(Kitco News) - Facebook's Libra and bitcoin are fundamentally different, and with the launching of its new cryptocurrency, the social media giant could position itself as a "bank" to billions of its users around the world, said Kiana Danial, CEO of Invest Diva and author of Cryptocurrency Investing For Dummies.
"Facebook's Libra has the reach, has all the data in the world, but what it is trying to create is something that, to me, is actually scary because it is trying to create a monopoly," Danial told Kitco News. "Facebook is going to become a central bank with a third of the population of the world."
Bitcoin vs. Gold
Danial said that bitcoin has been traded as a hedge instrument, even more so than gold.
"I'm talking about the institutions and the funds that are actively investing in cryptocurrencies, and if you just take a look at the charts you'll see that [bitcoin] has become an even stronger hedge than gold is right now," she said.
Watch the full interview and more from Kitco News
Premium Pick:3 Tariff Questions That Must Wait for Answers
Ready to Retire: The Biggest Threat to Your Retirement? Check Your Basement
TheStreet Feature:Retail Companies That Have Gone Bankrupt in 2019
Dog Days of Summer: How Consumers Will be Impacted by the September Tariffs
Catch Up: Today's Top News Videos Below
This article is commentary by an independent contributor. At the time of publication, the author held TK positions in the stocks mentioned.