Facebook is launching a cryptocurrency. Named Libra, Facebook is developing a stablecoin. News of Facebook working on its own cryptocurrency is not new, it’s been around for a while, but the release of the white paper is being used as a probable reason for Bitcoin’s $2,000 move this week.
All traded markets are discounting mechanisms, pricing in the expected, reacting to the unexpected. It’s the reason companies can announce dreadful results and yet rally in price because the results, though terrible, were better than expected.
Is the move in Bitcoin factoring in not Facebook’s cryptocurrency debut, but the potential of Facebook’s entry into the cryptocurrency space?
It’s not about Libra. It’s about legitimacy and what legitimacy infers. It could, for example, soften India’s stance on cryptocurrencies. India has a population of over 1.3 billion people, equivalent to over 17% of the world’s population. What effect would legalising cryptocurrency in India have on the market?
It’s unknown, but Facebook’s entry into cryptocurrency adds a variable that needs to be priced in, but it’s often not the news itself, but the implications of the news that has the most effect.
One skill deployed by the 5%, the most successful group of speculators and investors, is the transmutation of new information.
https://www.altcoinsidekick.com/blog/velvet-revolution
