Bitcoin vs. Libra
Bitcoin:
- Launched: 2009;
- First developed by the pseudonymous Satoshi Nakamoto, then transferred to Bitcoin Foundation. Its code is now open source;
- Transactions are recorded anonymously on a digital public ledger (“blockchain”);
- Permissionless, entirely deregulated and decentralized;
- Bitcoin can be used by anyone, anywhere in the world, entirely independently of any organization or platform;
- Trades can happen on exchanges, through direct trade websites, or over the counter;
- Nothing backing Bitcoin other than what buyers are willing to pay for it;
- Difficult to regulate (as long as nodes exist somewhere in the world, Bitcoin can be transacted);
- Fixed supply – hard-capped at 21 million.
Libra:
- Launched: 2020 (anticipated);
- Developed by Facebook which has now made Libra Blockchain open source (Facebook still controls the major platforms on which Libra is used);
- Libra’s blockchain is permissioned (transactions can only be added to it by a group of trusted parties);
- Libra has a centralized structure governed by an association (Switzerland-based Libra Association) composed of large institutions (28 founding members) who have purchased their voting rights for $10 million each;
- When it is released, Libra can be used for purchases and trades on supporting websites (likely members of the Libra Association);
- Value currently unknown. Facebook has chosen a selection of traditional currencies and other assets on which to base Libra’s value;
- Easier to regulate due to centralized structure;
- Facebook and Association members can adjust Libra supply to match a quantity of other assets held in reserve.
Last Updated on July 21, 2019 by Ramin Seddiq