Daily Archives: February 20, 2020

#NameMarket CapPriceVolume (24h)Circulating SupplyChange (24h)Price Graph (7d)#NameMarket CapPriceVolume (24h)Circulating SupplyChange (24h)Price Graph (7d)

1

$175,132,022,926

18,227,775 BTC

-5.19%

2

$28,324,598,073

109,779,741 ETH

-7.88%

3

$11,990,763,460

43,734,776,327 XRP *

-7.12%

4

$6,830,268,718

18,288,875 BCH

-9.70%

5

$5,191,035,782

18,286,302 BSV

-7.59%

6

$4,660,006,235

4,642,367,414 USDT *

0.48%

7

$4,474,985,148

64,124,509 LTC

-9.71%

8

$3,809,753,314

953,770,826 EOS *

-12.40%

9

$3,388,458,254

155,536,713 BNB *

-9.02%

10

$2,538,048,289

701,368,049 XTZ *

-3.89%

11

$1,510,652,894

350,000,000 LINK *

-8.89%

12

$1,490,706,176

25,927,070,538 ADA

-8.00%

13

$1,427,038,925

20,187,010,846 XLM *

-6.57%

14

$1,364,707,052

17,451,660 XMR

-8.67%

15

$1,319,106,142

66,682,072,191 TRX

-10.97%

16

$1,086,088,135

233,370,545 HT *

-7.59%

17

$1,021,144,114

116,313,299 ETC

-8.43%

18

$986,729,179

999,498,893 LEO *

1.03%

19

$977,239,530

70,538,831 NEO *

-9.60%

20

$972,904,885

9,336,154 DASH

-8.75%

21

$831,573,875

190,688,439 ATOM *

-3.93%

22

$801,552,427

13,792,694,064 CRO *

-6.47%

23

$773,272,887

288,208,798 HEDG *

-3.47%

24

$733,720,141

2,779,530,283 MIOTA *

-9.18%

25

$636,655,182

987,418 MKR *

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Cryptocurrency Market Capitalizations | CoinMarketCap

What Is a Cryptocurrency?

A cryptocurrency is a digital or virtual currency that is secured by cryptography, which makes it nearly impossible to counterfeit or double-spend. Many cryptocurrencies are decentralized networks based on blockchain technologya distributed ledger enforced by a disparate network of computers. A defining feature of cryptocurrencies is that they are generally not issued by any central authority, rendering them theoretically immune to government interference or manipulation.

Cryptocurrencies are systems that allow for the secure payments online which are denominated in terms of virtual "tokens," which are represented by ledger entries internal to the system. "Crypto" refers to the various encryption algorithms and cryptographic techniques that safeguard these entries, such as elliptical curve encryption, public-private key pairs, and hashing functions.

The first blockchain-based cryptocurrency was Bitcoin, which still remains the most popular and most valuable. Today, there are thousands of alternate cryptocurrencies with various functions and specifications. Some of these are clones or forks of Bitcoin, while others are new currencies that were built from scratch.

Bitcoin was launched in 2009 by an individual or group known by the pseudonym "Satoshi Nakamoto." As of Nov. 2019, there were over 18 million bitcoins in circulation with a total market value of around $146 billion.

Some of the competing cryptocurrencies spawned by Bitcoins success, known as "altcoins," include Litecoin, Peercoin, and Namecoin, as well as Ethereum, Cardano, and EOS. Today, the aggregate value of all the cryptocurrencies in existence is around $214 billionBitcoin currently represents more than 68% of the total value.

Some of the cryptography used in cryptocurrency today was originally developed for military applications. At one point, the government wanted to put controls on cryptography similar to the legal restrictions on weapons, but the right for civilians to use cryptography was secured on grounds of freedom of speech.

Central to the appeal and functionality of Bitcoin and other cryptocurrencies is blockchain technology, which is used to keep an online ledger of all the transactions that have ever been conducted, thus providing a data structure for this ledger that is quite secure and is shared and agreed upon by the entire network of individual node, or computer maintaining a copy of the ledger. Every new block generated must be verified by each node before being confirmed, making it almost impossible to forge transaction histories.

