Libra – Zuckerberg’s dangerous cryptocurrency lie

Libra – Zuckerberg’s dangerous cryptocurrency lie


Facebook is going to launch its own cryptocurrency
with the potential of turning the social network into the largest payment service in the world. Zuckerberg promises strong privacy protections
and claims the new digital currency will be independent of the Facebook company. The new coin called Libra is planned to launch
in early 2020, and to market it, Facebook is capitalizing on the growing popularity
of blockchain cryptocurrencies. But when we compare how traditional cryptocurrencies
actually function with what Facebook proposes with Libra, the differences cast a light on
Facebook’s intention to become a global hegemon of the financial world. There is no universally accepted definition
of cryptocurrency. But the majority of them share several key
attributes that attracted many people to start using them. Traditionally, cryptocurrencies operate on
blockchains. Blockchain is a public ledger of transactions
that are chronologically organized in time-specific blocks. For example, in Bitcoin network, a new block
of transactions is created every 10 minutes. Usually these blocks are created by a process
called mining – solving computationally difficult problems and validating transactions
broadcasted by its users. Miners get rewarded with cryptocurrency for
contributing their computing power to the network. Most cryptocurrencies are traditionally completely
decentralized and free from any authority. Every user can create their wallet or as many
wallets as they like and store cryptocurrency that they can transact without any restrictions. There are no banks or governments that can
dictate how someone can and can’t use their digital money. This makes cryptocurrencies very attractive
to free speech advocates as they are extremely censorship resistant. Libra is going to have a central authority. Libra Association. The Libra Association is formed by a small
group of Founding Members. Currently there are 28 members and the Association
hopes to have 100 of them by the initial launch date. The criteria to become a member are rather
exclusive. Your business needs to have a market value
greater than $1 billion, reach at least 20 million people a year, and be ranked among
the top 100 industry leaders by lists like the Fortune 500. Charities and academic institutions are also
welcome to join the Association, but they also have to be from the worlds top 100. Among the members currently are payment gatekeepers
like Paypal, Visa or Mastercard, tech billionaires from Facebook, Spotify and Uber, cryptocurrency
services like Coinbase and Xapo or a venture capitalist Union Square Ventures. All members have equal vote, but for now,
Facebook claims leadership in the development of the platform. Most blockchains are permissionless. That means anybody can use them and run its
own full copy of the network without needing to ask for permission from anybody. Everybody can observe the whole blockchain
from the beginning to the present time. It is maintained by people constantly connecting
and updating their copies of the blockchain to the network. There are no central servers as the whole
blockchain runs as an interconnection of its copies, also called nodes, directly beaming
transaction records into the Internet. This decentralized structure makes blockchains
extremely resistant to attacks. Not all blockchains are permissionless though. Libra will start as a permissioned blockchain. Only the members of the Libra Association
will be privileged to run nodes and validate Libra transactions. No one will be allowed to mint or burn Libra
without the permission of the Association. Although Facebook promises Libra will eventually
become a permissionless blockchain, there is no indication as to when this is going
to happen specifically and how they are planning to go about it. It is worth noting that no permissioned blockchain
has ever succeeded in transitioning into a permissionless blockchain. The vast majority of blockchains are transparent. That means with the exception of a few obfuscated
blockchains, using a cryptocurrenciy requires broadcasting your entire transaction history
to the ledger. In fact, they are so transparent that some
people maintain so called “rich lists”, rankings of addresses holding the most amount
of coins. This is a huge privacy and fungibility issue. Every coin on the network can be traced back
to its very origin of creation and all future spending can also be recorded. This not only gives observers power to collect
transaction records of everyone on the blockchain, it also enables them to freeze certain addresses
or block use of particular coins to prevent them from being moved across exchanges. Libra blockchain is also going to be transparent. But the pool of validator nodes is only open
for the members of the Libra Association. This will allow a group of 100 unaccountable
organizations to observe and track all transactions on the network, with full decision authority
to freeze or blacklist certain addresses or transactions. Whatever happens on the network will not be
open for public scrutiny but will develop strictly behind closed door of billionaire-class
members of the Libra Association. However, making blockchains transparent is
not a requirement. Privacy focused cryptocurrency Monero already
obfuscates its blockchain by default and automatically conceals transaction amounts and address balances. The level of privacy by design of a blockchain
is a thus purely a choice of its developers. So if Facebook wanted to, they would make
Libra blockchain more private. But for most people, using Libra will be synchronous
with using a range of Facebook apps, like the Messenger, WhatsApp or Instagram. This deep integration will make it easy for
Facebook to identify and continuously track financial behavior of the vast majority if
not all Libra users. What gives cryptocurrencies their value is
the hard-coded cap on how many coins there can be in circulation. Demand for a scarce currency drives its value
up and down, which reflects on the volatility of most digital currencies. Some cryptocurrencies claim to be so called
stablecoins because they are backed by a fiat currency, like the US dollar, or other tangible
materials like gold. Most coins are not stablecoins because holding
up a reserve requires putting aside billions in cash that cannot be moved and maintaining
such a reserve usually predicates a central authority. Currently, no decentralized concept for holding
