Recent years have been nothing less than a roller coaster ride in the business world, with Bitcoin becoming the center of global attention after its price reached its highest level, attracting millions of investors targeted at it. Then, within a few months, it saw an unexpected drop in its price. As soon as we finished with Bitcoin, we saw a social media giant, Facebook, facing a lawsuit over the handling of confidential information allegedly released by the company to run the 2016 US Presidential Election.

The excitement continues, as the crypto-world will welcome a new guest. Yes, this is the same social media giant that has been plagued by controversy recently. Facebook has taken the first step within the crypto-world by launching its digital currency called ‘Libra’ in front of the world and announced that it will be launched globally by 2020.

What is Libra Crypto-Currency?

Libra Crypto-Currency will allow its users to gain access to the services they need, without additional costs or delays. Libra will help Facebook users by giving them the opportunity to quickly buy and send their money or funds through various Facebook channels such as Whatsapp, Messenger, etc. and other potential facebook partners such as Uber, Mastercard, Visa, etc.

If you have never invested in crypto before, we recommend that you speak to a crypto expert and professional crypto auditor to get an overview of trends and returns before investing appropriately.

Why did Facebook introduce this crypto?

Facebook believes that Libra is the next big thing, and because of this, that they will be able to provide the necessary access to services and products through their platforms to everyone and everyone. They emphasize that open, fast, and affordable cash flow will generate more economic activity that will provide more opportunities for people around the world.

People need to be honest with the financial system of which they are a part, Facebook believes that a distributed and shared global financial management system will help people regain confidence in the system.

They also believe they can make a significant contribution to the global economy with the expected increase of 95 million jobs and an additional $ 3.7 trillion in the economies of developing countries while increasing the capacity of people to earn and ultimately reduce poverty.

How does this work?

Libra promises fast and secure transactions anytime and anywhere. All you need to do is connect to the internet on your smartphone and get access to your digital wallet (1 Libra = 1 Dollar) via Facebook’s Messenger, WhatsApp or its official ‘Libra’ program. Once you have access to your digital wallet, you will be able to easily buy, trade and send/earn money instantly in any part of the world at any time. Its use is not limited to restrictions within the Facebook domain but its access far exceeds that of the Facebook ecosystem, which is in everyday life, whether you buy a cup of coffee or go shopping.

Libra is built on ‘Libra Blockchain’ ‘approved’ which means that its book can only be followed by trusted bodies. It is also backed by a solid bank that ensures the stability of its value, unlike most other cryptocurrencies. The influx of this new financial infrastructure will enhance the naming of products and services in the market that will help people use Libra in their daily lives.

If you are someone who likes to invest in cryptocurrencies and build an investment portfolio it is already advisable to have a very knowledgeable crypto-accountant on board that can help you gain a better understanding of compliance with cryptocurrency investment tax problems. A good Charted Professional Accountant will guide you on how to invest in this fund while maintaining tax efficiency.

Why is this new infrastructure important?

About 31% of the world’s population has no banks, which means that about 1.7 billion people are denied access to credit cards and other financial opportunities that help people grow their businesses and do global things. And they have to carry higher costs to get access to money. Data shows that US Businesses lose about $ 40 Billion in cash each year due to theft while costing 7% to send money across the border in transit payments that take up to 5-7 business days to reach their accounts.

People with limited purchasing power have to pay extra to get financial help, their ATM deductions, cash transfers, and interest on overdrafts. Libra’s financial infrastructure aims to take billions of people under its dependence, thus empowering them by providing more opportunities for growth. This infrastructure will help eliminate the old problems that people face when transferring or receiving money within the existing financial system.

What does this crypto mean for Bitcoin?

One hundred investments in Bitcoin back in 2008, led to more than a million dollars in 2016-17 when the value of Bitcoin was very high. Bitcoin became very popular for some time and attracted many investors towards it, its insecurity led to its rise and eventually collapsed.

Price fluctuations were observed at an unexpected rate. Bitcoin’s extremely high volatility was the result of its weak placement system that is not tied to any stable financial asset or fiat currency, so bitcoin quickly became a very expensive and risky investment.