Many experts see blockchain technology as having serious potential for uses like online voting and crowdfunding, and major financial institutions such as JPMorgan Chase (JPM) see the potential to lower transaction costs by streamlining payment processing. However, because cryptocurrencies are virtual and are not stored on a central database, a digital cryptocurrency balance can be wiped out by the loss or destruction of a hard drive if a backup copy of the private key does not exist. At the same time, there is no central authority, government, or corporation that has access to your funds or your personal information.

Cryptocurrencies hold the promise of making it easier to transfer funds directly between two parties, without the need for a trusted third party like a bank or credit card company. These transfers are instead secured by the use of public keys and private keys and different forms of incentive systems, like Proof of Work or Proof of Stake.

In modern cryptocurrency systems, a user's "wallet," or account address, has a public key, while the private key is known only to the owner and is used to sign transactions. Fund transfers are completed with minimal processing fees, allowing users to avoid the steep fees charged by banks and financial institutions for wire transfers.

The semi-anonymous nature of cryptocurrency transactions makes them well-suited for a host of illegal activities, such as money laundering and tax evasion. However, cryptocurrency advocates often highly value their anonymity, citing benefits of privacy like protection for whistleblowers or activists living under repressive governments. Some cryptocurrencies are more private than others.

Bitcoin, for instance, is a relatively poor choice for conducting illegal business online, since the forensic analysis of the Bitcoin blockchain has helped authorities to arrest and prosecute criminals. More privacy-oriented coins do exist, however, such as Dash, Monero, or ZCash, which are far more difficult to trace.

Since market prices for cryptocurrencies are based on supply and demand, the rate at which a cryptocurrency can be exchanged for another currency can fluctuate widely, since the design of many cryptocurrencies ensures a high degree of scarcity.

Bitcoin has experienced some rapid surges and collapses in value, climbing as high as $19,000 per Bitcoin in Dec. of 2017 before dropping to around $7,000 in the following months. Cryptocurrencies are thus considered by some economists to be a short-lived fad or speculative bubble.

There is concern that cryptocurrencies like Bitcoin are not rooted in any material goods. Some research, however, has identified that the cost of producing a Bitcoin, which requires an increasingly large amount of energy, is directly related to its market price.

Cryptocurrency blockchains are highly secure, but other aspects of a cryptocurrency ecosystem, including exchanges and wallets, are not immune to the threat of hacking. In Bitcoin's 10-year history, several online exchanges have been the subject of hacking and theft, sometimes with millions of dollars worth of "coins" stolen.

Nonetheless, many observers see potential advantages in cryptocurrencies, like the possibility of preserving value against inflation and facilitating exchange while being more easy to transport and divide than precious metals and existing outside the influence of central banks and governments.

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Cryptocurrency Definition

In the early days of blockchain, cryptocurrency trading was seen by many as merely exchanging a few dollars for Bitcoins (BTC). The birth of other tokens and the high volatility in cryptocurrencies have led many traders to speculate by buying a few coins through exchanges in hoping the value will increase for the sake of profit.

The decision to switch to floating exchange rates was made in the second half of the last century, when it became clear to financial institutions that they could not provide the right amount of United States currency secured by a gold reserve. Thus, financial regulators abandoned the gold standard by adopting a system of floating exchange rates. This stage is perceived by many as the beginning of the emergence of the forex market.

Related: How to Trade Big Crypto Volumes, Explained

Cryptocurrency trading is the exact opposite of forex and its options for owning an asset. On crypto exchanges, traders buy the desired token and place an order to sell it, exchanging for another coin or fiat. That is, cryptocurrency trading is a real exchange of one cryptocurrency for another.

At the same time, forex exchange rates reflect the state of the economy of countries. Being very stable assets especially compared to cryptocurrencies the value of fiat currencies mainly change within three to five decimal places. Cryptocurrencies change much more noticeably, and can gain as much as 100% against the U.S. dollars within 24 hours.

Cryptocurrency trading, due to its high margin, can generate good income even without leverage, which very often leads to a loss of deposit. Investing in coins at their early stages has proven to be a highly effective trading tool for increasing capital.

