Facebook’s Libra Prompts Important Discussion in Crypto

Steve Kanaval - June 19, 2019

Money has moved over the years from cash to credit card to digital currency beginning with the Nixon Administration removing the US Dollar from the Gold Standard in the 1970s, and allow global currencies to free float against one another, but the emergence of Bitcoin gained real traction when the housing market crashed in 2008.

In 2009 the world realized that the juggernaut US Marketplace had terrible flaws, and if we depended on the Federal Reserve, we would end up waiting in a line at an ATM that would never re-open, and to hold all of our assets in a currency with no backing other than the good faith of the government was an error in judgement – enter Bitcoin – a digital currency which was de-centralized.  The price and followers exploded for Bitcoin at this juncture and is now getting traction again as we emerge from Crypto Winter.

Facebook announced it will launch Libra in 2020 and leverage the billion global users essentially addressing the same problems the global consumer saw in 2008, the need to have a barter exchange coin or tool that is de-centralized away from the government.  In many countries like Venezuela, Greece and nearly everywhere in South America where inflation can destroy saving if holding the local currency can ruin economies and the good faith in these local corrupt governments.  Facebook is larger than most countries in terms of revenue, and Libra will be an insulated way to transact.

It’s great to see the important uses and questions for digital currency adoption, these are the right questions to ask, believing fully in your government does not fit a changing global economy, and the consumer seeks a digital solution to spending without hoping the government will solve all problems.

It’s time to pay attention again to Bitcoin and other uses for digital currency.

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Steve Kanaval

Steve Kanaval: Portfolio Manager/Writer/ Market Analyst Steve began his career in the Trading Pits in Chicago making markets at the Chicago Mercantile Exchange (NYSE:CME) the Chicago Board of Trade and the CBOE in the early 80's. He ran the Morgan Stanley Derivative Prop Trading for the firm specializing in Index Arbitrage. He continued his career as a Trader/Portfolio Manager for multiple Hedge Funds during the Internet Boom of the 90's managing large portfolios. Steve is known as an expert in MicroCap Technology Stocks and the emerging Digital Currency markets as a Portfolio Manager for his Family Office. Steve has managed portfolio's in volatile asset classes for 3 decades as a commodity trader, hedge fund manager and digital currency trader and miner. Steve publishes his views on the asset classes in a public forum and has published many articles simplifying these complex and volatile assets for readers. His work is published on multiple sites including Bloomberg, Equities.com, Hacked.com, CryptoCurrencyNews as a paid contributor. His work includes research, journalism and archived video on important market volatility related to stocks, digital currency and other volatile misunderstood asset classes. He offers a humorous, unique insight and the related back stories and drivers for readers interested in volatility and emerging market assets. Full disclosure Steve is long 25 digital currencies and sits on the board of multiple public companies involved in digital currencies, and owns shares in these companies from time to time.

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