Libra – Zuckerberg’s dangerous cryptocurrency lie


Facebook is going to launch its own cryptocurrency
with the potential of turning the social network into the largest payment service in the world. Zuckerberg promises strong privacy protections
and claims the new digital currency will be independent of the Facebook company. The new coin called Libra is planned to launch
in early 2020, and to market it, Facebook is capitalizing on the growing popularity
of blockchain cryptocurrencies. But when we compare how traditional cryptocurrencies
actually function with what Facebook proposes with Libra, the differences cast a light on
Facebook’s intention to become a global hegemon of the financial world. There is no universally accepted definition
of cryptocurrency. But the majority of them share several key
attributes that attracted many people to start using them. Traditionally, cryptocurrencies operate on
blockchains. Blockchain is a public ledger of transactions
that are chronologically organized in time-specific blocks. For example, in Bitcoin network, a new block
of transactions is created every 10 minutes. Usually these blocks are created by a process
called mining – solving computationally difficult problems and validating transactions
broadcasted by its users. Miners get rewarded with cryptocurrency for
contributing their computing power to the network. Most cryptocurrencies are traditionally completely
decentralized and free from any authority. Every user can create their wallet or as many
wallets as they like and store cryptocurrency that they can transact without any restrictions. There are no banks or governments that can
dictate how someone can and can’t use their digital money. This makes cryptocurrencies very attractive
to free speech advocates as they are extremely censorship resistant. Libra is going to have a central authority. Libra Association. The Libra Association is formed by a small
group of Founding Members. Currently there are 28 members and the Association
hopes to have 100 of them by the initial launch date. The criteria to become a member are rather
exclusive. Your business needs to have a market value
greater than $1 billion, reach at least 20 million people a year, and be ranked among
the top 100 industry leaders by lists like the Fortune 500. Charities and academic institutions are also
welcome to join the Association, but they also have to be from the worlds top 100. Among the members currently are payment gatekeepers
like Paypal, Visa or Mastercard, tech billionaires from Facebook, Spotify and Uber, cryptocurrency
services like Coinbase and Xapo or a venture capitalist Union Square Ventures. All members have equal vote, but for now,
Facebook claims leadership in the development of the platform. Most blockchains are permissionless. That means anybody can use them and run its
own full copy of the network without needing to ask for permission from anybody. Everybody can observe the whole blockchain
from the beginning to the present time. It is maintained by people constantly connecting
and updating their copies of the blockchain to the network. There are no central servers as the whole
blockchain runs as an interconnection of its copies, also called nodes, directly beaming
transaction records into the Internet. This decentralized structure makes blockchains
extremely resistant to attacks. Not all blockchains are permissionless though. Libra will start as a permissioned blockchain. Only the members of the Libra Association
will be privileged to run nodes and validate Libra transactions. No one will be allowed to mint or burn Libra
without the permission of the Association. Although Facebook promises Libra will eventually
become a permissionless blockchain, there is no indication as to when this is going
to happen specifically and how they are planning to go about it. It is worth noting that no permissioned blockchain
has ever succeeded in transitioning into a permissionless blockchain. The vast majority of blockchains are transparent. That means with the exception of a few obfuscated
blockchains, using a cryptocurrenciy requires broadcasting your entire transaction history
to the ledger. In fact, they are so transparent that some
people maintain so called “rich lists”, rankings of addresses holding the most amount
of coins. This is a huge privacy and fungibility issue. Every coin on the network can be traced back
to its very origin of creation and all future spending can also be recorded. This not only gives observers power to collect
transaction records of everyone on the blockchain, it also enables them to freeze certain addresses
or block use of particular coins to prevent them from being moved across exchanges. Libra blockchain is also going to be transparent. But the pool of validator nodes is only open
for the members of the Libra Association. This will allow a group of 100 unaccountable
organizations to observe and track all transactions on the network, with full decision authority
to freeze or blacklist certain addresses or transactions. Whatever happens on the network will not be
open for public scrutiny but will develop strictly behind closed door of billionaire-class
members of the Libra Association. However, making blockchains transparent is
not a requirement. Privacy focused cryptocurrency Monero already
obfuscates its blockchain by default and automatically conceals transaction amounts and address balances. The level of privacy by design of a blockchain
is a thus purely a choice of its developers. So if Facebook wanted to, they would make
Libra blockchain more private. But for most people, using Libra will be synchronous
with using a range of Facebook apps, like the Messenger, WhatsApp or Instagram. This deep integration will make it easy for
Facebook to identify and continuously track financial behavior of the vast majority if
not all Libra users. What gives cryptocurrencies their value is
the hard-coded cap on how many coins there can be in circulation. Demand for a scarce currency drives its value
up and down, which reflects on the volatility of most digital currencies. Some cryptocurrencies claim to be so called
stablecoins because they are backed by a fiat currency, like the US dollar, or other tangible
materials like gold. Most coins are not stablecoins because holding
up a reserve requires putting aside billions in cash that cannot be moved and maintaining
such a reserve usually predicates a central authority. Currently, no decentralized concept for holding