Due to the high volatility in the crypto market, many traders begin to seek or return to the traditional trading market. The price stability of many trading pairs puts the market in a state of hibernation, which is why many traders lose money.

Related: Why Is the Cryptocurrency Market So Volatile: Expert Take

In search of a solution, some part of the community pays attention to other types of trading: futures, options, stocks, or the most popular forex. Forex turnover reaches nearly $6.6 trillion per day. At the same time, futures trading volumes are $440 billion and the U.S. stock market shows a value of $257 billion, while the cryptocurrency market volatility is only $4.8 billion a day.

Despite the advantages of trading on cryptocurrency exchanges, the long history of the forex market stands as one of its strong points. For a long time, traders have received several popular platforms, such as MetaTrader 4 and 5, thousands of indicators, and tools for forecasts and technical analysis. Recently, brokers have begun to add an imitation of a cryptocurrency trader to their platforms. But the essence of the market remains the same.

The impact of the forex market can be removed if cryptocurrency companies can improve on their security levels. One of the main reasons why traders have a hard time trusting cryptocurrency exchanges is because user funds can often go missing. A recent example is Binance being hacked in 2019, wherein an estimated $40 million was withdrawn from the exchanges hot wallets.

Related: Most Significant Hacks of 2019 New Record of Twelve in One Year

One of the solutions for reducing the impact of the forex market in crypto is a project based on the Stellar blockchain. Bridge token enables its users to convert from forex to crypto with outstanding trading conditions and transparency.

The views, thoughts and opinions expressed here are the authors alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

Oluwatobi Joel is a U.S.-based freelance copywriter, community manager, blockchain expert and serial entrepreneur. He has worked with various blockchain startups as a marketing strategist.

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How Cryptocurrency Trading Has Evolved in Recent Years - Cointelegraph

The cryptocurrency known as Tezos is among the years best performing altcoin assets, rising more than 200% year-to-date.

And while the surging crypto asset is showing no signs of stopping, it could go on to double from here, according to a prominent crypto analyst and short-term parabola.

Tezos is a clear cryptocurrency industry standout.

The altcoin recently exploded into the top ten crypto assets by market cap, after an early 2020 rally smashed all expectations and then some.

Related Reading | Top Trader: Tezos Cryptocurrency Can Surge 5-10x After 100% Rally in 2 Weeks

Since the start of the year, Tezos is up an insane 200%.

From the assets late 2019 downtrend bottom, Tezos has quadrupled in value, with a sky-high, over 420% return.

And from the assets bear market bottom, it has grown in value by a staggering 1,125% in a little over a years time.

Analysts have been warning late-to-the-game investors from FOMOing into an asset that has already risen so much, but Tezos has continued to rally, leaving cautious traders filled with regret.

That regret will only grow if Tezos does as one analyst believes and extends its parabola to as much as $6.30 per XTZ token.

The current high is set at $3.70, so reaching such a target would mean that Tezos price doubles from current levels.

Such a rally would cause yet another 100% push from here, taking year-to-date gains to over 400%.

It would also take any investments made from the very bottom to as high as just under 2,000% returns in less than 16-months.

Tezos has completed these amazing feats, all before the bull market has truly begun for cryptocurrencies.

And because Tezos is a relative newcomer alongside other altcoins like Link, who missed out on the last crypto bubble, these shiny new altcoins have less tarnish and negativity to break free from.

The assets also dont have support levels turned resistance to contend with, and instead are in price discovery mode.

Related Reading | Tezos & Ethereum: These Top Performing Altcoins Flash Dangerous Sell Signals

This means that any peaks are just psychological barriers while a true value is established by the way of the push and pull of market dynamics.

This is the exact reason why Tezos could easily double from here, and reach prices of $6.3 in the coming days because no one knows truly what Tezos should be worth, so the speculative asset is likely to explode further until a strong psychological resistance is reached.

When assets perform like Tezos, sky is the limit. But remember, just like Bitcoin at the last bull market peak: everything that goes up that fast, eventually falls back down quite hard.

