Before I foray into this topic of digital currency, let me apprise you of what is cryptocurrency all about.
What is cryptocurrency?
In layman terms, this crypto currency is an internet-based medium for any kind of financial transaction.
The protocols that are followed make the transactions secure. These currencies are very volatile and
undergo a lot of fluctuations.
Can we convert crypto currency to real currency?
We can cash it out but with a third party exchange like Coinbase, Kraken, Bitpanda, etc.
Right now, if you see Bitcoin is a very popular form of crypto currency. It is a decentralized peer to peer payment network. It is like you are using cash on the internet.
Both Libra and Bitcoin are crypto assets but unlike Bitcoin, Libra is a stable low inflation currency.
Facebook will launch this in the year 2020. It is less volatile compared to the rest of the crypto
currencies, so it is pegged as a stable coin. Libra would be governed by Libra Association which includes
28 members. Bitcoin is open in nature and is not governed by any central bank. They will have their own private keys and wallets and they can send it to anyone and it doesn’t require any permission. It is more secure and next to impossible to hack. Where as in Libra, as the nodes are centralized the possibility of getting hacked is more. In Bitcoin, no third party is involved so it is safe whereas in the case of Libra third party would be involved like Facebook and other parties.
I personally feel that Bitcoin is better than Facebook.
In our next video, we will explain why Warren buffet was 25 years late in investing in Amazon. ‘To get notified when we post it, join our email list