Facebook Libra is dominating the news. I’ve seen countless articles online, a ton of YouTube videos, and some of my relatives are even talking about it.
Heck, my grandparents (neither of whom use Facebook) called to tell me all about Libra and how smart Mark Zuckerberg is.
Does this mean Facebook Libra is a great investment property? And if so, how can you get in on the hottest crypto currency of 2019? Today’s article answers both these questions.
Why I’m (Short-Term) Skeptic On Facebook Libra
The best investments are ones nobody is expecting or thinking about. Look back on original BitCoin, most investors who got rich did so because they bought in years ahead of Wall Street. They saw value in an under-priced asset, and it paid off.
There’s no secret value in something when your grandmother, cousin, and co-worker all know about the hottest new alt-coin.
To paraphrase Peter Schiff: “When the president Tweets about something it’s not a secret.”
Because of this, I think Libra will see a short-term price pump as speculators flood in. Then the currency will fall. However, I think this dip will be temporary. It might last months, or even years, but it will reverse.
Here’s why.
Libra is an in-house currency for one of the biggest advertising and social media platforms in the world. This means Facebook can set the rules for how much their crypto coins are worth, and what they’re used for.
Picture this: All Facebook users are allowed to send each other Libra payments (in a manner like PayPal or CashApp). However, Facebook charges a 1% transaction fee to convert your local currency into Libra. This right here can add billions of dollars to their annual revenue.
Even if Facebook’s Libra program fails to meet initial expectations, it can slowly grow and gain traction over time. This means more and more users, which translates to bigger profits.
How To Invest In Facebook Libra
Personally, I’d look at this project for the long-term. And I think the easiest way to invest in it is through buying regular shares of Facebook stock.
If the project succeeds (or is about to hang in for long-term growth), your shares gain value. And if Facebook Libra fails? Well, you still own stock in the company and this should continue to grow in value over the long-run. Facebook is a tech giant and one setback is nothing to them (think of Google stock and how it’s continued to grow despite flops like Google+).
In other words, it’s a win-win situation.
(Facebook Stock Continues To Grow Even After Numerous Issues)
Now, if you’re a new investor or curious about Facebook, try using the Robinhood App. This is a fantastic way to invest in stocks and crypto currencies. There’s no commission fees (saving you a ton of cash) and you’ll get one free stock when you sign-up through this referral link.
Anyway, that’s my analysis on Facebook Libra and I think buying direct stock in the company is one of your safest plays.
P.S. In case you missed it, here’s another Robinhood referral link where you can claim your free stock.