a distributed reserve exists and thus stablecoins are usually in direct contradiction to the
traditional concept of decentralized blockchains. Most among the cryptocurrency crowd believe
that volatility of digital money is only a temporary effect of early adoption and that
it would disappear once full adoption takes place. Libra claims to be one of those stablecoins. But it is not pegged to any particular fiat
currency. Rather, what’s propping Libra is a reserve
of low-volatility assets comprised of government securities, treasury bonds, bank deposits,
and a basket of foreign currencies, including US dollar, euro and Japanese yen. The purpose of the Libra Reserve is to hold
its value. For every Libra created, there must be an
equivalent amount of assets held in the reserve. And for each coin burnt, assets must be taken
away. Libra Association aims to form this reserve
by deposits from private investors and founding members. Just like with other banks, this reserve will
be used for further investments to earn interest. What’s more troubling is that it will remain
up to the Association to decide on the composition of the Reserve basket, where to invest the
reserve money and what risks they are willing to accept. This essentially makes Libra function like
any high street bank. Even users can deposit into the reserve by
buying Libra. But while in a traditional bank, customers
can earn interest from their deposits, the interest earned from deposits in the Libra
Reserve will only go to reward the Founding Members and for development of the platform. Where Libra Association decides to make investments
with its Reserve is going to play a major political role. Purchasing strategic government bonds or debts
can buy a lot of two way influence from the Association into the said government and vise
versa. Libra will thus become the ultimate example
of revolving door into the financial assets of hundreds of millions of people. Development of the majority of cryptocurrencies
is open source and relies on a consensus. Preferably, the computing power of the network
is distributed among so many users that no single party or a group can have too much
leverage. Preferably, all software from wallets up to
the blockchain core is open source, which gives users trust that no malicious intent
is embedded in the source code. Libra blockchain is also going to be open
source. But the development and decision-making power
is going to be withheld by the Association. There will be no other entity on the platform
to check or balance the the Association’s position. Libra Association will occupy a range of crucial
responsibilities. Collectively it will decide on the future
and the development of the blockchain protocol allowing the Association to change the rules
of the network just like Facebook changes its newsfeed or censorship algorithms. Its members will act as the only validator
nodes. They will have the power to decide who gets
to join the Association and even who gets to use the network. Payment providers Visa, Mastercard, Paypal
and Stripe will be able to prevent people from transferring their funds to Libra or
cash out their Libra coins into fiat. It is expected the same Terms of Service on
Facebook, especially the points regarding speech and conduct of its users, will apply
to the use of Libra. With traditional blockchains, only exchanges
usually enjoy the power to freeze particular addresses and users have a plethora of other
alternatives to purchase digital coins with cash, such as crypto-ATMs or peer-to-peer
exchanges. Facebook, however, will act as a blockchain,
a payment processor, a wallet holding users funds, and a social network where people conduct
their finances all in one organization. So this is how Facebook, the world’s largest
social network, is on track to potentially become the world’s largest financial network. Does Facebook really need to do this to earn
more profits? Well, they are running out of options. Cryptocurrency is a $300 billion market right
now and is becoming more and more mainstream among the financial, technological and retail
industries. But as cryptocurrencies are becoming inevitable,
governments, banks and corporations are losing control over the financial system. Just as the Internet gave us free flow of
information, blockchain is giving us free flow of finances. Monetary decentralization poses an existential
threat to collecting taxes and investment of deposited money. And with the growing awareness of the importance
of Internet privacy, advertisement-based business model is also in jeopardy. Offering a free service in exchange for personal
data is no longer enough. Some social media platforms like Nimses, Minds
or Taringa! Began rewarding their users with cryptocurrencies. During Congressional hearings, Zuckerberg
promised users would have an option to get a paid version of Facebook with less data
collection and better privacy. Instead, Facebook is now going to pay users
with Libra coins for watching ads or engaging on the platform. When Libra reaches its full adoption, that
is up to 3 billion combined users of the global Facebook empire, it will become dangerously
detrimental to the financial system. If it succeeds, governments across the world might consider the Facebook-Libra empire “too big to fail”. During times of financial meltdowns this could
mean trillions of dollars of tax payer’s money handed out in a form government bailout
such was the one during the 2008 financial crisis to the Wall Street banks. Blockchain-based digital currencies offered
an escape from the ever tightening grip of centralized control imposed by big banks and
governments. They promise financial freedom and resistance
to surveillance and censorship that limit how we can spend our money and who we choose
to support. Facebook’s Libra embodies everything original
cryptocurrencies were created to fight against. What we need is to have truly independent
and decentralized networks that give us more freedom and privacy, not less. If you too seek this freedom, stick with Bitcoin
for its value and Monero for its privacy. I am opening a Monero wallet where you can
donate if you want to support my channel so that I can produce more content like this. With Monero, you can donate completely anonymously
and privately, as its blockchain leaves no trace of your transactions. YouTube is cracking down on independent content
creators and favors large corporate media organizations instead. But with your support we keep fighting in
this information warfare. Thank you for your support and thank you for
watching.

