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What I think about FB's new cryptocurrency, Libra:
At F8, Zuckerberg hinted that payments would be a big thing in their apps. FB is going for Fintech to replace or phase-out ads.
At F8, Zuckerberg hinted that payments would be a big thing in their apps. FB is going for Fintech to replace or phase-out ads.
Very important to recognize that two things were launched: Libra (the cryptocurrency), Calibra (the wallet). Libra is open source, decentralized, co-owned as an association. Calibra is closed source just like WhatsApp is, and gives them a lot of leverage.
Launching Libra as an independent technology is very smart, it allows FB to have more interoperability, more partnerships, more support, more innovation, and less liability and blame when the scandals happen.
But Calibra is the REAL deal here. FB is not committed to open source and decentralization (LOL), it's still the middleman behemoth that it's always been. Calibra will centralize the attention and branding for Libra, and allows them to have real-ID enforcement and monetization.
It's like launching the Web (the open protocol) and Facebook Website (closed app) at the same time, but this time with a headstart of billions of users. It does not matter if the protocol is open or closed, they already have dominance. If competitors innovate, they'll just copy.
The plan with Libra is to disrupt by going 10x cheaper and more available. 10x is how disruptions happen. This is why they won't have fees on individual transactions, but they will have fees for businesses. Because of scale, this will still allow them to have massive profit.
When FB says they promise they won't do something, then it means they *may* do it. When they say they may do something, then it means they will definitely do it.
The Verge: theverge.com/2019/6/18/1868…
The Verge: theverge.com/2019/6/18/1868…
I've always said that FB is the ultimate platform to eat up everything else. They hold the social graph of billions of nodes and trillions of edges. They sometimes open source stuff, but they will never open this social graph. Not entirely, no.
On the social graph, any app is more compelling. And now – if we allow them to get away with this – they can capture the world's economy.
