There are various cryptocurrencies available out there, but many people are concerned about finding the differences between Bitcoin and Facebook Libra. Since 2019, Libra is available to purchase, but many people are still confused about whether Libra is better than Bitcoin. Here, we can say Libra is not like Bitcoin at all though both use blockchain technology. In this article, we will discuss the differences between Facebook Libra and Bitcoin so that you can choose one. But before going to the comparison further, first, we should know about these two cryptocurrencies.
What is Bitcoin?
Bitcoin is a digital currency that is popular throughout the world presently. In 2009, it was created by a mysterious developer named Satoshi Nakamoto. Though his true identity is not yet verified. The lower transaction fees are one of the best features of Bitcoin. Bitcoin doesn’t use any middleman for the transaction procedure. Presently there are several algorithm based robots used for automated buying and selling of Bitcoin, and Bitcoin Era is one of them. It ensures a vast profit for the investors. As there is no physical Bitcoin available globally, the Bitcoin transactions are verified by the massive computing power.
What is Facebook Libra?
Libra, on the other hand, is a new digital currency that uses cryptography to protect the information and verify transactions. People who use WhatsApp, Facebook, and Messenger can use Libra through a digital wallet. It is considered as an alternative to Bitcoin. But you should know the differences between these cryptocurrencies to realize whether Libra is as worthy as Bitcoin or not.
Differences Between Bitcoin and Facebook Libra
In 2008, Bitcoin’s white paper was originally released, and in 2009, it was mined. Presently, you can purchase, sell, and trade Bitcoin on several exchanges and millions of individuals across the world.
In 2019, Libra cryptocurrency was released by Facebook. Presently, it is available for purchasing, selling, and trading.
First, Bitcoin was developed by Satoshi Nakamoto, and then it was handed off to the Bitcoin Foundation. Bitcoin’s code is open-source with several independent developers. These developers work on the issues regarding scalability, privacy, and privacy.
Libra, on the other hand, was developed by Facebook. It works with the Libra Blockchain technology. It is also an open-source across the world. Facebook asserts that many developers will enlarge Libra’s capabilities in the coming years. It means Facebook will continue to develop Libra cryptocurrency until it controls the major platforms.
Anyone across the world can use Bitcoin as it is independent of any platform or organization. For example, if two people have Bitcoin in their respective wallets, they can send it to one another with impunity until someone is there to validate the transaction through mining. Trades can be made on exchanges via direct trade websites.
Facebook, on the other hand, has ultimate control over the Libra cryptocurrency. Thus Facebook ensures more legitimate uses of Libra.
Though most of us think that Bitcoin is an anonymous, private cryptocurrency, it isn’t. Instead, it is semi-anonymous, which means if someone owns an unaffiliated account or wallet, the transactions can be traced on the public blockchain. Therefore who are looking for extra anonymity and privacy, use tumblers for distracting their activity.
Though Libra is an unknown in this field. Facebook has declared that it will have its assistant, Calibra, to manage Libra for Facebook users. It also suggests that Calibra will not share its users’ information. In the future, there will be a Friend Finder function with Libra that will raise some privacy concerns.
Bitcoin is quite challenging to regulate. Governments and companies could make the in and off-ramps for Bitcoin investment and divestment. But as nodes exist, there are always chances for Bitcoin to get transacted. Bitcoin can be traded for goods, cash, services, and commodities that are not regulated by centralized banking organizations. So, it will be nearly impossible to stop Bitcoin use.
Libra, on the other hand, causes a considerable stir in the global governments since its availability. Though there is no regulation placed yet and governments are eager to investigate it and to regulate it in the future. There are also some possibilities of taxation attempts on Libra. As Libra is a centralized cryptocurrency, it is viable to regulate.
According to the above discussion, overall, we can say that Bitcoin and Libra are utterly different though both of these systems use Blockchain technology. The foundation for Libra is the potential to make success in the shortcomings and inefficiencies of the banking sectors. However, Libra can’t offer so many advantages as Bitcoin does.