And with how much Tezos has rallied, while it can certainly go a lot higher, when it does turn around, much of the gains could be erased.

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Tezos to the Moon: How The Unstoppable Cryptocurrency Rally Could Double - newsBTC

In the last three days, the cryptocurrency market has experienced a minor reversal of sorts, with more than $31 billion wiped from the total market capitalization of all cryptocurrencies in the last three days.

Much of this loss can be attributed to the recent bearish momentum seen by Bitcoin (BTC), which fell from over $10,300 on February 15 down to briefly touch below $9,500 today as more than $14 billion was wiped off its market cap. Bitcoin has since recovered slightly and currently sits at just south of $9,600.

Other major cryptocurrencies are also experiencing similar, if not greater losses. As it stands, every cryptocurrency in the top ten by market capitalization is in the red today, with Bitcoin Cash (BCH) and XRP currently performing the worst after losing between 7-8% apiece. Likewise, Ethereum (ETH) and EOS are down around 4% each.

Although it is currently unclear why the market has taken a bearish turn, recent performance issues seen by Binance may have contributed to a change in investor sentiment. Nonetheless, despite its recent losses, the global cryptocurrency market is still up by almost 14% in the last month, and almost 17% in the last three months. As such, there is still some leeway before this adverse market movement can be considered a long-term change in market dynamics.

Story continues

The views and opinions expressed by the author are for informational purposes only and do not constitute financial, investment, or other advice.

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Bitcoin touches $9,500 as $31 billion wiped off cryptocurrency markets - Yahoo Finance

Watchers of the crypto space were beside themselves with the recent news that the U.S. Federal Reserve is apparently considering a digital currency. "Every major central bank is currently taking a deep look" at cryptocurrencies, Fed Chairman Jerome Powell said during a congressional hearing on February 11. "I think it's very much incumbent on us and other central banks to understand the costs and benefits and trade-offs associated with a possible digital currency."

The news drove Google searches for the best-known cryptocurrency, Bitcoin, up by 33 percent, and its price surged past $10,000 for the first time in months. Many are suggesting this is the moment crypto comes off the margins to take up its promised role as a mainstream framework for the future of finance. But a closer parsing of the Fed chair's words suggests we should be skeptical.

Powell's mention of cryptocurrency is tantalizing. But it actually represents more of an evolution than a revolution. The central bank is mostly interested in eliminating inefficiencies and increasing visibility into global finance by, effectively, digitizing the dollar. This may well represent a technological leap, but it isn't the same as a federal cryptocurrency, for one obvious reason: It would still be completely controlled by the Fed.

Blockchain-powered currencies such as Bitcoin and the industry's No. 2, Ethereum, are meant to run without central control. This poses real challenges, and the government's apparent interest in crypto is a reminder of the potential pitfalls and false starts the technology faces on the road to broad adoption. Look no further than the bumpy introduction of Facebook's Libra cryptocurrency, which has drawn a fierce backlash from legislators, bankers and even blockchain enthusiasts themselves.

Interestingly, these parties all share the same fear: that Facebook will use Libra to try to create a parallel economy that the company controls. The crypto community has little faith in centralized systems generallyand especially one run by Mark Zuckerberg. The U.S. government also seems reticent to accede to a financial system run by a private corporation or anyone besides itself. What's revealed here is that central banks like the Fed and the crypto community may be more natural allies than first impressions would suggest. But they must traverse a mutual learning curve before they can truly act in a shared interest. One of the first obstacles is understanding what crypto really is.

The fact is, cryptocurrencies are more than just digitized money. They represent an effort to reshape information and financial systems to make them more secure, more transparent and more trustworthy. They are decentralized and self-perpetuating, governed not by powerful individuals or central entities but by market-oriented incentive structures that are written into their DNA.

The scale of the change is as great as the shift from precious metals to paper money or the invention of credit. The blockchain platforms that undergird cryptocurrencies offer a possible future in which finance is no longer opaque and subject to the judgments of middlemen, but is transparent and accessible to everyone. It is no coincidence that so many of the earliest footholds for decentralized finance are in countries, largely in the global South, where governments have mismanaged economies and large segments of the population lack access to basic financial infrastructure such as banks.

