Facebook has introduced its currency with great fanfare, and this article here is once respectable example of the decline of journalism. When it comes to business topics, favor journalism now reigns supreme. It leaves me breathless. There is a complete lack of expertise, criticism or at least healthy skepticism. How can one write such content-empty, naive and uncommented nonsense on such a topic? Suitable to the contentwise superficiality explanatory pictures in the infantile Trendy Comic style. The editors wanted to quickly write something about the topic of "Libra" and then handed the job over to the outside world. The brief was: easy to read, no technical details, but still include lots of keywords so that the search engine would find something. The result was a wonderful buzzword bingo: cryptocurrency, "Internet of Money", "blockchain", "open source", "coin". Of course, the quality media all blithely copy off each other. A Google search with "Facebook plans world currency" yields 1800 hits. Lord again! Can't they even think of their own headline anymore?
Mind "cloudy"
Apart from that - "Facebook introduces world currency Libra!" how do you come up with this sentence, how can you write it down without carrots growing out of your eyes. Why don't you just write: "Facebook plans world domination"! This fits a quote from the 90s cult series "Pinky and the Brain":
Brain: "I'm starting to cloud your mind. "Pinky: "Ow boy, Brain! It's working, I can't see you anywhere. "Brain: "He obviously has no mind to cloud."
I think this article and various similar ones are harmful and stupid because an extremely dangerous development is being played down. Mega-corporations with a dominant market position are introducing pseudo-crypto-currencies. It treats the complex technical subject matter only superficially, a bit on a home computing level.
Know the "Austrians" - Dude!
Based on the criteria of the "Austrian School", here is my assessment of the "Facebook Money" and some questions that arose for me. This article does not claim to be an exhaustive treatment of the topic of cryptocurrency in general and Libra in particular, it is just a few thoughts, suggestions or considerations on my part, whose in-depth consideration I would have expected from a professional journalist.
Exchangeability and intrinsic value
The Facebook Libra will certainly become a very liquid exchangeable commodity. Even with the cryptocurrency with the highest market capitalization BitCoin, only 1.5% of the transaction volume is used for the payment of goods and services. Presumably, that's where Facebook wants to go with its Libra currency and its 2.5 billion users. The intrinsic value of Libra consists of digital zeros and ones - or in other words: Warm computer air!
Acceptance
This is where it gets more exciting. Whoever has control over a currency has power - a lot of power. That is why there is not a single state in the world that allows free market money. All states in the world force their citizens to use the state currency and (!!!) forbid their citizens to use other currencies debt free. Try paying your VAT with the Laotian Kip... The question at this point How will Facebook position itself? Will Facebook become the new state money! Of a - world state?
Divisibility and denomination
The Facebook Libra should leave nothing to be desired. Facebook will even allow micro amounts as payment with its computer zeros.
Transportability
The Libra is not physically transported, but the holder needs access to the Internet and a Facebook account either via smartphone or PC. And if a state, like China in the case of BitCoin, or the USA in the case of the SilkRoad exchange, restricts technical access to the exchanges, then digital transport becomes difficult.
Durable value and usability
Who guarantees usability in the Facebook group? Cryptocurrencies/digital currencies are nothing more than a piece of software that, technically speaking, can be switched off, regulated or unlocked at any time. At this point, I always earn scorn and derision from fanaticized cryptojerks. But believe me - I've been in the IT industry for 20 years, the average lifespan / usability of software is only 2 - 4 years. After that period of time, the environment of the software such as the operating system, drivers, hardware and other necessary software packages have changed (evolved) to the point where the original software no longer works. In the case of Libra, Facebook board members determine the value and usability. You want to fill up with Libra - no problem - but please only 10 liters per week! You know ... for the sake of the environment! By the way - on Mondays meat products are 20% more expensive with Libra - the world climate comes first. And last week you made some dubious comments about asylum policy in a Facebook post. In doing so, you unfortunately violated Facebook's terms of use. How does the permanent usability behave if (already available) quantum computers can crack the known encryption algorithms in milliseconds. What will happen to the fantastic Libra if the Facebook servers are hacked or Facebook goes bankrupt?
Exact determination of the exchange value
A good currency establishes itself in a free market of currencies in which the market participants themselves decide which currency best satisfies their needs. I suspect, however, that the Facebook Company will try to undermine this market mechanism through market agreements and cooperatism. According to the motto, I advertise your products and you accept my currency as a means of payment. That's okay - you just have to know it.
Unforgeability
This is going to be really exciting. The last Facebook hack https://www.pc-magazin.de/news/facebook-hacker-angriff-betroffen-was-tun-3199945.html was just a few months ago. Am curious about the news 1 million fake Libras in circulation - and this news will come!
Any multiplicability!
Where does the Libra actually come from, How much exists of the Libra, Who is allowed to produce Libras. Is the Facebook CEO allowed to produce his own Libras and then use them to fuel the diesel engine of his 150m yacht? If so, I want to be able to make my own Libras too! Can someone tell me who to contact at Facebook?
And in the digital age ... anonymity!
Facebook is probably one of the worst data octopuses mankind has ever seen. The GDR's STasi, on the other hand, was a small animal breeding club. There have been multiple reports that Facebook also has access to personal letters, pictures and conversations that are on your computer, SmartPhone, tablet, etc. So there is no end to Facebook's spying on users, and it will reach a whole new frightening dimension with the pseudo-cryptocurrency Libra. What many users don't realize is that Facebook has access to your files even when you don't have Facebook open.
Money, Crypto, and God Players
What is supposed to be crypto about this currency remains to be seen. I think cryptocurrencies are quite useful and welcome. You can get a fairly complete overview here. (Good!?) Cryptocurrencies work with extremely complicated mathematical calculations and complex algorithms of computer science. The very definition of a hash algorithm should leave many users of said currencies in need of explanation. The merry-go-round for money, crypto and God players is spinning particularly fast at the moment and cryptocurrencies (Initial Coin Offerings) abound. So whether a cryptocurrency is good, bad, useful, trustworthy and functional can ultimately only decide a market mechanism based on voluntariness. The result would be free market money! Ergo freedom!