100 thoughts on “Libra – Zuckerberg’s dangerous cryptocurrency lie”

  1. Cryptocurrencies was created and controlled by the CIA. The identification number on a dollar bill, birth certificate, SS, etc…. Is all block chain. Wake up. Block chain has a back door, just like when the banks steal your dollar bills by closing your account. More lies more FAKE Slavery tool. Wake up

  2. This is honestly a load of crap. who wants to pay $250-500 a year for bank access. Libra is financial freedom for the people, its the Visa network minus the cost. i wish humanity could see its positives.. because all the cons of the banking industry are weighting us down.

  3. Facebook is a diversion from the obvious: when you want stuff done…including coordinated legal attacks in court with massive media smearing… hire enough attorneys and it will happen. www.RisePatriot.com www.WellsFargoWitz.com .
    Regarding Facebook: an actual audit of a sample of users will show a) more than half are bogus and/or duplicated avatars. b) people's devices sign them in once installed. A lot of folks…maybe over half of actual human beings who have it don't actually use Facebook and often do not see the ads due to blocking software. Then…it appears the ads are a shell game of some sort among internet media companies with the same or worse exaggerated user base. Internet must be programmed to reflect actual identity as that is the basis of law… not massing of avatars and roboposters. BTW. I am the Supreme Court. (!)

