The Roundabout Way Facebook’s Libra Cryptocurrency Can Help The Bitcoin Price

As pretty much everyone has heard by now, Facebook released the white paper for their highly-anticipated “cryptocurrency” last week. Early reports appear to indicate that the project, called Libra, won’t be a true, decentralized cryptocurrency. In other words, it should not be a long term threat to the bitcoin price.

Having said that, plenty of panelists and presenters at the Bitcoin 2019 conference in San Francisco had positive things to say about Facebook’s digital currency project this week. In fact, multiple individuals pointed out that Libra may help Bitcoin by getting people talking about what makes bitcoin and other currencies valuable in the first place.

Libra Makes People Ask Questions

Unsurprisingly, Libra became a topic of conversation during the first panel discussion on day one of the Bitcoin 2019 conference.

“The halo effect as it relates to bitcoin is that people are asking: What’s the difference?,” said Abra CEO Bill Barhydt. “What’s the difference between internet-scale decentralization, which is why we’re all here, versus a permissioned model that basically says pay ten million and you can become a validator on the network?”

Barhydt went on to explain that Bitcoin is the only proven way to build an unstoppable, internet-scale decentralized financial system, and all of the “blockchain mumbo jumbo” doesn’t solve any of these sorts of problems. The Abra CEO added that he has been contacted by multiple friends outside of the Bitcoin industry who wanted him to explain the difference between Bitcoin and Libra.

The Abra app, which is built using Bitcoin smart contracts, has created one of the best use cases for the cryptocurrency, and it could have a major effect on the bitcoin price if it’s able to gain a large user base.

Keiser Report’s Max Keiser, who was moderating the panel that featured Barhydt, pointed out that CNBC’s Joe Kernen came to realize Bitcoin’s value and underlying utility live on air…

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