Facebook ignores Bitcoin, works on NFTs and stablecoins instead

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David Marcus, co-creator and board member of Diem (formerly known as Libra), which is a centralized cryptocurrency project initiated by Facebook, pointed out in an interview with Bloomberg on Tuesday, that the company just doesn’t understand Bitcoin, and continues to flounder in delivering even its own altcoin project, or a single NFT.

Marcus confidently told Bloomberg that “we believe the world needs a better payments system.” He hinted that after all these years, Facebook is almost ready to provide the solution.

It’s incomprehensible that a company with access to the lion’s share of the world’s computing power hasn’t realized that Bitcoin has already solved the issues of final settlement, near instant transactions, monetary privacy, money without authorization. and payment without commission.

Bitcoin and the Lightning Network are on the verge of being adopted as legal tender by the country of El Salvador in a large-scale demonstration of all the virtues that Bitcoin has to offer for years. Facebook has no idea.

Marcus even commented: “We are really falling behind at an alarming rate.

When asked what the delay was with the release of Novi, Facebook’s hot non-private wallet, Marcus assured Bloomberg that Novi was “ready now”. But as to why it was not released, he said:

“We want to make sure that we can earn people’s trust over a long period of time.”

This statement should be presented here without comment. Over the years, Facebook has consistently shown an interest in compromising the privacy of more people than any business on the planet. The issuance of NFT and an internal proof-of-stake altcoin via hot wallets is a testament to the fact that Facebook is functionally a watchdog company.

So what is Diem?

Diem is a simple rebranding of Libra, a centralized proof-of-stake cryptocurrency project started by Facebook in its slow, deaf, megalomaniacal quest to solve the world’s money problems. Facebook has been “examining” the blockchain and promising to bank the world’s unbanked and solve transfer fees for years through this project, but it has failed to deliver any real product.

Plans for Diem and Libra have both been doomed from the start. The centralized stable coin that Facebook is planning will not be based on mining or proof of work, so it won’t be any different from any other ICO scam, i.e. if it manages to get it to market. The issuance and control of Facebook tokens will effectively make it a small digital form of fiat, running on a proof of wealth concept, whereby stakeholders such as Visa and Mastercard pay to operate large ‘nodes’ that serve a purpose. unclear.

It’s unclear if Facebook even considered why they would put such a misguided project on a blockchain. Nothing in Diem requires a distributed time stamp server, let alone a centralized time stamp server. The company would do better to issue and maintain its future digital fiat from a centralized database, from which it could more effectively monitor Diem holders and sell data about them.

Blockchains outside of Bitcoin are unnecessary, because Bitcoin already exists. So far, no distributed proof of work system has subsumed Bitcoin in terms of function, adoption or decentralization, and with each passing day it becomes more unlikely that anything can do so. Bitcoin, the original blockchain technology, was invented in part to fix money by removing the influence of centralized companies from its issuance. Not everyone needs Facebook, or a centralized, controlled, extremely private, and authorized version of Facebook money.

On confidence, Marcus commented: “I think over time there will be more reliable stablecoins.”

When asked why Facebook deserves people’s trust and how it would respond to criticism that Facebook isn’t exactly the gold standard for trusted businesses, Marcus replied, “I’m not arguing for blind trust, I plead for a chance to gain people’s trust.

Facebook does not understand the problems of trust-based monetary systems or chooses to ignore them in favor of profit. There was no mention in any part of the interview that Bitcoin solved the trust issue over ten years ago.

When asked if Facebook had considered Bitcoin to be involved in the Novi wallet, Marcus spoke about the price fluctuation of Bitcoin denominated in US dollars. This is a totally mistaken understanding of what Bitcoin is. The Bitcoin protocol itself is agnostic to the US dollar. One Bitcoin is equivalent to one Bitcoin. Naturally, when you compare a rare asset like Bitcoin to an infinitely swelling asset like fiat, you will see volatility.

Launch error

Diem was originally intended to be a stable coin, connected to an altcoin basket via Novi. Now, Diem aims to be strictly a stable dollar coin, Marcus told Bloomberg.

He commented that Novi’s hot wallet may in fact have to be launched without Diem, “as a last resort”. But I hope the two products can be marketed together, as Facebook executives seem to believe both are needed to change the world.

Marcus explained that Novi, in its current state, is “certainly not ready” to even host a digital fiat currency.

Marcus’ frustration with the fiat system is that it takes three days to clear ACH payments, he told Bloomberg. What he unfortunately does not understand is that by decree, there is no final settlement.

In the fiat world, there is always a pervasive risk of forfeiture when money is held by third parties, and most of the time people don’t even keep their own wealth. They must request permission to access it from a bank.

With that in mind, it’s extremely unlikely that Facebook will change the world’s currency landscape in any meaningful way, or deliver a centralized currency product that we’ve never seen before.

Regarding the company’s future operations, Marcus told Bloomberg that as a member of the board of Diem, he could not speak on their behalf because the members of the board were not leading. nor did they control Diem’s ​​operations.

NFT Facebook

According to Business Insider, Facebook’s crypto boss said the company “is considering building NFT-related functionality” on Diem.

“We are in a very good position to do this,” David Marcus told Bloomberg on Tuesday.

The project is apparently still too early in development for Marcus to detail Facebook’s NFT product plans, but he assured Bloomberg that “the company’s developers are on the roll.”

“We’re definitely thinking about it,” he said. “This is truly an area worth exploring, and where we can have a positive impact for both creators and consumers.”

Are NFTs still a trend? Facebook has been missing out on opportunities to buy Bitcoin or launch an ICO for years, but not even sell an NFT? Isn’t Facebook supposed to be a tech company?

It’s not complicated. The creation and sale of NFT are the responsibility of college students. Granted, there is absolutely no logical and valid use case for blockchains outside of Bitcoin, Facebook just doesn’t get it, and they not only missed the mark, they’re not even approaching the coast of. revolutionary money technology.

NFTs are functionally digital arrows that point an artist’s signature, linked to a buyer’s information, to a time-stamped jpeg. Of course, many digital creators have effectively capitalized on fashion and made banking, but at the end of the day, many creators are selling all the eth they brought from these pump and dump systems for Bitcoin, if they want to maintain the wealth, or they sell for fiat, if they are completely disconnected.

The problem with NFTs is that you can’t relate digital objects to the real world without human mediation. Bitcoin doesn’t even try to attribute real-world ownership in this way. Bitcoin is an elegant solution to this oracle problem. Bitcoin has private and separate digital addresses that are cryptographically secured. As a human, you have access to these addresses and therefore control the unspent Bitcoin they represent, or you don’t.

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