Libra was a cryptocurrency created by Facebook, designed to be a simple, low-cost stablecoin to be used around the world. The digital currency was renamed Diem in 2020 and in 2022, it settled in 2022. Let’s take a closer look at what Libra stands for, how it works, and what is the Libra coin price prediction. In addition, to make better investment decisions, we invite you to learn what affects the price of Libra, what its main characteristics are, and many more. Then let’s get started!
What is Libra?
Libra was a cryptocurrency created by Facebook, designed to be a simple, low-cost stablecoin to be used around the world. The digital currency was renamed Diem in 2020, and 2022 settled in 2022. It will be the first payment system for Internet users.
However, Libra, which was introduced in mid-June ahead of an effective 2020 launch, is in fact an animal apart. First of all, because of its creators, Facebook in mind, its operation and its ambition to create an “Internet of money”. Since the announcement of the project in June 2019, there has been a lot of talk about Libra.
The diem (ex-libra) is the name given to the future cryptocurrency started by Facebook. “Libra’s mission is to develop a simple global currency and financial infrastructure that serves billions of people,” summarizes the project’s white paper, which was revealed on June 18, 2019.
Libra, before it was renamed, was a cryptocurrency indexed to a basket of stable fiat currencies. It is, therefore, a stable currency.
For example, if the value of BTC is $10,000 and you want to exchange 1 BTC for LBA, you will get 10,000 lLBA units. In case BTC falls to $5,000, you still get $10,000 LBA. In addition to being stable, Facebook crypto is exchanged instantly as there is no need to use the banking network. This stablecoin will be backed by the dollar, while initially there would be several diems: a diemUSD, a diemEUR, a diemGBP and a diemSGD.
Pound Price Prediction
The current price of Libra Credit is 0.0519 USD today. The price of the Libra Credit can rise from USD 0.0519 to USD 0.132 in a year. Long-term earning potential is +154.01% in one year. The future price of the Libra Credit (LBA) will be USD 0.439.
Analyzing Libra against other trends and technology developments is one way to forecast where the price may go in the future.
If you follow the growth of Facebook, the prediction for 2026 would be $0.602949, but if you follow the growth of the Internet, the forecast is $0.069168. Its current value is below the 50-day SMA and it has been classified as SELL for the last 250 days.
Currently, the classic pivot point is at $0.024900, and the support and resistance levels are the same at $0.024900. The Libra price prediction for 2023 is $0.0063 for the average price and $0.0076 for the highest price.
What affects the price of Libra?
The value of Libra is determined by the balance of supply and demand, which can be affected by a number of factors.
This can include things like block reward changes, protocol updates, regulations, and adoption of Libra by businesses and governments. Libra’s market capitalization is also subject to sudden changes, and traders often try to keep an eye on “whales”—individuals or entities that control a large number of LBAs—as they can have a large impact on the market.
Given the size of the Libra market compared to more traditional markets, the actions of a single whale can have a significant effect.
Facebook Libra Coin Price Prediction – Should You Invest in Libra?
Investing in Libra Credit is an excellent long-term decision, as its low market capitalization makes it vulnerable to manipulation. If you’re looking for a virtual currency with the potential for big gains, Libra Credit is a viable option: Libra Credit is currently priced at US$0.0519, and if you invested $100 today, you’d get 1927.629 LBA. According to forecasts, the Libra Credit price is expected to increase significantly over the next 5 years, potentially reaching $845.86 by 2028, an increase of 745.86%.
How does Libra work?
Like its competitor Bitcoin, Libra will operate via a blockchain system, a decentralized and tamper-proof ledger. This blockchain will be controlled by only ten players, unlike Bitcoin which is based on a public blockchain.
Therefore, it will be possible to buy Libra online with all kinds of currencies, but also at various physical points of sale. The Internet user can then exchange their books for goods or services from organizations that accept this virtual currency.
Over time, we hope to add other services for individuals and businesses, such as paying bills by pressing a button, paying for coffee by scanning a code, or taking public transportation without cash or a ticket. Transport in oneself.
Internet users can use their libraries through the Calibra app, a new subsidiary of Facebook. In fact, in parallel with Libra, Facebook has created Calibra, which will offer financial services and, in particular, an electronic wallet that is managed through a mobile application. An application that will more or less resemble Google Pay and Apple Pay.
Eventually, Mark Zuckerberg wants to be able to integrate Libra payments directly into Messenger or WhatsApp, two of his flagship apps.
Libra LBA Features
A virtual currency managed by a consortium of large companies
The Libra association manages Facebook’s cryptocurrency system
Facebook has surrounded itself with large international companies to launch Libra. A nonprofit association called the Libra LBA was created to manage the cryptocurrency, made up of 28 founding members including Uber, PayPal, MasterCard, and Spotify.
In addition, this virtual currency will be secured by a currency reserve based on solid currencies, such as the dollar and the euro or even the yen, with low volatility. This is to prevent Libra from becoming a speculative commodity like Bitcoin.
“For a new currency to inspire confidence and be adopted, it had to ensure that the issued notes could be exchanged for real assets, such as gold. Although Libra is not backed by gold, it will be exchangeable for a collection of low-volatility assets, as the giant Facebook’s press release recalls.
When was Diem launched?
The diem launched in January 2022, at the same time as Facebook’s wallet, Calibra. Its launch was subject to approval by the US Department of Finance’s Financial Crimes Enforcement Network, which will need to validate its accreditation as a money services business. Originally, the association behind this virtual currency had planned a launch in early 2020.
Difference Between Libra and Bitcoin
The most striking difference is in the organization and governance of the Libra blockchain: unlike Bitcoin, for example, the Libra blockchain is not open to everyone. You have to show your credentials and become a Libra member to access it.
However, anyone can become a user of the new currency as long as they prove their identity when opening the account. Above all, where the price of Bitcoin has often fluctuated wildly since its launch, Libra wants to be a stablecoin, a currency of use rather than an investment.
The Libra Blockchain
Libra crypto is created using the so-called “permission” blockchain. It means that access to the protocol must be validated.
On the other hand, the public BTC blockchain is open to everyone. I Facebook wants to make blockchain permissionless for the long term, but that this is not feasible as “there is currently no proven solution that can deliver the scale, stability, and security needed to support billions of people.” and worldwide transactions within a network without permission, as we were able to read in the white paper.
Behind this project there is a whole team created in May 2018, headed by the Frenchman David Marcus, former vice president of Messenger and former president of PayPal (2012-2014).
This expert in the payment sector was part of the board of directors of the American cryptocurrency exchange platform Coinbase. He left this role for reasons of conflict of interest. According to our information, corroborated by CNBC, there are, to date, 100 people working on the project.
What is the Libra Association – Diem Association
To manage diets, Facebook has opted for a partnership. A way to show that the American giant will not have full control of the crypto since he is a member among others. The social network has signed alliances with companies and associations that have each invested at least $10 million in the project.
Each participant can sit on the foundation that Facebook has created in Switzerland to manage cryptocurrencies.
“Important policy decisions or technical elections require obtaining two-thirds of the votes, or the absolute majority of the network required by the consensus protocol,” the white paper states. In April 2020, the Libra association applied for a payment system license in Switzerland, which it finally obtained in May 2021.
It opted to move its headquarters to the United States and signed a partnership with Silvergate Bank, a bank specializing in crypto assets, to issue its stablecoin and manage its reserve.
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