Circle CEO Jeremy Allaire has made a bold prediction. He believes that the price of bitcoin will surpass $10,000 by June 21, marking the beginning of what he’s dubbed “crypto summer.” He points to Facebook’s Libra launch as the catalyst for the bullish outlook.
His prediction doesn’t seem far-fetched considering the price of bitcoin is marching toward $9,000.
Facebook’s Libra to Boost Bitcoin Price
Allaire believes that the launch of Facebook’s cryptocurrency, Libra, will prove to be a catalyst for the bitcoin price as it could bolster adoption. The bitcoin bull’s thesis seems justified as Facebook reportedly has 2.38 billion monthly active users, accounting for nearly 31% of the global population.
What’s more, Facebook has brought more than a dozen companies on board to back Libra, including payments giants Visa, Mastercard, PayPal, and ridesharing specialist Uber.
A collection of companies including Visa, Mastercard, PayPal and Uber will invest around $10 million each in a consortium that will govern the digital coin https://t.co/k6TroXX8Oz
— The Wall Street Journal (@WSJ) June 14, 2019
This indicates that Facebook has a grand plan wherein it can put its cryptocurrency into practical uses straightaway thanks to the partnerships it has struck.
Allaire is probably under the impression that Facebook’s Libra will be able to demonstrate the real-world use of cryptocurrencies on a broader scale thanks to the social media giant’s huge user base.
Facebook’s Big Disadvantage
Facebook’s Libra could take crypto adoption to the masses. There’s a good chance that it will make bitcoin look good instead of disrupting it.
Facebook’s cryptocurrency will be controlled by the social media company. It won’t be decentralized and anonymous the way bitcoin is. As it turns out, Facebook CEO Mark Zuckerberg has reportedly been talking to regulators to get them on their side as he looks to create a bitcoin killer.
Zuckerberg has reportedly spoken to U.S. Treasury officials and the Bank of England’s governor, indicating that he is trying to whip up support from the establishment for Libra. But this defeats the purpose of cryptocurrencies.
Considering Facebook will control Libra, it could have control over your data that might be shared with the establishment. This means that Libra might not keep your transactions private the way bitcoin can. Moreover, Facebook’s history of security breaches suggests that your critical data may not be safe.
In fact, don’t be surprised to see Facebook selling your payments data to one of its partners who might then solicit you with their own products. Moreover, what if Facebook suddenly decides that you aren’t allowed to use Libra and freezes your funds, just like it has done with user accounts in the past?
All of this will play into bitcoin’s favor. BTC serves the true purpose of crypto and doesn’t cater to any establishment. So don’t be surprised to see the price of bitcoin ride the popularity of Facebook Libra not only in the short run but also in the long run because of the many advantages BTC has over Mark Zuckerberg’s new coin