Blockchain and cryptocurrency have already started reshaping our financial and information systems in fundamental ways, but most of these projects don't make headlines on a daily basis. As we continue moving past the industry's collective "trough of disillusionment" brought on by 2017's crypto bubble and subsequent burst, the most exciting crypto projects are still operating largely below the radar. That won't last forever. In just the past several months, my colleagues and I have seen many innovative projects move from design to production, promising to reshape aspects of our digital lives from finance to social media to the Internet itself. This momentum is only likely to continue.

The Federal Reserve and other central banks and regulatory regimes around the world must and will play a crucial role in all this. Someday, national currencies may indeed be superseded by decentralized successors. But it isn't going to happen this year.

What is happening now is the rapid blossoming of blockchain and crypto solutions. In a short period of timeyears, not decadesthese types of projects will begin to rewire our global information channels, finance networks, supply chains and more. Central banks will get to see for themselves just how much benefit distributed ledger technology can have if properly implemented. And in their own time, I believe they will integrate the best of these technologies into their own operations. That really is cause to celebrate.

Sean Medcalf is a co-founder and managing partner of Angle42, a company that provides communications and strategic support to businesses in blockchain and other emerging technologies.

The views expressed in this article are the writer's own.

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The Fed's Cryptocurrency Head Fake | Opinion - Newsweek

This is the web version of The Ledger, Fortunes weekly newsletter covering financial technology and cryptocurrency. Sign up here to receive future editions.

Good morning. The U.S. economy may be going gangbusters, but for those looking for a return on their savings, the picture is less pretty: Even so-called high yield savings accounts offer a pittance in interestGoldman Sachs Marcus product, for instance, currently offers a measly 1.7%.

Thats what makes the new world of decentralized finance, or DeFi, so intriguing. This exotic corner of the cryptocurrency markets has been around for barely two years, but is attracting outsize interest because users boast of earning 4 to 8% interest on deposits.

Those higher interest rates are possible, DeFi boosters say, because there is no bank or other middleman to profit off consumer deposits. Instead, the system relies on pairing individual borrowers and lenders who rely on automated smart contracts to administer loans and pay out interest.

Investors who want to try their hand at DeFi can turn to platforms like MakerDao or Compound, which arrange loan contracts using cryptocurrencies like Ethereum or so-called stablecoins, which are pegged to the U.S. dollar. The platforms are growing quickly and, earlier this month, the fledgling DeFi industry touted the fact that over $1 billion of Ethereum is currently locked up in interest-yielding contracts.

Another reason to take DeFi seriously is the people who are building it. While the industry has its share of crypto cowboys, many others come from the world of mainstream finance. These include Compounds CEO, Robert Leshner, a trained economist who spent years predicting Federal Reserve rates. Another is Richard Ma, who came up trading commodities for Tower Research, and now runs a firm called Quantstamp that audits blockchain projects.

Ma estimates there are only around 50,000 people currently using DeFi products. But he believes this number will soon mushroom thanks to startups like Nuo and Ramp that aspire to be the Stripes and Plaids of the DeFi worldhelping consumers and merchants connect their checking accounts to the new realm of decentralized borrowing and lending. He also predicted 4-8% interest rates will be a spur for investors to cross over to DeFi.

There is, of course, no guarantee any of this will come to pass. The paltry number of current DeFi users underscore that its still a fringe area of finance, and that even sophisticated investors will have a hard time getting their head around notions like automated Ethereum contracts. Meanwhile, an ingenious robbery this weekend, in which a hacker conned a DeFi service out of nearly $1 million, showed the technology is neither as secure or decentralized as its evangelists claim.

But like Bitcoin or the Internet itselfwhich many once dismissed as a fadit feels like Defi is here to stay. The idea of an open financial system beyond the banks is a powerful one, and there are too many smart people building it to think it will be stopped. And that promise of 8% interest rates might be too sweet to ignore.

