Will Facebook's New Crypto Venture Kill Bitcoin Or Fuel the Fire?

Facebook is entering the crypto-space with the roll-out of its latest venture, ‘Libra’ later this week. The platform could provide the embattled social media giant with a new revenue stream of tremendous proportions, but could it destroy bitcoin in the process?

“I find it very significant that bitcoin peaked at the launch of the CME Futures contract but bottomed literally when JP Morgan knocked bitcoin,” Frank Holmes, chief executive officer of U.S Global Investors and the chairman of HIVE Blockchain Technologies (TSX/V: HIVE) said on Monday. “And Facebook [during this time] stopped all marketing of bitcoin and cryptos as they were building out their own currency.”

Mark Zuckerberg’s company is expected to provide details about its cryptocurrency, Libra, in a white paper set for release Tuesday. Reports suggest the new digital coin will allow Facebook’s base of more than 2 billion users across Facebook, Instagram and WhatsApp to transfer money and purchase goods without fees.

Facebook’s venture into digital currency markets comes as investor interest jump back into the marketplace. The bitcoin price hit $9,381.82 on Monday, the last time the digital coin hit a level as high as $9,000 was May 2018. It is up 140% since the start of the year.

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