Facebook’s Libra white paper was released on Tuesday morning. According to the ‘stable-coins’ outline, it’ll be a digital currency that’s centralized, despite claims to the contrary. After reading the white paper, it’s truly closer to a central bank than a cryptocurrency. On Monday Evening, on the cusp of the news, Bitcoin set a new 52-week high of $9,460.
It’s difficult to determine when Bitcoin will crack the $10,000 psychological barrier again, but it’s inching closer. The last time Bitcoin broke $10K led to the eventual moonshot of $20,000 in 2018, just a bit over a month after passing the major psychological hurdle.
What’s not difficult to proselytize however, is Facebook’s centralized project. The networks existing 1.5 billion users will undoubtedly become more curious about Bitcoin after the Libra news and future launch. Facebook’s deceitful exploitation of users’ data over the last 15 years has been atrocious; no one should willingly use their fake ‘crypto’ to transact and lose even more precious privacy.
Already European and American politicians are proclaiming Libra shouldn’t be allowed to exist, calling it a threat to their propped-up fiat currencies. The French Government, just hours after Libra’s announcement, called for the French Central Bank to review the matter. Unlike Bitcoin, it’s actually possible to shut down the Libra Network. If governments are successful, that’ll dash Facebook’s hope to turn the decentralized cryptocurrency space into a co-opted centralized corporate oligarchy. We’ll have to wait until 2020 to see the release of Libra and its centralized protocol roll-out, but Bitcoin could already be over $25,000 by then.
It’s also important to note that less than a year ago Facebook banned all cryptocurrency advertisements. Censoring users not only in the political realm, Facebook had no problem trying to stop organic growth of Bitcoin and other cryptocurrencies. All the while, behind the scenes they were working on hatching their own project. Despite Zuckerberg’s edict to outlaw advertisements, Bitcoin rebounded 2x post capitulation and is bracing for new all-time-highs.
Monday’s 52-week high, set up a new gap in CME Future Contracts of $570. The gap is between $8,485-$9,055.
As state fiat currencies continue their decomposition, more individuals are looking for a safe haven to store and protect wealth. There’s a great deal of talk again by the U.S., U.K. and Australian Central Banks about further quantitative easing and further debasement of our wealth. This will inevitably lead to a decline in purchasing power across the board internationally. The influx of new fiat paper flooding the money supply will encourage the growth of Bitcoin. Up greater than 250% since December, a $250,000 Bitcoin per unit, is not out of the realm of potential outcomes in the next ten years. The quarter million dollar BTC scenario actually seems quite likely, given the rapacious appetite of central planners, and their shortsighted history of botched monetary interventionism.