Don’t
Libra will not make you rich as a speculator for two reasons.
First it will not be a marketed traded currencies like not a financial tool like stocks, bonds, and/or Crypto. Meaning that if Libra goes up in value you will be unable to trade it to a third party for more dollars or yen.
A typical transaction will look like this
You will purchase a set number of Libra for a set dollar amount 100 Libra for 10 USD.
Then you will purchase with that Libra goods and services using Facebook as a payment processor.
Send 50 Libra to Mikey D for his new digital album.
Facebook charges Mikey D 4 Libra for the privilege of doing business with Libra.
Now you have 50 Libra left in your account and you want to convert it back to cash or possibly Crypto (no word yet on whether Facebook will support transactions to Crypto).
You may be charged 4 Libra for the privilege.
Facebook business model with Libra is clear that they want to create a stable currency for countries outside the United States and monetize through either fees now or in the future after they have dominate market share. Facebook’s intention is to become a stable store of value for countries outside the federal reserve system. If you convert Pesos, Lira, and Won to Libra your likely to maintain a high store of value against your countries inflation. If 100 Pesos buys you 100 Pesos worth of goods today, but in six months 100 Pesos buys you 80 Pesos worth of goods, you’ve lost money to inflation. If you’ve converted to Libra then your inflation rate SHOULD be lower or zero, 100 Libra buys 100 Libra because unlike your national currency Libra is control by a single non government entity and they can instantly change the conversion rate of Pesos to Libra.
Again we do not know how hard it is going to be to take your money out from Libra and back to street currency. Facebook may want you to keep Libra on it’s platform so that you use it’s coin and help them expand their market share.
Once everyone is using Libra and it is convenient Facebook may charge convenience fees. Libra may operate like early Amazon or PayPal for a period of time and not have a single fee until they’ve reached dominate market share, on par or over what PayPal has. Then it will make since whether or not to start charging fees for using Libra to conduct business.
Second Libra is only valid through the Facebook wallet. Just as Monopoly money is only valid during a game of Monopoly. Facebook is playing the banker and taking government backed currencies in exchange for Monopoly money to play with. Meaning that it will only be valid as long as Facebook and users of it’s wallet continue to play the game. Once the game is over at Facebook’s discretion or due to market forces, they can without recourse close down all access to the Libra in your wallet. Just as when it’s time to put the game away the Monopoly money goes back into the box.
TL:DR
Libra is not a Crypto and will not make you a profit like trading Bitcoin.
With Love,
Hngyhngyhppo
hngyhngyhppo 