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Blockchain researchers at online brokerage eToro have argued that Facebook should look to support third-party stablecoins, not Libra.

According to a Nov. 28 report from Finextra, eToro’s blockchain research unit eToroX Labs believes that while Facebook’s crypto project offers a “trailblazing opportunity” to disrupt financial services worldwide, the social media giant needs to change its strategy to assure success.

Facebook should focus on wallet infrastructure

Distrust and forceful opposition have plagued Facebook’s project since its inception — prompting American politicians to recast Libra derisively as “ZuckBucks.” 

Yet eToroX Labs’ researchers argue that there is still something to fight for in realizing the company’s ambitious aim of embedding a peer-to-peer payment network that could purportedly improve financial inclusion globally.

Facebook could solve its problems by delegating asset issuance to regulated third-party partners, they say. 

According to eToro, independent, multiple fiat-backed stablecoins would remove the task of currency control from Facebook, which could instead focus on building its Calibra wallet infrastructure and rolling it out for the estimated 2.7 billion users worldwide across its platforms.

EToro is itself notably an issuer of a range of stablecoins, backed by the U.S. dollar, pound sterling and euro.

The firm’s CEO and founder Yoni Assia said that the Libra Association should lobby lawmakers to provide harmonized and streamlined regulatory frameworks that would cover “the governance of the third parties using the Libra chain for executing payments,” arguing that:

“The regulatory burden and associated compliance costs would befall those who use the ledger for their own gains, be it in the issuance of collateralized stablecoins, commodities or other financial instruments, effectively removing Libra from the money trail altogether.”

Proliferating options

Earlier this week, David Rutter, the CEO of enterprise software firm R3, ridiculed Facebook’s Libra announcement this summer as naive and “ridiculously stupid.”

As Libra continues to divide global opinion, the Libra Association is proceeding with development, reportedly logging over 30 projects and 51,000 transactions on the Libra network during the past two months of testing.

Facebook has meanwhile just announced the launch of a new fiat payment system, Facebook Pay, designed to facilitate payments across Facebook, Messenger, Instagram and WhatsApp.

In October, United States Representative Warren Davidson had argued that Facebook adding Bitcoin (BTC) to its Calibra wallet would be a “way better idea” than creating a new currency.

Cointelegraph By Marie Huillet , 2019-11-28 14:52:00 ,

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NewsBlock © 2019 - 2020 All rights reserved.

NewsBlock © 2019 - 2020. All rights reserved.

While Bitcoin’s price seemingly moves without rhyme or reason — collapsing by dozens of percent and embarking on face-melting rallies on a whim — the cryptocurrency market is filled to the brim with fractals.

Related Reading: Analyst: Bitcoin Price Likely to Fall to Low-$8,000s as Chart Remains Weak

A brief aside: A fractal, in the context of technical analysis and financial markets anyway, is when an asset’s price action is seen during a different time. This form of analysis isn’t that popular, but it has proven to be somewhat valuable in analyzing Bitcoin.

One recent fractal popularized by a well-known cryptocurrency trader is implying that BTC is going to return to the low-$7,000s in the coming days.

Bitcoin Fractal Implies Retracement to Low-$7,000s

A well-known crypto trader going by “Tyler Durden” on Twitter recently posted the chart below, which shows that a Bitcoin price fractal may be playing out. The fractal has four phases: horizontal consolidation marked by one fakeout, a surge above the consolidation phase, a distribution, then a strong drop to fresh lows.

If the fractal plays out in full, BTC could reach the low-$7,000s again, potentially as low as $7,100. This would represent a 20-odd percent collapse from the current price point of $8,800.

It isn’t only a fractal that is hinting Bitcoin has the potential to visit its lows. As we reported on Saturday, Bloomberg believes that if the GTI Vera Convergence Divergence Indicator flips red, a downtrend could push the cryptocurrency back to $7,300.

Related Reading: Stephen Colbert Pokes Fun at Bitcoin in Monologue: Mainstream Gone Wrong?

Can Bulls Step In?

But again, many believe it is irrational to have such bearish interpretations of the cryptocurrency’s chart at the moment. As reported by NewsBTC earlier, Popular crypto trader Mayne recently noted that the “people waiting for $6,000” are irrational. He quipped that Bitcoin retracing and consolidating after its fourth-biggest bull move in history ($7,300 to $10,500, a 42% gain) is perfectly par for the course, but noted that it’s totally possible we can go lower from $8,800.

The medium-term technicals support this.

Trader and CoinTelegraph contributor FilbFilb found that by the end of November or start of December, the 50-week and 100-week moving averages will see a “golden cross,” which he claims is far more significant” for the Bitcoin market that other technical crosses.

Also, a Bitcoin price model created using Facebook Prophet machine learning found that the leading cryptocurrency is likely to end the year at just over $12,000. What’s notable about this model is that it called the price drop to $8,000 months in advance, and forecasted a ~$7,500 price bottom for BTC.

To put a cherry on the cryptocurrency cake, Crypto Thies observed that when Bitcoin bottomed at $7,300, it bounced decisively off the 0.618 Fibonacci Retracement of the move from $3,000 to $14,000, which correlates with the two-week volume-weighted moving average. He added that summer 2019’s consolidation was marked by Bitcoin flipping major resistances into support levels, implying that a bullish reversal and subsequent continuation is likely possible in the coming weeks.

Featured Image from Shutterstock

Nick Chong , 2019-11-10 12:00:38

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