Five reasons why Libra Bitcoin is inferior.
1. Libra is not decentralized
Creating exhaustive decentralization is non-trivial. It could be argued that Bitcoin is currently the only truly decentralized crypto project in the world. After all, behind the vast majority of Altcoins are foundations or companies that have a certain amount of power over other network participants.
Undisputed, however, is the centralized structure of the Libra Coins. Only 100 Validator Nodes should exist according to the contents of the white paper. By comparison, the Bitcoin network has 10,554 active Full Nodes at the time of writing.
2. Libra is not censorship resistant
The lack of decentralization then brings us a series of sequelae. Above all, Libra should be anything but “permissionless”. Because of the centralized structure, governments have targets for regulatory intervention. For example, Facebook could be required to block certain wallets at Libra at the request of the authorities.
Due to the economic sanctions against Iran, the Coin on the Persian Gulf should therefore not be available.
3. monetary policy
Little is known about the specific modalities of the asset basket, which should cover the value of Libra and remain stable. However, the coverage by classical assets such as fiat currencies suggests a direct dependence on central banks. While Bitcoin’s monetary policy is transparent and algorithmic, Libras ‘ value will depend largely on central bankers’ policy decisions. This is diametrically opposed to the big Bitcoin narrative as an apolitical currency.
4. Libra is not a good store of value
Furthermore, Bitcoin is demonstrably scarce. The cap on 21 million coins (of which an estimated four million are already lost) can be verified in source code by all network participants. Anyone who invests in BTC knows at any time what percentage of the BTC total supply is in their own possession. This makes the cryptocurrency # 1 a good value store.
In contrast, the Facebook Coin. After all, the Coin is tied to Fiat currencies, whose amount of money is deliberately increased. Possible speculative gains are not bug, but feature for Bitcoin.
5. Libra is not independent
If Libra launches successfully, Facebook would have the status of a central bank. This gives the company immense market power. If you believe in the idea of an independent and apolitical currency, you should rather use BTC.