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Facebook Libra VS. Bitcoin – The real difference between the two Cryptocurrencies

In layman terms, both Facebook Libra and Bitcoin are just cryptocurrencies whose launching dates are over ten years apart. However, there are more differences than the mere launch date of the two cryptocurrencies. Here, this article highlights the four major differences that can be appreciated with ease. Facebook Libra is a controlled cryptocurrency that is owned by the Libra Association while Bitcoin is uncontrolled and decentralized as it is not owned by any entity. The supply of the Facebook Libra is subject to forces of demand and supply, as determined by the Libra Association. In contrast, the supply of Bitcoins is limited to a maximum of 21 million bitcoins throughout the existence of the cryptocurrency. This means that Bitcoin is a deflationary cryptocurrency, unlike Libra, which can be inflationary at times. The value of Libra will be dependent on the value of specific national currencies as well as other stable financial instruments. This is unlike the value of Bitcoins, which is totally independent of the value of any government-issued currencies.Facebook Libra will operate on a permissioned blockchain, which means that mining a libra will require one to seek approval in advance. Contrariwise, Bitcoin runs on permissionless blockchain and miners can exercise their discretion in their decisions. Although Libra is yet to be launched, it has gained significant attention thanks to the wide media coverage, and most people understand that its launching might not materialize until the surrounding concerns are addressed. Therefore, if the cryptocurrency sustains the media attention for long most people will appreciate its difference from Bitcoin much easily.

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