Business

Why Facebook Libra Is Not a Good Investment for African American Investors

Editors’ note: Last month we published an op-ed from crypto expert and enthusiast, Emilie Jerard, who made the case as to why the just-announced Facebook digital currency, Libra, is worth consideration for African American investors. Now, another black expert in the crypto space, Edwardo Jackson, makes his case as to why Facebook Libra may not be such a good investment option. 

 

Libra, Facebook’s attempt at cryptocurrency, has been confusing at best, disingenuous at worst. Coming from this cryptocurrency enthusiast and bitcoin owner since early 2013, it is time to dispel some common misconceptions.

LIBRA IS NOT A GAME-CHANGER

Will Facebook bring a lot of interest to cryptocurrency due to exposing its 2 billion person worldwide user base to Libra? Absolutely. Will the crypto investor make “200%, 1000%” returns from it? Absolutely not.

Libra is a stablecoin. That means its price will be pegged to a basket of currencies including USD, EUR, and others. Like many other stablecoins, Libra will most likely fluctuate within a narrow range around $1.00 per coin: it is designed not to increase (or decrease) much in price.

Even with easy access to Libra through Facebook, Instagram, and WhatsApp, there is little evidence users will spend it to explore the wide, wild world of crypto. In its marketing materials, Libra claims to want to reach the global “unbanked” to reduce payment remittance costs. If true, it is doubtful there will be as much financial adventurism into crypto as coin enthusiast’s hope.

If anything, because of anticipated KYC (Know Your Customer) rules at signup, it will be even easier for companies and governments to monitor and censor your own money. Don’t be surprised if a future Facebook or Instagram ban gets you locked out from your Libra wallet.

LIBRA IS NOT EVEN CRYPTO

Show of hands: When was the last time you sent someone GPay (Google) money via email or IM? How about when Facebook had its own peer-to-peer (P2P) service in Messenger? But you have probably used Venmo or PayPal, right? Essentially, Libra will be an overhyped version of PayPal with a shiny fake crypto sticker on it.

Having a blockchain isn’t enough. According to crypto godfather, Andreas Antonopoulos, there are five pillars to being truly crypto. A cryptocurrency must be:

  • Open: without restriction to who can own it or mine it
  • Public: independently verifiable through a blockchain or distributed ledger without gatekeepers
  • Neutral: agnostic to place, race, or face
  • Borderless: no one country can claim it or stop it
  • Censorship Resistant: transactions cannot be restricted by anyone

By default, Libra fails at least four of these five principles.

For starters, there will only be 100 validators for the system, as part of the Swiss incorporated nonprofit Libra foundation – setting a company back $10M to join and an estimated $280,000 a year to run. Only these members will be able to check the transaction ledger (the Libra whitepaper itself is hesitant to even call it a blockchain!), which kills the public part. Facebook has been quietly talking to regulators over the past year, definitely killing the borderless part. Can we believe censorship is too far behind?

If you want *real* cryptocurrency that can help the unbanked send payment remittances, then there needs to be exposure to the speed and privacy of coins like Monero, DASH, or even Litecoin (bitcoin is best for savings at this point). All of these are big cap coins with a lot of daily volume and active developer communities maintaining the code.

BLACK PEOPLE WILL GET LEFT BEHIND – AGAIN

With rampant misinformation about what cryptocurrency is and a lack of exposure to it, the black community risks being left out of the picture for the future of money. Of the 28 initial Libra partner companies, none feature any African American-facing companies or interests. While Libra says it wants to partner with some universities as well, would you hold your breath for one of them to be an HBCU?

By using Libra, you’re willingly engaging in taxation without representation. By exchanging American dollars for digital Libra, you give Facebook and its partners the ability to earn interest off your money in traditional banking schemes (taxation) without passing along any of the earned income along to you (lack of representation). They don’t even try to hide it: It’s in their whitepaper. Instead of your dollars hard at work in the community through investment, supporting black-owned businesses, or supporting your “black-owned” self, it will be spread out among Facebook and its corporate partners.

With a 9,500 member Facebook group, Black People & Cryptocurrency (BPC) fights off MLMs (multi-level marketing), badly conceived ICOs, and ill-informed media to self-educate the community and spread the crypto gospel. In an effort to rectify the 2% funding rate of black startup founders, BPC has established an accelerator to develop—and fund—up to 20 crypto and blockchain-focused companies to work with HBCUs.

