Cardano Founder Predicts They Will Outperform Facebook In Emerging Markets

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Hoskinson holds the opinion that Facebook’s Libra will struggle to break into some countries where it is largely unknown and that the social media giant has nothing tangible to offer the people in these countries.

Founder of Cardano, Charles Hoskinson, thinks that Cardano will perform better than Facebook’s Libra in emerging markets. Hoskinson says that emerging markets are where cryptocurrencies matter the most and where their success is most likely to come from. Hoskinson gives the opinion that Facebook does not have anything to offer people in emerging markets where they are unknown and they would need to forge a relationship with users of cryptocurrency in these regions. He says that the developed world has a highly regulated market and in many cases it is rigged in favor of companies such as Facebook. Companies such as Cardano would never be able to compete in that market. Emerging markets are a different ball game and offer a much more even playing field. 

Making a comparison between Facebook’s potential pitch in emerging markets and what Cardano offers these same markets, Hoskinson said that Libra will only offer these markets less fees in their transactions and nothing more. In fact, Facebook would come with an economic monopoly that gives nothing in return. Cardano on the other hand would rebuild these countries’ systems and give the people fraud free land registrations, better voting systems and improving supply chains for example. These relationship building factors are absent between Facebook and the markets according to the founder of Cardano. If this argument is accurate, crypto trading in emerging markets would suit Cardano more than it would Libra. 

Does Hoskinson’s Claim Hold Water?

It is true that cryptocurrencies perform better in emerging markets due to the freedom that the regulations in these markets offer. The economies in emerging markets also have some characteristics which make cryptocurrencies easier to adopt in them than in developed economies. Stablecoins are able to offer people in emerging markets protection against inflation, for example, as they are not susceptible to the economic conditions in these countries. People would buy cryptocurrencies as a way to counter the negative economic factors they face.

Facebook’s Libra, by focusing on payment systems and e-commerce, is designed to offer people an easier way to make payments across the world. Through Libra, people will be able to make seamless and immediate payments from wherever they are in the world. Even people who do not have bank accounts or who do not have the means to make international payments will be able to make these payments using Libra. This might be a big selling point of Libra even in emerging markets. 

The Bottom Line 

There are the number of factors to look at that will determine how a cryptocurrency will perform in a market. Cryptocurrencies fair better in emerging markets because that’s where they have the most to offer to the people. Strictly regulated environments in developed countries make it more difficult for cryptocurrencies to perform in these economies. Libra may have some difficulties in penetrating emerging markets but it has a lot to offer people in these markets. Companies like Cardano also have their own offerings which make them likely to succeed in emerging markets.

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About Ali Raza

A journalist, with experience in web journalism and marketing. Ali holds a master degree in finance and enjoys writing about cryptocurrencies and fintech. Ali’s work has been published on a number of cryptocurrency publications.