a distributed reserve exists and thus stablecoins are usually in direct contradiction to the
traditional concept of decentralized blockchains. Most among the cryptocurrency crowd believe
that volatility of digital money is only a temporary effect of early adoption and that
it would disappear once full adoption takes place. Libra claims to be one of those stablecoins. But it is not pegged to any particular fiat
currency. Rather, what’s propping Libra is a reserve
of low-volatility assets comprised of government securities, treasury bonds, bank deposits,
and a basket of foreign currencies, including US dollar, euro and Japanese yen. The purpose of the Libra Reserve is to hold
its value. For every Libra created, there must be an
equivalent amount of assets held in the reserve. And for each coin burnt, assets must be taken
away. Libra Association aims to form this reserve
by deposits from private investors and founding members. Just like with other banks, this reserve will
be used for further investments to earn interest. What’s more troubling is that it will remain
up to the Association to decide on the composition of the Reserve basket, where to invest the
reserve money and what risks they are willing to accept. This essentially makes Libra function like
any high street bank. Even users can deposit into the reserve by
buying Libra. But while in a traditional bank, customers
can earn interest from their deposits, the interest earned from deposits in the Libra
Reserve will only go to reward the Founding Members and for development of the platform. Where Libra Association decides to make investments
with its Reserve is going to play a major political role. Purchasing strategic government bonds or debts
can buy a lot of two way influence from the Association into the said government and vise
versa. Libra will thus become the ultimate example
of revolving door into the financial assets of hundreds of millions of people. Development of the majority of cryptocurrencies
is open source and relies on a consensus. Preferably, the computing power of the network
is distributed among so many users that no single party or a group can have too much
leverage. Preferably, all software from wallets up to
the blockchain core is open source, which gives users trust that no malicious intent
is embedded in the source code. Libra blockchain is also going to be open
source. But the development and decision-making power
is going to be withheld by the Association. There will be no other entity on the platform
to check or balance the the Association’s position. Libra Association will occupy a range of crucial
responsibilities. Collectively it will decide on the future
and the development of the blockchain protocol allowing the Association to change the rules
of the network just like Facebook changes its newsfeed or censorship algorithms. Its members will act as the only validator
nodes. They will have the power to decide who gets
to join the Association and even who gets to use the network. Payment providers Visa, Mastercard, Paypal
and Stripe will be able to prevent people from transferring their funds to Libra or
cash out their Libra coins into fiat. It is expected the same Terms of Service on
Facebook, especially the points regarding speech and conduct of its users, will apply
to the use of Libra. With traditional blockchains, only exchanges
usually enjoy the power to freeze particular addresses and users have a plethora of other
alternatives to purchase digital coins with cash, such as crypto-ATMs or peer-to-peer
exchanges. Facebook, however, will act as a blockchain,
a payment processor, a wallet holding users funds, and a social network where people conduct
their finances all in one organization. So this is how Facebook, the world’s largest
social network, is on track to potentially become the world’s largest financial network. Does Facebook really need to do this to earn
more profits? Well, they are running out of options. Cryptocurrency is a $300 billion market right
now and is becoming more and more mainstream among the financial, technological and retail
industries. But as cryptocurrencies are becoming inevitable,
governments, banks and corporations are losing control over the financial system. Just as the Internet gave us free flow of
information, blockchain is giving us free flow of finances. Monetary decentralization poses an existential
threat to collecting taxes and investment of deposited money. And with the growing awareness of the importance
of Internet privacy, advertisement-based business model is also in jeopardy. Offering a free service in exchange for personal
data is no longer enough. Some social media platforms like Nimses, Minds
or Taringa! Began rewarding their users with cryptocurrencies. During Congressional hearings, Zuckerberg
promised users would have an option to get a paid version of Facebook with less data
collection and better privacy. Instead, Facebook is now going to pay users
with Libra coins for watching ads or engaging on the platform. When Libra reaches its full adoption, that
is up to 3 billion combined users of the global Facebook empire, it will become dangerously
detrimental to the financial system. If it succeeds, governments across the world might consider the Facebook-Libra empire “too big to fail”. During times of financial meltdowns this could
mean trillions of dollars of tax payer’s money handed out in a form government bailout
such was the one during the 2008 financial crisis to the Wall Street banks. Blockchain-based digital currencies offered
an escape from the ever tightening grip of centralized control imposed by big banks and
governments. They promise financial freedom and resistance
to surveillance and censorship that limit how we can spend our money and who we choose
to support. Facebook’s Libra embodies everything original
cryptocurrencies were created to fight against. What we need is to have truly independent
and decentralized networks that give us more freedom and privacy, not less. If you too seek this freedom, stick with Bitcoin
for its value and Monero for its privacy. I am opening a Monero wallet where you can
donate if you want to support my channel so that I can produce more content like this. With Monero, you can donate completely anonymously
and privately, as its blockchain leaves no trace of your transactions. YouTube is cracking down on independent content
creators and favors large corporate media organizations instead. But with your support we keep fighting in
this information warfare. Thank you for your support and thank you for
watching.

