Facebook Libra Coin: The Good, The Bad, & The Ugly

Hey Wallace show everybody your beautiful face: how's? It going a lot us look at it through the camera. Look sorry about that. I'm still trying to get used to these gimbals. What's going on everybody? It's, a pleasure to see you guys.

I wanted to make a video today to talk with you guys about Facebook cuz. They have just published the white paper for Libra for project Libra, their cryptocurrency, that's expected to launch in the first half of 2020, and now we've got a bit more as far as details of what's.

Going on, if I'm speaking weird, I have to apologize. I strained the crap out of myself at the gym. I was doing sit-ups with bad form on one of those machines, those kerning machines, and I must have like strained the crap out of my throat and neck.

I know, and I compared ly - speak without pain. I can barely see I can't even swallow without pain. I breathing just painful, but I just wanted to get out some thoughts and if I speak in a lower voice, it doesn't hurt as much so anyway.

So I rent I went, I read through the entire white paper, which was actually quite sure you should check it out yourselves. So here we have some details so project Libra Facebook's; coin right it's, going to involve partnerships with companies like we had already talked about it's.

Gon na have companies like uber lyft on board, going to have obviously Facebook it's going to have it has investors from coinbase. Interestingly, coinbase is also invested in this project, so which kind of sucks, but I guess they have invested in some.

The less been better for decentralization movement companies in the past well, yeah coin base is on board. I think there's. Some other major wallet providers - Visa, MasterCard - that's insane man that's.

I guess troublesome for the banks, but anyway this cryptocurrency is going to be headed up by a new foundation that's, gonna be based in Switzerland. In Geneva Switzerland, it's. Gon na have over a hundred members on board, with each probably paid ten million dollars to operate one of the few nodes they're, going to be validating transactions for this network.

So we now know that they are going to have a reserve which is going to be backing their coin. It doesn't, look like it's. Gon na be a true, stable point relative to other currencies, because it's. Gon na be based on a basket of different global currencies and government securities or like government bonds.

It seems, and they did say that the value of the token can change from currency to currency. So I don't think it's truly stable, but they said because it's, a reserve, its minted. When tokens are allocated with what money is allocated into the reserve, I suppose banks that they're.

Keeping the money in and only burn when they're taken out minted when they're put in and so on. So it should have. A relatively stable value is what they're, expecting it's. Gon na be, you know something that can be used internationally.

It's, gonna, be something that has low minimal negligible fees that are better than the ones charged by banks, or maybe even some other payment providers like PayPal yeah, but it & # 39. S got the whole community today, just up in arms.

About this whole thing I mean everyone is now saying: okay, you know it used to be like aetherium versus us. It used to be coin bit coin cat. Now it's like Bitcoin cash, Bitcoin, sv, Bitcoin, theorem AOS, like coin ripple, everyone against Facebook coin and talking about some of the strengths of of what they really have in this movement there.

So they're gonna basically launch this thing. They're, starting to test that like right now, the test net just released. They have a brand new language called move which is going to have smart contracts, enabled for it as well.

So developers will already begin to test and build products, decentralize Apple decentralized, applications to run on this new blockchain, the Libre blockchain that they are going to be launching. Also there is, I forgot to mention, going to be a return generated, because if you keep money in a bank, if you keep reserve assets in a bank, then until we move into negative interest rates anyway, there is interest like in Japan.

They actually have negative interest rates, but I don't know if they're gonna be on board with this one, but anyway there's. Gon na be interest generated on these funds and that's. Gon na be paid back to secondary token holders, so people who invested in nodes - you knows ten million dollars to invest in nodes.

Those big companies like Visa and MasterCard are going to be getting interest from the blockchain from the assets that are stored in banks. Interest is paid on that that's, going to be shared with these secondary token holders.

The token that we won't be able to see the tokens that are gonna be held by these federated companies that will be validating transactions. These permissioned companies who so so it's. Actually, people are saying that the Facebook blockchain is much closer to the EOS blockchain, in that it has fewer nodes faster throughput, a lower fees, smart contracts, so people are saying it's.

More of a threat to Els than to aetherium, which is more immutable, which has more nodes which is well you know, EOS, is also open. One of those things is that, while this is being pitched as an open blockchain, you can build whatever you want.

It's, not censorship, resistant when it comes to Facebook. That is not to confuse that with us, because realistically they could shut you down, hey, they could stop your addresses. They could stop your wallets.

It's, not truly anonymous. It's closer to Bitcoin, where it's pseudonymous as they say, meaning they'll, be able to find out who you are if they want to, and you can be blacklisted, especially with the amount of information that a Company, like Facebook, has on pretty much everybody, even if you do not have a Facebook account.

