The entry of mainstream companies into the world of cryptocurrencies has been seen as a marker for the mass adoption of digital assets. With the advent of Facebook’s GlobalCoin that has become a reality as the social media giant partnered with several tech giants like Vodafone and Spotify to ensure its integration into the financial system.
The announcement of the cryptocurrency further split the proponents of the industry into two factions: one that supported the coin and one that was vehemently against the idea of Mark Zuckerberg launching a digital asset. This rift was out in the public when Peter Schiff, CEO of Euro Pacific Capital and Anthony Pompliano, the CEO of Morgan Creek Digital Capital locked horns on the GlobalCoin topic. Schiff had tweeted:
“Facebook’s new cryptocurrency “Libra” is bad news for Bitcoin. Facebook will target the very market Bitcoin is counting on for growth, the unbanked in nations with high inflation. Libra will be stable, and much easier and cheaper to use as a medium of exchange than Bitcoin.”
Schiff’s comments reflect the same sentiment shared by many in the space who speculated that Bitcoin’s speculative nature will result in its downfall. Pompliano, however, had a different opinion, stating:
“False. In fact, the exact opposite is true. Like restaurants on an intersection, the more available, the better for each of them. If you’re so confident, let’s bet 10 BTC on whether Bitcoin hits $100,000 in the next 5 years? Should be easy decision to put your money where your mouth is if you truly believe what you’re saying :)”
Schiff responded by saying that the bet was skewed against his favor because he believed Bitcoin also has the option to fall to a $100, reducing the bet prize to just $500.”
Andreas Antonopoulos, the author of Mastering Bitcoin, had taken the debate to banks, claiming that financial institutions should be very afraid of GlobalCoin. He, however, was confident that the cryptocurrency would not threaten the slots held by Bitcoin, tweeting:
“Anything that’s created by any centralized organization that is subject to specific laws, cannot achieve any of these five pillars. And the reason they cannot achieve is that the law prevents them from doing so.”