As and when the news of Libra coin evolved, there have been some crypto enthusiasts discussing the differences between both of them. Let us check them out:
#1 The first and foremost thing that differentiates the two of them is that Libra is a Proof of Stake (PoS) coin while Bitcoin works on Proof of Work (PoW) algorithm.
#2 Libra is more of a medium of exchange while Bitcoin facilitates the transactions and also regarded as more of a store-of-value. Bitcoin is “Digital Gold” while Libra is a “Digital Dollar”.
#3 Libra is a stable coin and is not a prey to market volatility while Bitcoin is succumbed by volatility and fluctuations.
#4 Bitcoin is completely decentralized while Libra will be managed and governed by a centralized entity Libra Association.
Future of Libra
These are the possible implications of Libra crypto in the future:
#1 FB has a higher probability of furthering its place as a service provider of open source tools for sites, digital apps and e-commerce.
#2 Due to its increased accessibility from everyday retail users and institutional providers, Libra may add up the cryptocurrency volume.
#3 It might turn out to be payment facilitators, which can reshape the payment industry, which might threaten the existence of traditional financial institutions.
#4 Service providers may come up, building decentralized applications on the Libra network, which might serve as a payment provider across the globe.
#5 Libra might see global adoption and can even emerge as the “unit of trade”, which would reduce the dependency on a single currency.
The magnitude of Libra’s success directly depends on how Libra association can convince the financial institutions and regulators in maintaining the custody of collateral reserves. You must even know that the Facebook corporation and Libra Association are two separate entities, which might add on to pulling the trust of the people across the world. coinswitch.co