A final note to Ledger readers: Weve already assembled an impressive list of names to join us in Montauk for Brainstorm Finance on June 17 and 18. They include top executives from both traditional finance and crypto companies, and a surprise dinner guest. Well be sharing more details next week.

Jeff John Roberts

@jeffjohnroberts

jeff.roberts@fortune.com

Excerpt from:
Cryptocurrency, decentralized finance, and the sweet promise of 8% interest - Yahoo Finance

As the cryptocurrency markets are in freefall, global cryptocurrency regulation appears to be turning bearish as well. While one SEC Commissioner proposes a safe harbor for cryptocurrency projects, the US Secretary of the Treasury announces significant new regulation. So, what gives? Top five countries promising stricter cryptocurrency regulation 1. Brazil The cryptocurrency scene in Brazil []

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Global cryptocurrency regulation is turning bearish in these five countries - CryptoSlate

As Africa continues to advance its fast-paced economic growth, we take a look at global crypto giant Paxfuls priorities for the region.

The world has much to learn from Africa about the future of the crypto-economy, comments Paxful, 2020 will be a landmark year for the African crypto and blockchain industry. In a recent report conducted by Paxful into its operations undercovered that in 2019, worldwide processed US$1.6bn in trade volume and hosted 3mn wallets. Of those 3mn wallets the company confirmed 45% are from Africa.

Strengthen its relationship with Africa

Over the next few years, Paxful plans to ramp up its efforts within the region to increase its customer base and continue to learn from its customers in order to provide the best peer-to-peer finance marketplace.

In addition to its marketplace, Paxful hopes to expand Africas participation in its Global Peer Programme. which encourages bitcoin users to educate each other on the opportunities a crypto-economy can provide.

We are very, very bullish on Africa and believe it is critical to the future of the crypto-economy overall. While many parts of the developed world are fixated on speculative activity in the crypto economy, people in Africa are teaching us about the true use cases of bitcoin and the opportunity it presents for greater financial inclusion of the under-banked. As a company, we want to do what we can to ensure that our platform continues to be a bridge to the global economy for our customers Says Artur Schaback, Co-Founder and COO of Paxful.

Partnership expansion

Over the years, Paxful has partnered with many key players within the cryptocurrency industry, including BitMart, BSpin, AirTM, and CoinLogiq. With this in mind, the company wants to increase its partnerships with African companies.

Africa has tremendous potential and partnerships are essential in this pivotal time within the cryptocurrency industry. We are actively looking to join forces with African-born crypto players who share our passion and vision for the global crypto-economy, says Ray Youssef, CEO and co-founder of Paxful.

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Priorities education and social good

In 2019, Paxful completed a university education drive in East and SouthAfrica. The drive reached over 1000 people, providing practical insights into use cases of Bitcoin, how to avoid falling prey to threats and mitigation speculation.

With bitcoins original mission of financial inclusion in mind, Paxful is committed to reaching as many people as possible to help them better understand the opportunities presented by the crypto-economy. With this in mind, education and social development will always be a priority for Paxful, concludes Youssef.

For more information on all topics for FinTech, please take a look at the latest edition ofFinTech magazine.

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The future of blockchain and cryptocurrency in Africa - FinTech Magazine - The FinTech & InsurTech Platform

/latest/2020/02/what-exactly-is-facebooks-libra-cryptocurrency-what-are-its-challenges/

What Exactly Is Facebooks Libra Cryptocurrency? What Are Its Challenges?

The new decade is set to launch with one of the most ambitious cryptocurrencies yet, with the social media giant Facebooks Libra expected to start trading in a few months. The new coin certainly has the muscle behind it: in fact, it has an entire Libra Association that consists of companies such as Spotify, Farfetch, Uber, Lyft, PayU (Naspers fintech arm), and Calibra. Along with a plethora of other venture capital firms spanning the blockchain and telecommunication networks, and some non-profit organisations.

The vision of Libra is put in no uncertain terms on its official website. That is to create: a stable global cryptocurrency built on a secure network enabling a more inclusive global financial system.

