Circle CEO Jeremy Allaire believes that the price of Bitcoin will go north of $10,000 by June 21, which will mark the dawn of what he calls the “Crypto summer”. He points to Facebook’s Libra launch as the catalyst that will drive this remarkable rally.
Allaire’s prediction is quite bold considering that the cryptocurrency has barely touched the $9,200 mark despite recording 2019 highs not seen before, since late last year. His prediction does not seem like an inconceivable stretch considering the momentum the price is gaining while steadily rallying to $9,000. Allaire believes that the launch of Facebook’s cryptocurrency Libra will prove to be a catalyst of the price of Bitcoin since it could go a long way in boosting adoption.
Facebook is not only bringing its brand power to the crypto space with its new cryptocurrency, but also several other powerful companies to back up the Libra project, which includes; Uber, MasterCard, Visa, and PayPal.
These partnerships prove that Facebook has a plan of putting its cryptocurrency into practical uses with the help of these powerful partners. Allaire is of the belief that Facebook will do a great job at demonstrating real world uses of cryptocurrency to people through its cryptocurrency, which might boost the adoption of Bitcoin.
What will be the correlation between Facebook’s cryptocurrency “Libra”, and Bitcoin? There is a huge chance Libra will make Bitcoin look good other than take away from it. This is because Facebook’s crypto will be controlled by the Social media company, not decentralized and anonymous like Bitcoin. This means that Bitcoin in most people’s eyes will retain favor and be viewed as the real cryptocurrency true to its purpose.
Reports have it that the Social media Giant’s CEO Mark Zuckerberg has been talking to regulators as he seeks to prop up Libra as a Bitcoin disrupter. He has also reportedly held talks with U.S treasury officials and the Bank of England’s governor, which reveals efforts to be in good stead with the establishment as he drums up support for Libra.
Since the social media giant will have control over Libra, it means that the company will have access and control over user data, which might be shared with the establishment; meaning that your transactions might not be kept private as in the case with Bitcoin. With the social media company having control over user data, it’s not inconceivable that some users might see their accounts frozen for whatever reason the company may find justifiable. This will indeed defeat the whole purpose of cryptocurrencies.
For these reasons, Allaire’s assertion that Facebook’s Libra may have a good effect on BTC prices makes sense. Users will flock to Bitcoin once they compare and contrast what they stand to lose or gain from both coins.
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