Facebook, Inc. (NASDAQ:FB) cryptocurrency heralds the rise of the corporation-government
Facebook’s cryptocurrency, officially unveiled on Tuesday, heralds the rise of the corporation-government, potentially shaping the already vast powers of the Silicon Valley giants into a borderless, unaccountable techno-oligarchy.
The crystal ball is dark, and we should be afraid.
Facebook’s cryptocurrency, Libra, is to be used in a standalone application or its messaging platform, à la China’s popular WeChat. If greenlit by regulators, that pushes the technology world past a significant and dangerous threshold – it was already powerful, and we knew it, but never like this.
Silicon Valley has risen to lure top talent from Wall Street and rival it for business-world top dog. Its power grows as we conduct more of our lives online, even as our reliance on banking hasn’t changed much. But while there has been significant cross-pollination, the two camps have mostly kept to their own lanes – until now.
WeChat Pay has become so prevalent in China that anyone using cash is instantly marked as a tourist. Facebook’s pseudo-Bitcoin has the potential to do that for the rest of the world – and more. It is already emblematic of a wider tech invasion in finance. More may follow.
And by going a huge step further than WeChat to issue its own money – a mere launchpad to what will perhaps be even more Facebook financial services, even as it says it will not try to replace large central banks – the social media giant is becoming a quasi-government.
The main communications platform for millions, if not billions, Facebook already holds the keys to our speech, our inner thoughts and our perception of reality. It holds sway over elections. Now it may hold our wallets, too. Facebook said it will not combine and parse all that priceless data, but who can stop it if it does? When news broke, a concerned US Senate sought out the company for more information.
It is ironic Facebook is moving into cryptocurrency, which is supposed to operate without a centralized authority, precisely to prevent an unaccountable administrator from holding power over users.
That belief is on full display in the motivations of Vitalik Buterin, gamer and creator of the second-biggest cryptocurrency: “Blizzard removed the damage component from my beloved warlock’s Siphon Life spell. I cried myself to sleep, and on that day I realized what horrors centralized services can bring.”
To cast that spell requires a player to reach Level 30 in World of Warcraft, which takes effort. To Buterin, removing the spell, just like that, was as if one day, the government just deemed your diploma invalid.
Many governments cannot easily do that because of checks and balances, the rule of law and our inherent rights. But online – where many increasingly live and, to them, no less real than the physical world – we submit unconditionally to the internet masters.
Facebook has perhaps sensed how that concern might extend to its cryptocurrency. The company said a subsidiary would facilitate transactions, and an independent association in the neutral Switzerland will oversee it. To Facebook’s credit, Libra is more decentralized than expected.
But the association’s barrier of entry is high. Although there are alternative conditions, one is $1bn in market value. The body currently includes cryptocurrency companies and even not-for-profit groups, but also has the expected Visa, Mastercard, PayPal, eBay and Uber.
Many of them are chummy. They invest in each other, and their workers jump ship back and forth. How independent the body is remains to be seen.
It may not begin today, but this is the potential start of a new corporatocracy. It is not so much that the interests of giant companies could be dominating governments – those companies are becoming their own domains, which they rule as they see fit.
They already roam relatively unchecked. Scandal after scandal has come out of Facebook. But unable to be deposed by even his own shareholders, Mark Zuckerberg has been snubbing parliamentary summons almost like a head of state who will meet only another head of state. All the while, Facebook easily absorbs fines. It also absorbs defecting government officials. And its stock keeps rising.
US lawmakers have launched antitrust investigations to potentially break up Google, Amazon and Facebook, the goliaths that they feel have gotten too big. But Zuckerberg has doubled down, merging his WhatsApp with the messaging platforms of Facebook and Instagram, both a deft move and a middle finger.
As technology companies grow bigger and bolder, any potential scandal will be amplified. The digital serfs of the future may point to this moment as a turning point: when Facebook started printing its own money.
Overall, the bias in prices is: Upwards.
The projected upper bound is: 198.63.
The projected lower bound is: 176.83.
The projected closing price is: 187.73.
A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 7 white candles and 3 black candles for a net of 4 white candles. During the past 50 bars, there have been 27 white candles and 23 black candles for a net of 4 white candles.
A long lower shadow occurred. This is typically a bullish signal (particularly when it occurs near a low price level, at a support level, or when the security is oversold).
An on-neck line occurred. This is a bearish pattern where prices should move lower when the white candlestick’s (i.e., the most recent) low is penetrated.
A spinning top occurred (a spinning top is a candle with a small real body). Spinning tops identify a session in which there is little price action (as defined by the difference between the open and the close). During a rally or near new highs, a spinning top can be a sign that prices are losing momentum and the bulls may be in trouble.
Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.
One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 76.6299. This is not an overbought or oversold reading. The last signal was a sell 0 period(s) ago.
Relative Strength Index (RSI)
The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 59.39. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a buy 11 period(s) ago.
Commodity Channel Index (CCI)
The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is 109.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a buy 8 period(s) ago.
The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 5 period(s) ago.
Rex Takasugi – TD Profile
FACEBOOK INC A closed down -0.990 at 187.480. Volume was 24% above average (neutral) and Bollinger Bands were 27% wider than normal.
Open High Low Close Volume___
187.000 188.100 184.550 187.480 21,417,092
Short Term: Overbought
Intermediate Term: Bearish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 179.34 182.71 161.53
Volatility: 32 39 42
Volume: 19,457,364 17,775,692 22,106,684
Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.
FACEBOOK INC A is currently 16.1% above its 200-period moving average and is in an downward trend. Volatility is high as compared to the average volatility over the last 10 periods. Our volume indicators reflect volume flowing into and out of FB.O at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bearish on FB.O and have had this outlook for the last 22 periods.
Latest posts by HEFFX Australia (see all)
- Top 10 Spectacular Trips of a Lifetime - July 17, 2019
- eBay Inc. Reports Second Quarter Results - July 17, 2019
- United Security Bancshares reports 2nd quarter net income of $4.1 million - July 17, 2019