Facebook is launching a cryptocurrency. Named Libra, Facebook is developing a stablecoin. News of Facebook working on its own cryptocurrency is not new, its been around for a while, but the release of the white paper is being used as a probable reason for Bitcoins $2,000 move this week.
All traded markets are discounting mechanisms, pricing in the expected, reacting to the unexpected. Its the reason companies can announce dreadful results and yet rally in price because the results, though terrible, were better than expected.
Is the move in Bitcoin factoring in not Facebooks cryptocurrency debut, but the potential of Facebooks entry into the cryptocurrency space?
Its not about Libra. Its about legitimacy and what legitimacy infers. It could, for example, soften Indias stance on cryptocurrencies. India has a population of over 1.3 billion people, equivalent to over 17% of the worlds population. What effect would legalising cryptocurrency in India have on the market?
Its unknown, but Facebooks entry into cryptocurrency adds a variable that needs to be priced in, but its often not the news itself, but the implications of the news that has the most effect.
One skill deployed by the 5%, the most successful group of speculators and investors, is the transmutation of new information.
https://www.altcoinsidekick.com/blog/velvet-revolution