Author:

100 thoughts on “Libra – Zuckerberg’s dangerous cryptocurrency lie”

  • Romour is Jillian Assange/wilki leaks created bitcoin after PayPal and banks blocked his access/accounts of public donations to keep wilkleaks going.

  • The currency won't be popular in 1st world (as it has no advantages over traditional currency), but it will be popular in third world, where the currencies are too volatile, weak and unreliable.

  • Jorden Belanic says:

    Wow, I never thought I would hope the banks win, though I hope the banks wipe Libra off the face of the earth.

  • This cunt shouldnt be trusted…. to start all your fb info is being saved by the nsa and cia for their own terrorists purposes… now this mark z. Wants to come up with his own crypto currency….. only imbeciles would set for this crap

  • Paul Kwiatkowski says:

    This little gay artificial AI in human guise blocked and then permanently disabled my Facebook account stole my pictures and data from me without my consent only a total brain-dead idiot would invest a penny in that

  • Vince Ronquillo says:

    If it's convenient, I'll try it somehow. Regarding my privacy, well I don't even make $500 a year. So they won't care.

  • This is the SAME M.O.. which is CONTROL OVER THE NEW MONEY !.. The only way life will improve on planet fuckfest Earth is if a monetary system is created with no human being control it. Until that point in time……..it will be the same old shit for citizens on our planet. Getting fucked !!!!!

  • Are people still using Facebook? Its become the myspace of 2019 so you gotta be crazy to invest any money into this crazy scheme. Why am i going to use something thats like bitcoin, when I can just use bitcoin…

  • We need a hackers unite moment like the movie hackers where they take down the gibson. The gibson being facebook and the libra. Where are you crash and burn, lord nikon ect!?

  • This is the worst idea. But, I wouldnt be surprised if the US government allows Libra to continue in order to hide the current massive central bank losses. You better believe Facebook is bribing whomever necessary to push the success of Libra.

  • Does anyone still believe the Zuck? He continuously lies. There will never be privacy anywhere near the Zuck’s businesses. The 3 tools of the criminal elite: 1- Hegelian dialectic 2- Semantic deception 3- Gradualism

  • Fox in the henhouse!
    There is no way this sleezy guy will allow privacy.
    If you believe him no one an save you from yourself.

  • Another funny thing is that he named his coin Libra to get back at the Winklevoss twins who made millions off biticon their cryptocurrency is named Gemini lol

  • the worst part of all of this is that I already know, the basic weaboo noobs are gonna buy RIGHT INTO this crap and be like GUYS I HAVE 5 MILLION LIBRA!1111

  • Too bad libra won’t be as cheap to use as IBM backed Lumens. As mark is in it for personal profit. Also, what’s with the fail name; a zodiac sign, really? I’m a Libra but that’s a crappy name.