  4. The future of money is neither libra nor bitcoin… It is going to be federally issued currency on a distributed ledger but an inflationary currency like Fiat… the fact is Deflationary currencies are to unfair to be accepted as currency, they will remain as store of value/speculative investment or the digital equivalent of gold but future generation will not accept a deflationary currency and would create something new… It is to unfair… Also the most widely used distributed ledgers will be centralized because the loss of assets on decentralized ledgers with nobody being able to reset things is just not acceptable for the masses and ridiculous for a world of tokenized assets… Also most "blockchains" will disapear within years because of quantum computers… 😛

  5. FB is deceitful, immoral, unethical and is not robust, nor reliable, nor stable and has arbitrary rules So would I trust Libra? Not in 1000 trillion life-times!

  6. If you don’t really know who mr zuckerburg is he is a family Aires to the Rockefeller family which runs the federal reserve cartel Now you get it

  7. 0:05 "I SHALL PLACE ONE FOOT IN FRONT OF THE OTHER AS FOLLOWS, IN ORDER TO PROPEL MYSELF TOWARDS ANOTHER LOCATION — BEEP BOOP"

  8. Zuckerberg is an admirer of the ancient Roman emperors who had complete control and domination of the government and people. He believes he was a Roman emperor in the past and he wants to recreate a new Empire where he is the new Emperor. He is drunk with power and his sociopathic mind will not stop until he is dead. How many sociopaths run the world now? I wish I had no conscience and was filthy rich. What a great life not to give a damn and be rewarded for it.

  9. Digital transactions/money and privacy doesn't work well… I do prefer maintaining my money on a local bank in order to purchase on the Internet with strong security, rather than useless privacy… It's impossible to maintain private from big tech corps, thus I don't care about privacy at all, just security.

  10. All Crypto currency is a pump and dump scheme. Watch I bet within the next year or two Bitcoin will be back at $3k again

  11. The issue will be when the assets collapse in value that Libra is perhaps backed by, the $ invested will now be what Facebook owes the users that ponied up for a Libra coin in exchange. I doubt that Libra will be FDIC insured and so that it will have centralized nodes they will be easily attacked and thus $ gone. No thanks.

  12. One way or another, Facebook earned its 2 billion users. Of course they will cash in on that by making crypto that only Facebook controls

  13. Looks like the One World Currency is being ushered in, remember this Bible verse.

    "And he causes all, the small and the great, and the rich and the poor, and the free men and the slaves, to be given a mark on their right hand or on their forehead, and he provides that no one will be able to buy or to sell, except the one who has the mark, either the name of the beast or the number of his name."

  14. My initial thought was no one is dumb enough to use this. Then I saw a woman screaming at the kid behind the customer service desk at my local grocery store. She complained that her hamburger helper didn’t have any beef in it. Then I woke up and remembered amazon ran all the grocery stores out of business.

  15. Yeah let the guy who calls users of his platform dumb f**k**s, censors or bans anyone who doesnt have the same opinion as his and sanction violence to them, hold your financial capability on his hands.

  16. I deleted my google on my phone and got duckduckgo cuz I like privacy, next, my computer, next google spying on you should be illegal

  17. It's a trojan horse. He's planning on taking over the world and be the anti christ. I've watched 1984. lol. Then 1 world currency that you can only spend if you take the mark.

  18. Libra is basically a private house party of friends that won’t invite you cuz you are not cool , but at the end of it gives you the rest of the booze and asks you to pay the entire thing

  19. Libra is basically a private house party of friends that won’t invite you cuz you are not cool , but at the end of it gives you the rest of the booze and asks you to pay the entire thing

  20. Hey the hated one, have you heard about this? https://nypost.com/2019/07/14/swedish-people-are-getting-chip-implants-to-replace-cash-credit-cards/

  21. a bunch of moths will fly to the fire, get burned, and exemplify themselves to show the greatness of bitcoin and monero

  22. cryptocurrency =decentralized.
    while "libra"=centralized by the authority of top billionaires associated with facebook.
    you choose.

