Facebook has tentative plans to launch the Libra project in 2020. The Libra token is being marketed by the social network as a “global cryptocurrency built on blockchain to promote financial inclusion”. To avoid volatility, the crypto will be backed by financial assets such as US Treasury securities and a currency basket. In this article, 4 experts share their forecast on Facebook Libra price predictions.
The Price Of The Libra Coin Will Look To Decrease As We Head Towards The End Of The Year
“Since the Facebook Libra coin is a stable coin made up of predominately the US dollar, followed by the euro, any changes in these two currencies will affect the Libra price. Right now with the ongoing uncertainty in the UK markets around Brexit creating nearly daily changes in the price of the euro and ongoing challenges in the Trump administration with the impeachment charges, the price of the Libra coin will look to decrease as we head towards the end of the year.
Coupled with this the ongoing regulatory issues around Libra, it doesn’t seem like the price has a chance to strengthen. The project is still plagued by ongoing concerns which have caused the delay of the launch till 2021. This will further continue to put downward pressure on the price. In the meantime, this will create room for further speculation on whether or not Libra will indeed come to market and be given a chance to flourish.
It’s also worth pointing out that the price will be determined by the utility of the Libra coin and its ability to be adopted. Right now the only way we can see adoption is in Libra helping to facilitate international transfers to family and friends, in countries that lack financial infrastructure. Getting mass adoption will be key but will regulators allow for this?”
Sukhi Jutla, Co-Founder & COO, MarketOtders
In Theory $1 In Libra Coin Will Be Worth $1 In Real Assets
“Given that Libra will have full asset backing on day one, it will likely have more initial stability than other cryptocurrency launches. In fact, this is the aim of Libra’s creators, as they envision it being used more for daily transactions as opposed to speculation like Bitcoin. That means that in theory $1 in Libra coin will be worth $1 in real assets. Of course, this is only if everything goes according to the initial plan, which as of now seems unlikely.
With many of the initial key backers in the Libra Association management group backing out, Facebook has taken on an even more prominent role in the project. This means that Libra will be even more heavily associated with Facebook, riding Facebook’s reputational tide. When Facebook comes under scrutiny again, as it surely will if the recent past is any indication, then the price of Libra may be affected. Despite the Libra Association’s best efforts, the currency is still largely perceived as a ‘Facebook currency.’
All of this means that it’s still early days to have a solid price prediction for Libra coin. There’s the original plan, and there’s the reality of the coin. And this reality is changing on an ongoing basis given government pushback for more oversight.”
Nikola Baldikov, Digital Marketing Manager, Brosix Instant Messenger
A More Valuable Libra Statistic To Predict Would Be Its Market Cap
“Facebook Libra is slated to be a stablecoin, so there’s really no clear way to provide a price prediction. According to the Libra Association, the new stablecoin will be pegged to a basket of goods and currencies, which will effectively remove the volatility that’s common to other cryptocurrency, such as Bitcoin. Therefore it’s futile to try and predict the Libra price because the price will likely remain consistent over time.
A more valuable Libra statistic to predict would be its market cap as it more accurately demonstrates the coin’s level of adoption. You calculate the market cap by multiplying the price by the number of Libra coins in circulation.
Considering Facebook currently has around 2.5 billion users, Libra’s market cap could blow all of the other cryptocurrencies’ market caps out of the water by the get-go. (To put that figure into perspective, Bitcoin has only 44 million wallets. And many people possess multiple wallets, so the total number of Bitcoin holders is even smaller.)
That said, Libra has come under heavy scrutiny from governments across the world. And it’s likely that numerous countries will flat-out ban it. If Libra becomes the de facto currency for even just a few countries, though, its market cap could reach into the trillions.”
Steven Buchko, Co-founder, Coin Clear
It Would Be Somewhere Close To The Value Of A Dollar, Euro Or A Pound
“The price of a coin should be in the area comfortable for users of the social network. It would be somewhere close to the value of a dollar, euro or a pound. It has to be convenient for people to measure it and without 8 zeros after the decimal point.
Typically, the value of the shares of a given company can be estimated based on the financial results of this company for previous periods and the forecast for the development of this company (taking into account external factors, the development of industry, technology, etc.). When the stock or payment instrument does not have a history of business activity, then only the second option remains – the forecast for demand, taking into account a specific industry.
In the case of currency, it’s much more complicated. It could be compared to a startup without a product going IPO and immediately starting to trade only on the expectations of investors.
The next step is to make the coin convenient to use. Here, you obviously need to achieve maximum convenience. It has to be as convenient to use for calculations as it is now by using the dollar, euro, rupee or yuan. The simplest way would be to approach the exchange rate of this currency in the ratio 1:1. Of course, the question is how in this situation to please all consumers? Obviously you can’t please all but given that Libra’s “homeland” is the United States, it is clear that the rate will be as close as possible or at least a multiple of the integer dollar, that is, 1, 10, 100 or 1000 USD. Nevertheless, the fewer zeros you have – the more convenient would it be.
The evolution is taking place, there BTS and ETH are being replaced by more modern cryptocurrencies, such as Gram, Libra, Venus, devoid of current drawbacks. This is the evolution of technology and adaptation to mass use – therefore, this is good not only for Libra, but also for other crypto projects. Corporations and states will set the vector for a new round of market development there their currencies will begin to dominate and be adopted by the populations around the world. Governments and companies will have complete control over the costs of each individual. While it somehow contradicts the philosophy of blockchain and decentralisation of power, for the average person it does not really matter whose currency he is using as long as he or she gets paid. People also do not care much about their privacy, if you look at the speed of adaption of voice assistants and other gadgets tracking your data. Most attractive will also become tools that will allow you to invest with a fixed risk. The financial crypto industry will continue to develop in the direction of replacing traditional financial instruments, such as loans, profitable deposits and insurance services. Projects that implement these ideas will become the most interesting.”
Alexey Ermakov, CEO and Founder, Aximetria
Facebook is touting the Libra cryptocurrency as mobile, stable, fast, scalable, and secure. The social network is also lauding the merits of the crypto as a service for the nearly 2 billion adults around the globe who do not have access to a bank account.
For those interested, have a look at our review of Binance, a global cryptocurrency platform that provides customers with access to more than 100 cryptos. For those considering Bitcoin as an investment for an IRA, here’s our BitcoinIRA review, to learn more about your options.