In BPC, as well as in life, you are encouraged to DYOR: Do Your Own Research. When it comes to the 2020 rollout of Libra and its wannabe-crypto coin, take advantage of its whitepaper to do the same.

The ideas and opinions expressed in this article are solely those of the author’s and not necessarily the opinion of Black Enterprise.

 

 


Disclaimer: The investing advice provided here is solely the advice of the subject’s and not Black Enterprise’s. As all investments pose some financial risk, please consult with your accountant or financial planner before making any investments. 





Source link

health news headlines provided courtesy of Medical News Today.

Advertisement

Advertisement Small

Follow Me

Collaboratively harness market-driven processes whereas resource-leveling internal or "organic" sources. Competently formulate.

View More Job Search Results

Calendar

October 2019
M T W T F S S
« Sep    
 123456
78910111213
14151617181920
21222324252627
28293031  

Pages

Recent Comments

    RSS Meks Blog

    • How to add Instagram photo feed to your WordPress site (in 5 minutes!) October 1, 2019
      How (and why) to add Instagram to WordPress and see more benefits from that match? We give you all the details and tools to do it successfully yourself! The post How to add Instagram photo feed to your WordPress site (in 5 minutes!) appeared first on Meks.
      Ivana Cirkovic
    • 13 best headline & blog title generator tools to easily boost your SEO September 12, 2019
      Ready to increase traffic to your website today? Use these headline generator tools and improve your click-through-rates! The post 13 best headline & blog title generator tools to easily boost your SEO appeared first on Meks.
      Ivana Cirkovic
    • How to create a Facebook Page for your blog (plus PRO tips) September 4, 2019
      Wondering how to create a Facebook Page for your blog knowing that you really do need one? Follow our in depth guide and learn how to create and manage attractive and successful Facebook Page! The post How to create a Facebook Page for your blog (plus PRO tips) appeared first on Meks.
      Ivana Cirkovic
    • Beginners guide on how to redirect a page in WordPress August 29, 2019
      Whether you’re trying to redirect a page in WordPress or just want to discover and understand why it’s important, use this guide to help you get ahead of it and learn all there is to it. The post Beginners guide on how to redirect a page in WordPress appeared first on Meks.
      Ivana Cirkovic
    • The best Facebook Groups for SEO to improve your knowledge and rankings August 21, 2019
      Are you tired of searching for the best Facebook groups for SEO to improve your knowledge and learn about the tricks from the trade? The post The best Facebook Groups for SEO to improve your knowledge and rankings appeared first on Meks.
      Ivana Cirkovic
    • Useful rank tracking plugin and tools recommendation to improve your WordPress website SEO August 15, 2019
      Are you looking for a reliable rank tracking plugin to track your rankings on search engines and improve SEO strategy? Here is our top recommendation! The post Useful rank tracking plugin and tools recommendation to improve your WordPress website SEO appeared first on Meks.
      Ivana Cirkovic
    • 6 reasons why you should never use WordPress nulled themes August 7, 2019
      What are WordPress nulled themes and should you use them, are they really that bad as people say or it’s just to scare you away from using the good stuff for free? In this article, we’re explaining in details why you should never ever use these kinds of themes. The post 6 reasons why you […]
      Ivana Cirkovic
    • Top 6 WordPress Portfolio plugins (hand-picked by designers) July 31, 2019
      Wondering what type of WordPress Portfolio plugins to use to showcase your work? Read our recommendation and choose between these top eight I present to you today. The post Top 6 WordPress Portfolio plugins (hand-picked by designers) appeared first on Meks.
      Ivana Cirkovic
    • Definitive guide to adding Facebook Pixel in WordPress July 24, 2019
      Having problems setting up Facebook Pixel in WordPress? If you want to improve your Facebook ads conversion, use this guide and learn how to properly ad Facebook Pixel in any WordPress site or blog. The post Definitive guide to adding Facebook Pixel in WordPress appeared first on Meks.
      Ivana Cirkovic
    • How to easily create WordPress dropdown menu (without coding) July 17, 2019
      Interested to create WordPress dropdown menu all by yourself and don’t know how? Just follow our guide and learn in no time! The post How to easily create WordPress dropdown menu (without coding) appeared first on Meks.
      Ivana Cirkovic

    Text

    Distinctively utilize long-term high-impact total linkage whereas high-payoff experiences. Appropriately communicate 24/365.

    Archives