Bitcoin Versus Libra: Which Crypto Is Going to Rule The World
With the disruption of bitcoin, there is a huge crowd in the crypto market. Also, digital media and the internet is now flooded with the terms bitcoin, blockchain, and cryptocurrencies now and then. Again, entrepreneurs, business owners, and even some big corporations are involved in cryptocurrencies.
When Bitcoin was invented in 2009, people were resisting the idea of digital currency. Gradually, people began to accept the concept of virtual currency. Today, the social media giant, Facebook has also developed its own digital currency called “Libra.” But several concerns have been raised about Libra as to whether it is a cryptocurrency.
On the other hand, it’s compared to bitcoin and other popular crypto coins. However, it’s very important to understand that both Bitcoin and Libra are different. They are distinctive from the technical point of view as well as from their applications. Let’s take a look at how both of these two digital currencies are different.
Key Difference Between Libra and Bitcoin
Here I have mentioned three major differences between Libra and Bitcoin in terms of technology, regulation, and applications.
Differences in Terms of Technology
First, in terms of technology, both of these digital coins are distinct. As you know, Bitcoin was created anonymously by Satoshi Nakamoto. And the underlying technology blockchain is a public ledger that is not regulated by any central body or financial institution.
On the other hand, Libra has a central authority body. However, the transaction also includes blockchain technology, which is regulated and can be managed by a third party. Libra is developed by a Swiss-based organization called the Libra Association. About $10 million has been invested in the project in collaboration with other organizations where Facebook is also a stakeholder.
That’s why there is a major concern about the authority and tampering of the transaction within the Libra blockchain network. As far as this security and authority concerns are involved, bitcoin is better than Libra, according to many experts. Some crypto experts even raise issues that Libra is not a cryptocurrency.
Differences in Terms of Regulation
Facebook has become the center of attention of the crypto community while the regulatory concerns are raised. Because of the popular cryptocurrency, Bitcoin does not require an intermediary for financial transactions. As there is no intermediary is involved so there is not an intermediary risk is found in the bitcoin blockchain network.
Whereas Libra has no intermediary but Libra Association controls the blockchain technology through which Libra operates. The official announcement of Libra was launched on June 18, 2020. Before this, there were a lot of discussions regarding the coin. There are many concerns about the regulation of the coin.
However, many experts also predict that with a trusted infrastructure and proper regulation Libra could beat bitcoin in the future. There is no certainty regarding this matter, but the Facebook-owned digital currency has the potential to beat bitcoin.
Differences in Terms of Application
In terms of application bitcoin’s white paper depicts that it is a p2p payment system, where people can send and receive money without any intermediary like a bank or any financial institution.
Today, people are commonly investing in bitcoin and earning significant profits through sites like bitcoin champion. Bitcoin is also used as a currency to exchange goods and services in many countries. But due to its volatility is has not widely accepted as a currency in many countries even today.
Whereas, the main purpose of Libra is to transfer money and cross border payments. Unlike, bitcoin it is expected that the value of Libra will be stable so it can be a viable mode of transaction and can get wide acceptance by the public. However, Libra is recently launched so nothing could be predicted in a shorter period. But there is a positive response from the public at the launch of Libra.
Libra has become famous in a very short period, and it may be accepted by the masses. This is the biggest corporate funding ever made in the history of cryptocurrencies. Many experts believe that it has the potential to become mainstream for a blockchain exchange of value. It’s very hard to guess whether Libra can conquer Bitcoin, but according to many experts, it has the potential to beat Bitcoin.
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