Cryptocurrency is a growing market these days. Ever since the Bitcoin boom of 2017, more and more people have made the decision to invest in cryptocurrencies. But, it’s not just Joe public entering the market; indeed, other companies and businesses are understanding the important future crypto might have for the world and are looking for ways of entering the market.
Whether it’s MoneyGram partnering with Ripple or IBM teaming up with Stellar Lumens, companies seem to want to get their fingers into as many crypto pies as possible. A few months ago, Facebook controversially announced that it would be launching its own cryptocurrency, known as Libra. This generated plenty of buzz across the crypto-sphere, some good and some bad, so let’s look a little closer at Libra.
How does Libra work?
Libra is not an uncommon choice for cryptocurrency coin in that it is a digital coin people can access through apps and use to pay for things. It seems likely that the majority of purchase options when using Libra will be to buy or pay for things on Facebook itself. It is similar to PayPal, however the USP with Libra is the fact that it’s aimed at those who have no bank account, a move that has proven successful for other cryptos in the past. Libra is what’s known as a stablecoin, because it is linked directly to the US dollar, and this makes it attractive for a lot of people.
What’s the use case?
As we stated above, Libra can be used to pay for things online, and you won’t need a bank account to own it. However, there is more to the use case than simply the ability to spend Libra online. Around 30% of the world’s adult population doesn’t have access to a bank account, so Libra is an essential choice for them. It makes international payments and money sending much easier, and allows this to be done for a fraction of the usual cost. Furthermore, you can use Libra as an alternative to a credit card in some cases, and it’s clear that there are a lot of companies that are expected to embrace it once it launches in 2020, including Uber, eBay, and Spotify.
Should you invest in it?
Well, this is something we can’t decide for you either way. There are a lot of things that it is important to consider when looking to invest, and you have to be sure you are making the right decisions. Do plenty of research first and understand exactly what Libra is and how it works. Price is also something you should look into, though it seems like the coin will have near parity with the US dollar. Just decide how much you’re prepared to invest, and consider the implications involved.
Of course, when it comes to any investment possibility, you need to be very careful and do your own research first. There are a lot of things that play a part in helping you improve your investments, but cryptocurrency can be a volatile market. Use your own initiative and look into Libra a little more to decide whether it is the right choice for you. Sure, it’s a risk, but Facebook is a global behemoth, and for many of us, this might represent an alternative to buying shares in Facebook. At the same time however, it’s a risk!