  • I support this move. Obviously Facebook is going to try to become some sort of highly manipulative corporate government that will be horrible, it's Facebook. But a lot of people don't use crypto now simply because it's not mainstream enough and they don't understand it. These people would be the same people that still use Facebook. But they're going to eventually start hating Facebook like the rest of us, and then they'll already know how to use crypto, so they'll exchange their crypto into a good crypto and then everything will be fine. If only the super rich are left using Libra, then we'll have kicked them out of the market, they won't be able to spend their money on anything that us plebs produce, which is everything, so in order to buy food and stuff they'll have to use our currency, and we win. That's the good thing about crypto, if we don't like the ones available, we can just make our own. And it's value will depend on the amount of people that use it to trade. It's kinda like switching from a bank that gives shit interest rates to one that give good ones, except now people will switch to the one that gives them the most freedom, assuming people prefer freedom over security. That's the big trade off here, 100% freedom, 0% security, you're totally responsible for your own money and nobody is accountable for any mistake made. 100% security, no freedom, someone else controls all your money but if something goes wrong you can get it back from them, like normal money works. That's why I like EOS, it's the only system so far that tries to have both security and freedom and balance it. I think balance is the best life philosophy, not too much and not too little, seems to work well for most things.

  • DEAR HATED ONE, can you please do a video on the real reason Apple is forcing everyone on their 2 Factor Authentication. I believe it has more to do with giving Apple access across all your devices by suppling them with your all your encryption passwords. Not 100% sure but could you please let us know what you think. I don't trust them, google, or Facebook with any of my data. Many thanks for all your great informative videos.

  • electroneum mart_ug says:

    Why not give them a hand by ordering any of their beautifully hand-made items ? All the profits are used to cloth, feed, school and take care of the kids' health care.

    https://www.facebook.com/395961404552458/posts/467483860733545/?app=fbl

  • Reynold Salinas says:

    Hm. I think i have already subscribed to this channel and I was surprised to see that I am not. Have I been unsubcribed without my knowing?

  • Zachary Konkel says:

    Marketability of cryptocurrency is based on its lack of ties to centralized authority. It's a blatant conflict of interest that no investor would overlook. Facebook's throwing bait in an empty pond

  • Cryptocurrencies was created and controlled by the CIA. The identification number on a dollar bill, birth certificate, SS, etc…. Is all block chain. Wake up. Block chain has a back door, just like when the banks steal your dollar bills by closing your account. More lies more FAKE Slavery tool. Wake up

  • Gabb Industries says:

    This is honestly a load of crap. who wants to pay $250-500 a year for bank access. Libra is financial freedom for the people, its the Visa network minus the cost. i wish humanity could see its positives.. because all the cons of the banking industry are weighting us down.

  • Facebook is a diversion from the obvious: when you want stuff done…including coordinated legal attacks in court with massive media smearing… hire enough attorneys and it will happen. www.RisePatriot.com www.WellsFargoWitz.com .
    Regarding Facebook: an actual audit of a sample of users will show a) more than half are bogus and/or duplicated avatars. b) people's devices sign them in once installed. A lot of folks…maybe over half of actual human beings who have it don't actually use Facebook and often do not see the ads due to blocking software. Then…it appears the ads are a shell game of some sort among internet media companies with the same or worse exaggerated user base. Internet must be programmed to reflect actual identity as that is the basis of law… not massing of avatars and roboposters. BTW. I am the Supreme Court. (!)

  • Cryptos Cryptos says:

    The future of money is neither libra nor bitcoin… It is going to be federally issued currency on a distributed ledger but an inflationary currency like Fiat… the fact is Deflationary currencies are to unfair to be accepted as currency, they will remain as store of value/speculative investment or the digital equivalent of gold but future generation will not accept a deflationary currency and would create something new… It is to unfair… Also the most widely used distributed ledgers will be centralized because the loss of assets on decentralized ledgers with nobody being able to reset things is just not acceptable for the masses and ridiculous for a world of tokenized assets… Also most "blockchains" will disapear within years because of quantum computers… 😛

  • FB is deceitful, immoral, unethical and is not robust, nor reliable, nor stable and has arbitrary rules So would I trust Libra? Not in 1000 trillion life-times!

