Facebook, Inc. (NASDAQ:FB) Libra is an ambitious plan to replace the US dollar as the primary currency for online and international transactions
Let me put it this way – both Bitcoin (BTC-USD) and Facebook (FB) want to replace the world’s benchmark currency, but one wants to leave power in the hands of the people through a completely decentralized platform while the other is nearly completely controlled by a single person – Mark Zuckerberg. Facebook stands a real chance at achieving the Bitcoin community’s original vision (without adhering to any of its fundamental values).
Despite the departure from the core values of the blockchain community, Facebook could pull off this monstrously ambitious mission and create a valuable asset for investors out of thin air. Here’s why:
With 2.38 billion monthly active users, no other corporation comes close to replicating Facebook’s immense scale. In fact, if the company were a country, it would be the most populated country on the planet.
Indeed, most nation states don’t have access to the sort of data Facebook does on its regular users. In some ways, that makes Zuckerberg (who owns majority voting shares) one of the most powerful people on the planet. Introducing a currency to the FB ecosystem just seems like the natural evolution of this platform.
In 2018, Facebook reportedly spent more on lobbying efforts than it had ever before. $12.62 million over the course of a year might not sound like much, but when compared to Lockheed Martin’s (LMT) $13.2 million and Boeing’s (NYSE:BA) $15.1 million over the same year, you can see how substantial Facebook’s influence in Washington really is.
Also, Facebook has more than enough firepower to expand its lobbying efforts in the coming years. Even if they double or triple the lobbying budget, it would barely push the needle for their bottom line or cash hoard. Considering all the political opposition the company has been facing over its privacy issues and the new cryptocurrency project, expect them to deploy more cash for Congress than ever before.
Facebook’s game plan is simple. Look for emerging technologies or platforms that have network effects, try to launch a similar platform or simply acquire the competition. This game plan worked for WhatsApp and Instagram, both of whom were acquired after Facebook’s native apps failed to gain as much traction. Zuckerberg also tried acquiring Snapchat (SNAP), but when he failed, his team simply started integrating Snapchat features into Instagram to piggyback off the same network effects.
Currency is the ultimate network. At the moment, the US dollar is the global standard simply because there isn’t a single person or entity that would refuse to accept it for payment. Facebook appreciates this network effect and will try relentlessly to replicate it.
They already have examples of Alipay in China and M-pesa in Kenya to build on. Then there’s the undeniable allure of disrupting the $500 billion global remittance industry, the nearly $3 trillion global payments industry, and the $6.6 trillion financial services industry.
Overall, the bias in prices is: Upwards.
By the way, prices are vulnerable to a correction towards 181.71.
The projected upper bound is: 198.85.
The projected lower bound is: 176.79.
The projected closing price is: 187.82.
A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 6 white candles and 4 black candles for a net of 2 white candles. During the past 50 bars, there have been 26 white candles and 24 black candles for a net of 2 white candles.
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 48.6580. This is not an overbought or oversold reading. The last signal was a sell 5 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 56.34. 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 16 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 49. This is not a topping or bottoming area. The last signal was a sell 1 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 10 period(s) ago.
Rex Takasugi – TD Profile
FACEBOOK INC A closed down -1.180 at 187.660. Volume was 27% below average (neutral) and Bollinger Bands were 59% wider than normal.
Open High Low Close Volume___
189.540 190.760 187.310 187.660 12,808,604
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 187.35 183.87 162.08
Volatility: 31 39 42
Volume: 19,993,034 18,171,026 21,794,376
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 15.8% above its 200-period moving average and is in an upward 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 bullish on FB.O and have had this outlook for the last 4 periods.