Bitcoin (BTC) is doing particularly well in recent days. The cause is not entirely clear, but analysts think it may have something to do with the unveiling of Facebook’s own cryptocurrency . The unveiling on June 18 could push the price up even further, according to various analysts.
Facebook has been working on its own cryptocurrency for a long time. GlobalCoin or Libra, the name is not yet known, will allow users of Facebook’s ecosystem to easily send money to each other. Given the large number of users of WhatsApp, Messenger and Instagram, this crypto will be able to speed up its adoption considerably.
Spencer Bogart, partner of the blockchain capital crypto venture capital, explains in a number of tweets why he thinks this can turn out bullish for bitcoin:
Second, it catalyzes the buildout of infrastructure to support digital assets (custody, wallets, compliance, etc.) among large financial institutions and payments providers that, to-date, have taken a “wait and see” approach
— Spencer Bogart (@CremeDeLaCrypto) June 11, 2019
Facebook is pushing for digital asset acceptance and the creation of a circular economy is great because it solves that friction point. Once people own / earn digital assets, it is a relatively small step to move from, for example, USDC to BTC.
Second, it causes the expansion of infrastructure to include digital assets (custody, wallets, compliance, etc.) at major financial institutions and payment providers that have taken a wait and see approach so far.
The CEO of Circle, Jeremy Allaire, is also bullish because of the news surrounding Facebook. He expects that bitcoin can continue to rise due to the news. For example, he thinks BTC is worth more than $ 10,000 by June 21:
Crypto market rallying (again) ahead of Libra launch, marking a massive inflection point in global adoption of cryptocurrency. BTC > $10k by June 21st, marking start of Crypto Summer.
— Jeremy Allaire (@jerallaire) June 15, 2019
Facebook will probably announce more about the cryptocurrency on June 18. What is known so far is that it is a stable coin whose value is linked to “a basket of fiat-currency”. This would prevent volatility, so that the crypto could be used safely anywhere in the world. More than 12 companies including Uber, Visa and Mastercard have already promised to become validators within the network. They are expected to deposit $ 10 million for this.