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The social media giant was previously seeking support from the Venture Capital firms to invest as much as they can in its cryptocurrency project. Further, it has been disclosed that Facebook is talking about using the money as collateral for its cryptocurrency. The company has been designing the coin to keep a stable value, pegged to a basket of foreign currencies held in bank accounts. However, only time will tell if Libra will become a fortunate object to those people or not.

As the social media giant Facebook is starting its journey into the crypto universe, the integrity of the cryptocurrencies such as Bitcoin has been improved and seems like this can boost the global acceptance of the cryptocurrencies in the coming days. An analyst at RBC Capital Markets called Mark Mahaney considers Facebook's latest economic infrastructure statement as similar to Apple's introduction of iOS to developers which was happened more than a decade ago. He believes that both scenarios are almost the same in terms of scale and significance.

To understand it in a better way how Facebook's cryptocurrency project Libra can have an impact on the whole Blockchain Crypto Exchange industry, you need to take a deep dive into the roots. Let's take a look into the below areas where it can impose its effect.

Economic supervisory bodies possibly will start cryptocurrency conversation

There is supposed to be additional regulatory engagement in the digital currency exchange space, though the majority of the financial regulators are unwilling to start a discussion about these virtual currencies. They have failed to notice the advantages of the virtual currencies and have considered them as illegal assets.

The participation from huge companies like Facebook is dragging the regulators into the crypto space. All the regulators are forced to come to the conversation desk, even though they are unwilling. They cannot ignore the fact that Facebook's idea of a new global currency will create repercussion, mainly for the central banks across the world.

Binance, which is the world's biggest cryptocurrency exchange by volume, reveals their opinion about Facebook's cryptocurrency Libra that it is going to have a significant impact on global economies and financial industries. Facebook itself says that their involvement in the Libra project can be a matter of significant regulatory analysis for them and other threats which could affect their business, reputation, or financial results unfavorably.

The policymakers are now worried about the fact that the massive global reach of Facebook's Libra cryptocurrency could make it an opportunity for lots of new people into the huger crypto sector. That possibly will have some negative effects on the conventional financial systems while it might be good for the growth of the larger crypto industry.

The legitimacy of the virtual currencies

For some cryptocurrency enthusiasts, a silver lining is that they think Facebook's entry into digital currencies might potentially accelerate their widespread adoption in terms of regulation as it is one of the major tech companies. The social media giant's first step into the virtual currency industry will endorse it among the mass and give them more legitimacy over time. Therefore, it is assumed by everyone that Facebook has brought the digital currency into the mainstream, which also can help such currencies increase the legality. Once the social media giant gets the legal status, there will possibly be an extensive acceptance of these virtual currencies around the world; along with this, it is also expected that some countries might even lift their ban on those cryptocurrencies.

Positive effect on cryptocurrency and its increasing demand among the people

Libra suddenly took everyone by a storm soon after its launch. People noticed a surge in the demand for the highest-selling cryptocurrency Bitcoin after Facebook's declaration of its global crypto coin launch. It seems like the claim for Bitcoin will keep going for some time. The cause for this increased demand is said to be the social media giant's entry into the crypto universe and its 2.7 billion users who are facilitating more people to become familiar with the virtual currencies. Also, it could potentially help increase the adoption of an emerging technology called Blockchain. This new technology is a record-keeping ledger system which has not been able to gain the expected exposure yet. The adoption of the 2.7 billion Facebook users has caused something of an uproar in the regulatory circles which has ultimately led to this demand of these new concepts of cryptocurrencies and Blockchain.

Conclusion: On the final note, we can say that the launch of the social media giant's cryptocurrency dubbed as Libra possibly will accompany a new wave of crypto users and adopters. It is expected in the near future that Facebook's cryptocurrency might pull toward an entirely new foundation of crypto traders, who may not have any accounts just like the older folks used to have in traditional banks. Instead, they may take pleasure in the financial freedom presented by the whole new enthusiasm called the virtual currencies and the cryptocurrency exchange platforms . The closing statement is that the silver lining of Facebook's https://www.reddit.com/user/obitanchainblog entry is supposed to revive the interest of people across the globe in digital currencies.