I'm, not sure. If you're aware Facebook has information about you. Facebook has information about pretty much everyone through people who have registered with their phone numbers on Facebook. Facebook goes into these people's, phones pulls the contacts, pulls the phone numbers, pulls information posted about other people who might not even have facebook accounts and has that data.

So they have data on most people around the world. They have a huge user base, so one of the big things that could help Facebook coin relative to these other, more decentralized options that we've known, true crypto currencies is that they have a huge they have.

They have a lot of money for marketing and they have a lot of reach with their marketing, so they will likely try to get a lot of users, but I actually would say that's, a really good thing for cryptocurrency, because it's not truly a cryptocurrency, it's, not something I guess in a way it is outside of the banks, but it's, not because the reserve is held in banks.

So if you're looking for something to protect, you from you know what some expect to be a global economic collapse, a credit shrinking or freeze big issues that lie with the derivatives. This coin is not going to protect you.

It's, not the reason that Bitcoin was built. This is not a hedge against that this is just a way for Facebook to create a platform of payments to rival the banks to rival people having to swipe their debit cards.

They do hope to open it up completely decentralized within the next five years. They try well whatever. That means right. They're, trying to open it up to more nodes, as time goes on and so forth, and just let it go so.

The fact that they have over 100 members are based in Switzerland. It's, not pegged to just one company. It's, not just Facebook. Behind this means that it's, less likely to be censored by one specific government around the world, and it becomes more difficult since they are you using a Byzantine, fault-tolerant blockchain that they are building.

But it is completely federated, meaning that it is quite centralized you have to be in the cool Club. You have to have paid SEC million dollars on a note, so you go to validate transactions, so it's. Just not gonna take off to the degree that a blockchain would if anybody could access it and validate the network and generate or return for doing so it's.

Never it's. Not I don't. I don't think it can be as secure. However, it does have the backing of some of the biggest financial companies and fin tech companies and technology companies around the world, but I have to wonder now that Facebook is doing this.

One notable member that's, not on the list of nodes, is Google. Another one is Apple. You have some of the biggest companies around the world that are going to try to launch competitors to this one of the biggest knocks against project.

Libra is why didn't. You guys build this on aetherium. Why didn't you just make this open. This might seem good that they are more of a vetted platform. If you're running a decentralized application, you're, a big company.

Already you want to build you centralized application, it might make sense to build it on Facebook's, project Libre because you know that they are going to be censoring individuals who are blacklisted.

They're, going to be sank, blacklisting companies that are sanctioned by different lists governments, don't, want money sent to terrorist organizations or to so we ran and things like that. Even though most people in Iran, I would argue, are good right, money can't be sent to Iran.

This might look good to daps that don & # 39. T want to have to worry that that's, another step. They have to take care of surveilling the transactions to make sure there's not sent there so that the company doesn't go shut down.

So maybe I'll build on Facebook instead of on etherium or whatever smart contract black chain. You think I'm gonna use a theorem as it as he as the smart contract platform for a contrast here, one that is open relative to one that is closed.

Being Facebook's project Libre, but if you want something that cannot be stopped, you know this promise of it through me of something that is immutable, something that allows anyone to build a DAP and have anyone access that DAP and use it.

You know more anonymously than I think it's. Still. Some of these smart contract block chains like aetherium are gonna prove a much better web 3 web 3.0 case than Facebook would at this point, so I don't know that we're gonna see where this goes, but I Think in the next five years you're gonna have I mean, even just in the next three years, you're.

Definitely gonna have a theorem serenity. If all goes well right. We're gonna have a theorem 2.0, which hopes to be fast will be open, will be decentralized, allows people running notes, generate returns, staking you don't even need complicated hardware rather than seeding every we worked for in the past.

Ten years and giving it up for Facebook, in fact, I had a Twitter post yesterday talking about how little I use Facebook these days and this isn't, just because I was banned off of Facebook without any explanation, and my group was to leave It with over a hundred thousand people in it and all of our admins were banned, including our personal accounts, and we did not chill.

We deleted referral link spam tokens that were obviously in affairs, and yet we got had our Facebook committee. It was even before that. I have stopped using Facebook as much as I become aware as awareness that they are leaking.

My data has come more to the front of my brain of my mind. I'm aware that there are looking, through my contacts that I'm, aware that they promised not to sell those a picture that thumbs are a video Martin Zuckerberg in an interview I'm, not sure what, when or Where, but it was a while ago before Facebook had really gotten to where it's at right now, and it was like do you, but would you guys own the pictures and the data and information and videos that are put on Facebook and then Mark supers, like the users, will always own the images and the videos and the data, and then she asks the interviewer.

