Facebooks Crypto Currency Is Libra Kicking Bitcoin off the Throne?

Aufwärtstrend bei Kryptowährungen im 1. Halbjahr 2019. 
Stand 18.06.2019

Facebook's plans to bring its own crypto currency, Libra, to the market next year have made waves both nationally and internationally.

But the timing for the launch of the Libra couldn't be better: Although the market capitalization of all crypto currencies fell by 483.7 billion US dollars to 130.5 billion US dollars after the record year 2017, strong growth in investments in blockchain solutions is forecast.

According to Statista forecasts, this will rise to 11.65 billion US dollars by 2022. This would mean an increase of 468 percent compared to 2018. The front-runners in terms of investments are and will remain the USA (2018: 0.6 billion US dollars; 2022: 4.2 billion US dollars), followed by Western Europe (2018: 0.5 billion US dollars; 2022: 2.9 billion US dollars).

Facebook's entry into the crypto currency market also comes at a time when Bitcoin is weakening in terms of its market capitalization: since 2015, Bitcoin's market share has declined by 38 percent to just 53 percent. This may also be due to the fact that more and more crypto currencies have been coming onto the market since 2014.

It remains to be seen to what extent the real launch of the Libra will influence Bitcoin and its market position in the long term. In the short term, the announcement of the social media group alone has led to Bitcoin gaining in value. Not only is the first publicly traded crypto currency by far the best-known of all digital currencies (71 percent of US citizens surveyed know the Bitcoin, only 13 percent have heard of Ethereum), the Bitcoin is also supported by around 92 percent of all crypto currency exchanges.