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Prices of Bitcoin, ETH, XRP and LTC will be on a frantic course for a long time. Traders and investors will make and lose fortunes in record time, betting on them. In the end, some analysts appreciate, these cryptocurrencies will either die on their own or be killed by the "regime"- World wide governments and large banks defending sovereign currencies.

Take the example of Bitcoin.

The "Currency of the people" has given a great promise: to become the first true world currency, free from the control of the central banks that print money and the large banks that create faith. But to do this, Bitcoin must gain the trust of the "general public".

This means that it must be adopted as a means of exchange (people need to use bitcoin to buy services and products), as an accounting unit and as a means of safeguard value by replacing national currencies. This is not easy given the many obstacles that need to overcome Bitcoin. Such as lack of information, familiarity, stability, etc. And that makes some experts to be pessimistic about the future of Bitcoin.

Lars Seier Christensen, president of Concordium, the next generation world decentralised computer, is one of them.

"In the long run, I am pessimistic about Bitcoin, as I believe it does not have the necessary characteristics of a more long-term valuable asset and, in the end the reality will reach it " says Christensen. "But in the short term, price movements will probably be random as Bitcoin is influenced by low liquidity and unpredictable larger transactions."

Unpredictability will make it difficult for Bitcoin to be widely adopted as a means of exchange. And without widespread adoption, Bitcoin will remain a game for speculators and real fans and will eventually die alone.

But even if Bitcoin overcome all these obstacles and gain widespread adoption by the public and manage to replace the national currencies-that is, become the new currency-what happens next?

The pessimistic argue that the "regime" cannot afford to let that happen.

The reasons are enough and these include "Seigniorage". In simple terms, the profit that national governments derive from money printing. Then there is the profit for the banks that help to circulate this money and create credits.

The scheme will do whatever it takes to protect these profits from Bitcoin and any other cryptocurrency seek to replace them.

Recent congressional hearings on Libra confirms the regime's determination to protect the dollar from competing cryptocurrencies. In a rare moment of unity, Democrats and Republicans opposed in Libra and did not have many good words to say about Bitcoin.

"Cryptocurrencies that exist ONLY as currency substitutes do not have a real long-term future" - says Christensen. "They will be banned by governments who want to control money supply and taxation and in any case, cryptocurrencies have no intrinsic long-term value of importance. As a result, Bitcoin will only survive as a marginal activity."

Not everyone agrees with this grim assessment. Dave Hodgson, director and co-founder of NEM Ventures , is one of them.

"In my opinion, Bitcoin will neither die nor be killed by the regime, despite some people's efforts to the contrary", says Hodgson. "The recent decline we saw in Bitcoin is within the limits of what our analysts predicted from technical analysis". However, the timetable has been slightly distorted due to recent announcements, notably by representatives of the US government".

Corentin Denoeud, CEO and co-founder of Blockchain Studio , is another one.

"The fact that governments around the world talk about Cryptocurrencies is a sign of progress for the blockchain industry in general," says Denoeud. "While countries like India have called for a ban on digital currencies, representatives of the Central Bank of Germany have responded favourably and are promoting the view that cryptocurrencies do not pose a threat to global monetary Stability. Even China, which had previously banned ICOs and trading cryptocurrencies, called the Bitcoin "Safe Investment shelter " (through the state media organisation) and is now reportedly reinforcing its efforts to Set up her own cryptocurrency, post and Libra's announcement from Facebook".

While it is still unclear which side is right, one thing is clear: the true followers of Bitcoin (and the ETH, XRP, LTC, etc.) who believe that cryptocurrencies will eventually replace the national currencies, need a lesson in money and Banking.

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