  23. Just letting you know im done. Im done with all this BS. I am
    unsubscribe because there is no point in hearing or knowing the truth
    when there is NO JUSTICE in America any longer.
    With comey and
    killary getting off Im just done with everything. They will get new
    million dollar books deals that we will all pay for etc. until there is
    an actual civil war and we can overthrough and kill all these traitors
    im done. signing off now

  24. Just letting you know im done. Im done with all this BS. I am
    unsubscribe because there is no point in hearing or knowing the truth
    when there is NO JUSTICE in America any longer.
    With comey and
    killary getting off Im just done with everything. They will get new
    million dollar books deals that we will all pay for etc. until there is
    an actual civil war and we can overthrough and kill all these traitors
    im done. signing off now

  25. they are building up for something big.. maybe this Libra coin is the supposed backup currency fpr the coming crash..

  26. This fucking lizard is trying to create a centralized cryptocurrency. Sounds to me like a government backed venture for them to get hold on the crypto scene

  27. You need to consult an English dictionary before recording… There were so many words that you pronounced with incorrect stresses.

  28. Centralization government and management will be past not future, libra fails indeed. Decentralized product is future, I will use block chain and bitcoin and any future decentralized product. If we everyone don’t join any centralization products we can make them disappear not only libra, but it needs everyone don’t join it, tell Every one don’t join libra plz plz plz plz….

  29. How can anybody think thst giving the billionaire class more power and influence over the government and our lives is a good thing.

  30. So, they are proposing "crypto" fiat currency, which defeats the entire purpose of having come up with something like Bitcoin to begin with. We don't want you printing tickets to steal our produce.. you need to earn your money just like everyone else, charlatans.. BY PRODUCING. Money for nothing schemes have got to go..

  31. Yeah don't trust Libra or Facebook. China is funding Facebook and this Libra coin operation. This social media platform will turn this coin to into a social credit score which means you will need to say good things about globalism or they will take your Libra coins away lol. That's why Mark Zuckerberg is married to an Asian woman. They want a global currency for China can control the people. Remember China 🇨🇳 is the Red Dragon behind the scenes.

  32. Just like what happened to myspace.com, Facebook will eventually become old and then something else will come along that's more advance and will replace it. This is how technology and web sites work.

  33. Their end game is corporations that can control how you even breath, financial centralization from banks to giant tech corps.

  34. My dad sent me a link from One America News Network concerning DuckDuckGo being not-so-private, have you anything to refute this?

    Here's the link: https://www.youtube.com/watch?v=MmiY8lYhG7I&feature=youtu.be

  35. But who says that cryptocurrencies eventually won't be taken over, as it's intended, by the banks? Who says is not intended?

  36. any currency to be valid needs international endorsement to be recognized as exchange medium, otherwise it has no valued except int he group who deal in it with each other.

  37. Zucky was at pedo island with Epstein drinking blood from the kidnapped children..look it up, and you expect me to
    Support dracula money…ya right.

  38. I hate banks as much as the next guy but letting these fuckers take over the financial world would be my worst nightmare

  39. If Libra goes mainstream and people really do decide to adopt it…they lose control of their finances and basically hand them over to Facebook. Lol this is insane.Can you imagine, owning 100 Libra Coins and whatever you spend them on, gets tracked? Also, they can freeze your account instantly for "breaking community guidelines" haha. They can bankrupt you in a second, remotely and without 0 liability. Good luck suing them if you're from anywhere else except the US. Facebook doesn't even have customer service FFS. I'm never going to accept this lmao

  40. If your coin is backed by a fiat currency like the US dollar then it is backed by nothing because the US dollar is backed by nothing other than the "faith in the US government"……we live in a strange world, its all made up…

  41. There's a plethora of crypto currency in this world countless for some reason I won't sell my bitcoin just to buy some libra when it comes to appreciation that coin can't defeat Bitcoin fuck you Zuckerberg 🖕

  42. The battle for capital continues… Pretty soon, the 1% will own not just 99% of everything but 99% of everyone. #resist

  43. When I first came to youtube comments like these were no where to be found I felt like Nigel no friends now 90% of comments are all about the same thing…EXPOSING THE LIES OF GOVERNMENT AND CORPORATE SCUM.

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