to this data?  How will it be used? Will it be monetized? If so, will users get any share of this monetized data? Will users permission be explicitly procured for the use of such data or will it be buried in a gigantic fine print?

Tweet 5 of 8: Deviating from original plan even before launching!

David Marcus on Twitter

c) replacing the originally planned transition to a permissionless form of governance to a market-driven open and competitive network. 5/8

When I read market-driven – I am reading: whatever profits us.  

I read competitive to mean – highest bids get hands on whatever we get from our naive users.

When I read open – I read advertisers/bidders get a backdoor view of all data.

Question: Is Facebook going to put a written statement listing out how they will hold themselves responsible if a future data or privacy breach happens on any of their platforms?

Tweet 6 of 8: What about privacy and data protections?

David Marcus on Twitter

d) building stronger protections into the design of the Libra Reserve to protect consumers, even in the most adverse situations. 6/8

Protect consumers from who? Facebook?  Will the user information on Libra platform be shared across other platforms owned by Facebook?  If so, what happens when the data that migrates from Libra to other platforms – what type of protection will users be guaranteed against any data breaches on other platforms.  Will the permission to ‘transact’ the data across multiple platforms be explicit or something that is hidden in 30,000 line fine print?

Question: Is there an insurance component for Libra users in the event of a data breach?

Tweet 7 of 8: Will participating organizations only get monetary benefit or more?

David Marcus on Twitter

The other thing that changed considerably since we first announced the Libra project in June is how members of the Libra Association have stepped up in a big way. It’s been so rewarding to see this organization become operational and increase its independence. 7/8

If all the organizations that have left the Libra project earlier wish to come back, will they be allowed?  If they will be, what changed? Except Facebook’s Libra accepting to play by the rules (that the project was supposed to overcome) – nothing really changed – as such – what is the justification of these companies to return to Libra network?

Question: Will the projects that participate in Libra network have access to users spending behavior data?

Tweet 8 of 8: This one is actually a good thing

David Marcus on Twitter

We will collectively continue to work as hard as we can to enable people and businesses to send and receive money globally as easily as it is to send a text message and at a much lower cost – but for now – here’s Libra’s updated white paper: https://t.co/vWeFD1cGAi 8/8

Well, in the end, Facebook has an amazing global user base and can become the Trojan Horse that carries the US Digital Dollar to the world.  If this happens, it could be a big blow to the Chinese Digital Yuan. 

Question: Will the information between digital dollar and Facebook’s Libra bridge seamlessly to follow the money easily to avoid nefarious activities?

Here is why we wouldn’t trust Libra!

As they say, history may not repeat but it certainly rhymes, and Facebook has a history of privacy breach incidents that not only repeat, they repeat often and bigger than the previous one. They paid $5 Billion in fines and did we mention, no one ever went to jail for playing with people’s privacy.   

This is one of the biggest concerns we have about Facebook entering the money space.  As a financial services company – Facebook will have access to even more sensitive information and spending behavior.  How will this data be used in advertising and in some form manipulating consumer behavior?

Our skepticism is not about Facebook’s ability to pull this off, we know they will, our skepticism is about ‘should they be in this space altogether.’

Here is why we think Facebook’s Libra is a good thing

World is echoing the ‘China distancing’ sentiment.  While the countries are grappling with COVID crisis, China has moved forward with Digital Yuan (Central Bank Digital Currency) plans and is rolling out the digital currency in May 2020.

The US can use Facebook’s Libra as the medium to reach a much broader population with Digital Dollars.  

Ultimately, Facebook’s Libra could become the US Digital Dollar’s Trojan Horse into the financial world of the unbanked and cement its place as ‘global reserve’ further.

In addition, acceptance of Facebook’s Libra could propel the Bitcoin and Cryptocurrency movement as people will start realizing that Facebook’s Libra is not truly decentralized.  This could be the mass exposure we need for people to realize what Crypto is.

We will all have to wait and see as to who wins the crypto race: Facebook’s Libra or Digital Dollar or Bitcoin or some Alt Coin

best Crypto Tax Software

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

IMPORTANT DISCLAIMER

We have used referral codes where available.

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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CryptoSpace

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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