Bitcoin Fans Spy Opportunity in Facebook Libra Launch

By WSJ City

Bitcoin's backers are adamant that Facebook coming digital currency, Libra, won't spell the demise of other cryptocurrencies. To the contrary, many believe the launch of Libra spells opportunity.

KEY FACTS

--- Libra's corporate backers are a contrast with bitcoin, which was created by an anonymous coder.

--- That is one of the reasons supporters of other cryptocurrencies believe Libra is likely to be good for them.

--- Many think the initiative will raise awareness about a concept that is still hazy for a lot of people.

--- Others say Facebook will struggle to overcome privacy concerns that are at the heart of bitcoin's appeal.

--- After reports about Libra Tuesday morning, bitcoin was trading at around $9,190, up about 12% since Thursday.

Why This Matters

It is possible bitcoin's backers are being naive. Facebook will cast a large shadow over the sector. The total market value of the more than 2,000 cryptocurrencies trading is about $286bn, according to CoinMarketCap. Facebook's market capitalisation is $539bn. Bitcoin versus Libra could be a fight over privacy too. Bitcoin doesn't require any identification to use it. Facebook, meanwhile, collects a tremendous amount of information about its users, and has a chequered history of protecting it.

A fuller story is available on WSJ.com

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(END) Dow Jones Newswires

June 18, 2019 10:04 ET (14:04 GMT)

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