But would you ever sell that data and he pretty much repeats what he said? No, he adds on whatever whoever users want to share that. You know maybe a few individuals, maybe their family members want to see the pictures.

So there's, the only people they're gonna be served that users data who those users want to share with, which obviously has not been the case. So I would be very careful doing all my finances through Facebook, Craig.

It's, no better than going through banks. In my opinion, it's still having some individuals or benefiting at the behest of everyone else, something that I have fought against something that really brought me to this movement that had me making videos bad.

This is the reason I'm here today. Talking to you guys it's completely the antithesis of that, while attacking on the fancy blockchain thing to it. So we have three years well actually, five years to really educate people here, and I think Facebook well with that because they're gonna add you keep people on how to get a wallet right, and hopefully we will have things like atomic swaps Between between Facebook's, cryptocurrency and other cryptocurrencies, creating on ramps or really yeah, I don't, know: traffic flows between Facebook's coin and other crypto currencies that are better.

But we need to be you guys who are here now before we have. It will likely be an onslaught of new people who are getting shield as soon as they log on to Facebook by Facebook coin use Facebook coin low fees, you get discounts for using Facebook coin, with uber with lyft all the promotional slots of things that are gon Na educate people on arrive and make them want to build a blockchain wallet and start picking up this thing, instead of you know linking their PayPal account, which is got ta, be fate.

Well, maybe not their PayPal account cuz. That's. Gon na be one of the Federated members, but either way my point is you're gonna? Have a lot of people getting started with this stuff, and hopefully they & # 39.

Ll have easy ways, especially these things, trade, on exchanges to get on-boarded into the crypto currencies. We know and love today, but you guys play a pivotal role as the educated as people who've been here before them, and you need to open your mouths.

You need to talk about these things. You have a responsibility to your mankind. I fully believe that we are now seeing that rise of equine from mr. robot or evil corporation, whatever you want to call it.

This is a conglomerate that is not that it is gonna be more Marxist. That is going to be more totalitarian in ways and then perhaps I think we've, seen in the past versus systems like aetherium and Bitcoin that do not have one central control that give us that cypherpunk vision of using money like we look at Language, which should be free, where I also shared on Twitter yesterday, thanks to Tony.

Thank you Tony for sharing that with me, the the manifesto cypherpunks manifesto. Look through that and think about how we need to look at money, especially now that it's online, as as a form of language and language should be free.

It should be open. Shouldn't be sensible because that's, where we started leading into troubles when you censor one side of a transaction. When someone has eyes on everything that's happening and can manipulate information and money to give power to a select few and that select few, we know as the board members but, like I said man, I think there is a trend away from Facebook.

As people become aware, as I had, I'm using Twitter more because it's better than Facebook, it's, not the best. I use reddit it's, not the best, but it's. Better than the other things we've learned about Facebook through the last couple of years.

It's insane. I would not trust them with my money. Certainly, I will not be using them for my payments, but I need you guys to join me on this one, and I I know it's already. We've already had a coalition of people talking about how we need to do this right, but this is before we have all the newbies coming on board, who are going to be loud.

This is before possibly we have BOTS that are funded by Facebook that are out there saying that cryptocurrencies that that Facebook's cryptocurrency is just like other cryptocurrencies, but better it's better than Bitcoin.

It's better than aetherium it & # 39. S, got a better programming language that's, easy it's faster. It's already in use it's got a reserve, so it's more stable. Before we have all this propaganda, you guys have to realize that you are bastions of truth out here and you need to open your mouths over the next few years that are gonna be coming up, because this is when this conversation comes to a head.

I believe, in the long run, evolution will mean that the open blockchains went out but um. If you are believer in survival of the fittest and that we each play a role in the future of our species, meaning humanity, then I think you needs to be part of the conversation here and pushing and edging it in the direction you would like to see It, which is somewhat adversarial, which is against Facebook and for decentralized cryptocurrency.

If you don't know what's decentralization. Yet now is the time to educate yourselves, because you are important. Don't just see this as speculation, and it means to get rich. This is a means of in the next few years of either freedom or power going to individuals at the behest of everyone else.

That's. Just some of my thoughts, I have to get them out there. Today, Hey didn't even notice a lot of the pain, because I was so into it with you guys, but I want to know your thoughts down below about this coin.

Yeah. I'll leave it at that. I'll catch. You guys tomorrow, take care of much love and stay cryptic, crypto out peace.