There are some big hitters backing Facebooks Libra coin, including Naspers, Paypal, VISA and Mastercard. This is an amazing coup for Facebook, with 30 big names backing the crypto currency so far. There are hopes that 100 of the Worlds biggest Internet Giants will become a part of Libra Coin.
The Currency will be managed by these companies through the Libra association, where each member will have an equal say in the management of the currency.
Most big companies are investigating crypto currencies, blockchain and the usage and effect on their businesses right now, so it is not surprising, when we consider the number of options available in the crypto space.
We are not aware of any retirement/pension funds that invest in crypto related companies/indexes, but with the investment by these large companies, it makes it possible to lower the risk and still invest in crypto through investing in these companies.
If you have the stomach for the incredible voliatility in the crypto markets be sure to risk money you can afford to lose. Crypto markets have been seen to move massively within hours, sometimes as much as 10-20% in a day and at the extremes like in 2017, from $1000 to $20 000 in a single year.
In the last 3 months we have seen bitcoin move from approx $3500 to well over $9000. Personally I have liquidated my coins and torture myself watching it 5 or 6 times a day.
Interestingly, the companies that have not joined in on Libra coin are the banks with existing payment processing businesses that they make a lot of money from. Perhaps it is just the unregulated environment of crypto currencies that makes the banks nervous. IMO, the fees and commisions in crypto payment processing being so much lower than conventional payment processing, is what is keeping them away.
We will be watching this space carefully as the Libra coin investors and management start making policy decisions on the direction of the coin in the future. Is this the crypto currency that will stick? Your guess is as good as mine but I do like it from the perspective that there will be some regulation to avoid the spread of criminal activity using crypto currencies.
One thing is for sure… There will be a crypto currency or a number of crypto currencies in the furture, it is up to you to take a position on which one is more likely to stick.
