July 5, 2020

BlogCoinz

Cryptocurrency and Technology

Censorship on the Blockchain: A Libra Story

Libra, Facebook’s cryptocurrency, is slated to be a big player in the crypto market. From sending friends money, making in-game purchases, or being able to pay for the millions of apps that use Facebook as a single sign-on source already you can start to see how this currency already has a major use case.

There is a real chance that Libra becomes a top coin. It may not surpass Bitcoin but could be a major player. What happens if the millions of users on Facebook start relying heavily on this currency to pay for services and goods through Facebook? What happens to people censored by Facebook. Let’s tell a short story to paint a picture.

The year is 2100 and the two world currencies are Bitcoin and Libra. Libra is your everyday currency and Bitcoin is your store of value. Shops don’t take Bitcoin because of high fees, only high dollar items are used with Bitcoin. Old as fuck Milo Y tries to buy groceries but the USD is no longer accepted and Facebook has banned him. Milo can’t access his wallet and has to beg for scraps on the street. He begs Facebook to unfreeze his wallet but the Zuck isn’t buying it and keeps his account frozen due to “policy.” Milo starves and dies because Facebook has censored him.

Scary scenario. Currently, Facebook can impose any ban they like as it is their platform and they can allow whomever they like to use their platform. If they continue with Libra however, they should not be allowed to ban people and limit them to use of currency. Bitcoin was created for the purpose of complete control over your money. Libra has the power to limit your control, which makes them no better than a bank.

Short Libra, Short Banks, Long Bitcoin!