Today is a dark day for cryptocurrency-holders and users, Bitcoin fell by 11 percent to 11,500 dollars approximately. But most “‘altcoins” are falling much more, Ether, for example, 12, Litecoin 15 or Bitcoin Cash 18 percent. Steem plunged 14 percent to 0.2842 USD. One of Steem’s greatest rivals, EOS, plummeted 20 percent. (All data by Coinmarketcap.com.)
Libra is the key
The chart shows us the situation when Bitcoin surged more than altcoins in the last weeks, and today it falls less than alts. The market share of the leading cryptocurrency is on levels not seen since the beginning of 2017.
The cause of the fall can be the repeated attacks regarding Libra, Facebook’s planned cryptocurrency. “Libra raises many serious concerns regarding privacy, money laundering, consumer protection, and financial stability” – said Jeremy Powell, Fed-chairman to the committee of the US Senate. Adding that he did not think the project could proceed unless those concerns were addressed – wrote Reuters.
User-friendly solution
It is now clear that the jump in Bitcoin price in last weeks was triggered by Libra, and the fall of it is also related to it. Many people were hoping Libra opens new doors, new users will appear to the cryptocurrency-scene. Maybe people learning the Libra – that should be easy to use – they will also learn the value and benefits of other cryptocurrencies.
These hopes are seemingly fading quickly. Not only Powell and the Senate, some days before also another committee of the House of Representatives addressed heavy concerns. And urged halt to Facebook’s project. Many countries are attacking Libra or predicting its prohibition.
Competitors are always coming
But, I personally, think that if Facebook can’t realize its plan to create Libra, other companies or organizations can. Libra is about to correct errors of other cryptos, for example, the incredibly high volatility. A secure cash puffer backing its value, a good, secure and user-friendly wallet, many use cases – also smart contracts are on the list – can make it a really popular crypto.
If Facebook can’t make it, maybe others will make it, they only have to copy the main ideas and join forces. Perhaps in other, crypto-friendly states, like Switzerland or Malta, Sweden or some remote island. Maybe ten or 22 competitors will emerge quickly. Maybe we are at the edge of an incredible stablecoin-boom.