  • If you don’t really know who mr zuckerburg is he is a family Aires to the Rockefeller family which runs the federal reserve cartel Now you get it

  • Russ Lindquist says:

    0:05 "I SHALL PLACE ONE FOOT IN FRONT OF THE OTHER AS FOLLOWS, IN ORDER TO PROPEL MYSELF TOWARDS ANOTHER LOCATION — BEEP BOOP"

  • Caitlin Broza says:

    Zuckerberg is an admirer of the ancient Roman emperors who had complete control and domination of the government and people. He believes he was a Roman emperor in the past and he wants to recreate a new Empire where he is the new Emperor. He is drunk with power and his sociopathic mind will not stop until he is dead. How many sociopaths run the world now? I wish I had no conscience and was filthy rich. What a great life not to give a damn and be rewarded for it.

  • Digital transactions/money and privacy doesn't work well… I do prefer maintaining my money on a local bank in order to purchase on the Internet with strong security, rather than useless privacy… It's impossible to maintain private from big tech corps, thus I don't care about privacy at all, just security.

  • All Crypto currency is a pump and dump scheme. Watch I bet within the next year or two Bitcoin will be back at $3k again

  • Michael Johnson says:

    The issue will be when the assets collapse in value that Libra is perhaps backed by, the $ invested will now be what Facebook owes the users that ponied up for a Libra coin in exchange. I doubt that Libra will be FDIC insured and so that it will have centralized nodes they will be easily attacked and thus $ gone. No thanks.

  • Brony Clopper says:

    One way or another, Facebook earned its 2 billion users. Of course they will cash in on that by making crypto that only Facebook controls

  • Looks like the One World Currency is being ushered in, remember this Bible verse.

    "And he causes all, the small and the great, and the rich and the poor, and the free men and the slaves, to be given a mark on their right hand or on their forehead, and he provides that no one will be able to buy or to sell, except the one who has the mark, either the name of the beast or the number of his name."

  • Blake Everett says:

    My initial thought was no one is dumb enough to use this. Then I saw a woman screaming at the kid behind the customer service desk at my local grocery store. She complained that her hamburger helper didn’t have any beef in it. Then I woke up and remembered amazon ran all the grocery stores out of business.

  • Yeah let the guy who calls users of his platform dumb f**k**s, censors or bans anyone who doesnt have the same opinion as his and sanction violence to them, hold your financial capability on his hands.

  • Fawful The Gamer says:

    I deleted my google on my phone and got duckduckgo cuz I like privacy, next, my computer, next google spying on you should be illegal

  • Retrogamer Dell says:

    It's a trojan horse. He's planning on taking over the world and be the anti christ. I've watched 1984. lol. Then 1 world currency that you can only spend if you take the mark.

  • L’inconnu du bataillon says:

    Libra is basically a private house party of friends that won’t invite you cuz you are not cool , but at the end of it gives you the rest of the booze and asks you to pay the entire thing

  • L’inconnu du bataillon says:

    Libra is basically a private house party of friends that won’t invite you cuz you are not cool , but at the end of it gives you the rest of the booze and asks you to pay the entire thing

  • Hey the hated one, have you heard about this? https://nypost.com/2019/07/14/swedish-people-are-getting-chip-implants-to-replace-cash-credit-cards/

  • a bunch of moths will fly to the fire, get burned, and exemplify themselves to show the greatness of bitcoin and monero

  • cryptocurrency =decentralized.
    while "libra"=centralized by the authority of top billionaires associated with facebook.
    you choose.

  • Just letting you know im done. Im done with all this BS. I am
    unsubscribe because there is no point in hearing or knowing the truth
    when there is NO JUSTICE in America any longer.
    With comey and
    killary getting off Im just done with everything. They will get new
    million dollar books deals that we will all pay for etc. until there is
    an actual civil war and we can overthrough and kill all these traitors
    im done. signing off now

  • Just letting you know im done. Im done with all this BS. I am
    unsubscribe because there is no point in hearing or knowing the truth
    when there is NO JUSTICE in America any longer.
    With comey and
    killary getting off Im just done with everything. They will get new
    million dollar books deals that we will all pay for etc. until there is
    an actual civil war and we can overthrough and kill all these traitors
    im done. signing off now

  • they are building up for something big.. maybe this Libra coin is the supposed backup currency fpr the coming crash..

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