Comparing Libra to Bitcoin

Facebook is about to launch a new payment system. Like Bitcoin, it will be based on electronic tokens and a network of distributed computers. However, the similarities pretty much end with this.

Here's a list of some major differences:

1. Bitcoin is not directly tied to fiat currencies. Libra is tied to a basket of government backed currencies.
2. Bitcoin transactions are final. Libra transactions can be rolled back.
3. The Bitcoin network is decentralized. The Libra network is centrally controlled.
4. Transactions in Bitcoin is slow. Transactions in Libra are fast.
5. Small transactions in Bitcoin are expensive. Small transactions in Libra are cheap.

From this it is clear that the Libra will be superior to Bitcoin as a means of exchange. Libra will also be stable enough for people to write contracts and set future prices based on it.

It appears that the Libra might have a great deal of success in many of the areas where Bitcoin has failed. Bitcoin is likely to remain a highly speculative asset with little to no practical use, while the Libra is going to see both adaption and use.

A literal basket of currencies

By Upupa4me - https://www.flickr.com/photos/meanderingwa/8490245097, CC BY-SA 2.0, Link