What Facebook and the other giants hope to achieve is to connect everyone in possession of a mobile phone to the global financial infrastructure. These are what Facebook considers the unbanked, those who do not have access to a bank, but who do have a mobile phone.

Libra would give these unbanked masses the ability to transfer money across the world instantly, on a secure network and at a low cost. If implemented, Libra would be an example of leapfrogging technology, in which developing societies bypass what traditionally would have been a necessary technological evolution (i.e. the establishment of more banks) in order to get to an end point.

Current proposals put Libra on a blockchain that encompasses around 100 computer servers, at least thats the ambition. The blockchain algorithms will be programmed to work as whats known as a command-line programme, something that will make scripting and interactive usage possible; with an interface of consistent options and file formats. For further security, Libra is also thought to be using Byzantine fault-tolerant consensus approach. This means that, in theory, the wider blockchain cannot be compromised even if one of the servers is disrupted.

But not everyone has faith in the new cryptocurrency, even with all the financial backing it has. Again, in theory, it should be almost impossible for a cyberattack to disrupt Libras blockchain, as a third of its 100 servers would have to be disrupted before such an attack could even be launched.

The Libra Association has also stressed that each of its members will have their own server, and that it will be supported independently by them and secured. Furthermore, the blockchain will have its own consensus-based algorithm. Meaning that transactions must be approved by two-thirds of all the servers before going ahead. This should make transactions more measurable and efficiently processed. Facebook has even said that Libra would be capable of processing a thousand payments per second, which would make it about 500 times more efficient than Bitcoin is today.

Despite the proposed ambitiousness of Libra, the United States and European Union regulatory bodies are yet to be won over. They already do not like the strength of pre-existing cryptocurrencies. Some countries have even outright banned them.

To get round this problem, the Libra Association has marketed its currency as one that has been specially designed to be friendly to regulators from the get-go. They insist, for example, that Libra is a stablecoin. If true, then this should alleviate some national fears for its potential implications on monetary policies. Still, there are concerns that if the Libra is very popular, it could become Too Big To Fail, which of course is a phrase still haunted by the 2007-08 economic crises.

The reason for these TBTF anxieties lies in the fact that Libra is intended to be collateralised by other currencies and some debt obligations. If there was ever a run on Libra, it would lack a centralised bank to mitigate the damage.

Libras special status means it will be a global currency and not specific to any one nation. So it is only natural that some national governments have expressed concerns about how it will impact on their unilateral monetary policies. Libras global status assures that it will fluctuate differently to any one other currency, meaning it will be shaped by its underlying assets, and may even resemble something like an index in volatility.

One way to address these fears may be found in a report conducted by the Association of German Banks. The AGB has suggested restricting Libra for payment transfers only, and not giving it the ability to provide loans. this would prevent the cryptocurrency from becoming a money creation system in its own right.

Cryptocurrencies have enjoyed successful investment status and investment is predicted to keep increasing until 2020 at a minimum. Blockchain investments in the Libra cryptocurrency should be considered as a hedge in a diverse portfolio to protect against falls in other types of investments. Of course, at the moment Libra is not an asset that can be invested in yet. But once it comes online, theres no reason it wont enjoy the success of others (not including the decline of Bitcoin, which may be in response to more competition from other cryptocurrencies).

Once online, Libra should be safe to invest on optimised cryptocurrency trading platforms that can handle automated and manual trading.

iven other fears including loss of tax revenues and transaction fees, traditional banks have already acknowledged that change is coming. In its Future of Finance report, the Bank of England has already said that hard infrastructure needs to make room for, and can work with, soft infrastructure (cryptocurrencies). But what needs to be in place is a well-respected judicial and legal system, along with clear regulations, standards and rules.

As for the Libra cryptocurrency, no one can doubt the ambition of such a project. But whether it is something that the market actually needs is still a question that no one as of yet has an answer for.

Featured image by Tim Bennett on Unsplash.

This article was written by Neil Wright of Oakmount Partners Ltd, an investment consultancy firm based in Essex, UK.

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What Exactly Is Facebooks Libra Cryptocurrency? What Are Its Challenges? - CryptoGlobe