Bitcoin (BTC) hasn’t done all too hot over the past ten days, finally floundering above $9,000 to fall to $7,500, where the crypto sits now. In spite of this bearish price action, coupled with warnings that a move even lower is around the corner, there could be one industry catalyst that drives Bitcoin higher in the coming weeks.
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This catalyst is believed to be Facebook’s cryptocurrency, dubbed “Globalcoin” or “Libra”, whose white paper is slated to be published by next week. Analysts believe that this venture from the social media heavyweight will validate the idea of digital currencies, thus pushing the adoption of BTC and its brethren.
What is Facebook’s Crypto?
For nearly a year now, the crypto space has been on its toes about Facebook’s involvement in this ecosystem. Last year, the company was revealed to have a blockchain team, led by former executives of PayPal and Instagram, including technologist David Marcus. But only until recently was the crypto community privy to Facebook Blockchain’s secrets.
As covered extensively by NewsBTC, the Silicon Valley darling has been hard at work on their own cryptocurrency, slated to be a stablecoin backed by a “basket” of fiat currencies. Globalcoin is expected to be a digital medium of exchange for Facebook’s extensive ecosystem, and will be available through physical automated tellers, exchanges, and through a purported reward system.
Not much is known more than that, however many have tried to postulate how the product, which is being worked on by 100 staffers, will affect Bitcoin and the broader crypto-economy.
What Will Drive Bitcoin Higher
While many have taken the approach of a cynic, claiming that Facebook can detract from Bitcoin’s value proposition, this may not be the case. Caitlin Long, a former executive at Morgan Stanley turned blockchain proponent, broke down her thoughts on why…