why litecoin will fail

You are just one step away from creating your watchlist! Coinbase is a cryptocurrency exchangeit allows you to buy, store, and trade cryptocurrencies, which are invented kinds of alternative moneys. I am not receiving compensation for it (other than from Seeking Alpha). GameStop Moderna Pfizer Johnson & Johnson AstraZeneca Walgreens Best Buy Novavax SpaceX Tesla. "Bitcoin is a nothing-burger . why litecoin will fail. Here are 10 reasons you should avoid bitcoin like the plague. These coins are much more suitable to be used as currencies because they only fluctuate as much, or as little, as their underlying assets. But Bitcoin and its clones wont be part of it. But if the bid and ask are filled by groups working in unison to raise Bitcoin value, market economics are replaced by subterfuge. ews of the halving pushed Litecoin prices" higher, said, Joe DiPasquale, CEO ofcryptocurrency hedge fund manager, litecoin "outperformed" at the start of the year, noted, Mati Greenspan, senior market analyst for social trading platform, Now that the alt markets are sluggish, they're taking some profits off the table.". His elective coursework included a number of political science courses, including International Politics, International Organizations, European Politics and other more basic political science courses. One major cause that market observers cited wasprofit taking. This is a subscriber only feature Subscribe Now to get daily updates on WhatsApp. Govt not in 'crazy rush' to sell everything, says FM Ni As China bans women modeling lingerie, men pull it off How to use behavioral nudges to increase retirement savings, SEC is cracking down on Crypto staking. Bitcoin falls dramatically short of the scale provided by banks for payments. Transaction Costs are Too High. NOTE: Our commentaries most often tend to be event-driven. Carnegie Mellon University - David A. Tepper School of Business. Bitcoin goes DOWN. I wrote this article myself, and it expresses my own opinions. That is because you didnt buy bitcoin to use as a currency. Theyre even going to process the financial transactions of American Express. The value of Bitcoin is mainly driven by speculators followed by a euphoric momentum brought up by its investors. -- Me on twitter. Unless Bitcoin can actually buy and sell things with bigger companies, they will never actually have very much of a purpose, since blockchain technology can exist without Bitcoin. Still, for the most part, people don't believe in Litecoin, which is why LTC lost its positions, according to CoinMarketCap. However, Litecoin may still provide . Why Bitcoin will fail. "Litecoin hasnt been the same since that announcement," he stated. ", Marouane Garcon, managing director of crypto-to-crypto derivatives platformAmulet,also weighed in, stating that litecoin's recent price decline "has more to due with the concerns about development and how theyre going to be funded going forward.". There are plenty of ways for hackers to hide their identity, but for the casual user, they are not getting any added expectation of privacy from Bitcoin. He said that even if the price of one Bitcoin rises to $100,000, it would not change his opinion that it is destined for failure some day.[9]. There's nothing unique about bitcoin's underlying blockchain that other businesses couldn't one-up. In the US dollar, you will see the words legal tender", which means the same thing. The spread between the bid and ask on Bitcoin, for which the value is, at best, opaque, can vary considerably. The most valuable thing about Bitcoin is that it introduced blockchain technology to the world. Extreme volatility is a given with digital currencies like bitcoin, and history would suggest that significant downside from its current price is a near certainty as well. The reason for this is that the market isnt rational most of the time. Join the most important conversation in crypto and Web3 taking place in Austin, Texas, April 26-28. Why Bitcoin will fail. The manipulators acting as buyer and sellerscan easily boost value before cashing out and enjoying their profits. Moh Hon Meng | Published on 04 Jun 2021 Facebook Twitter LinkedIn Email Whatsapp Whatsapp. Without the miners, the Bitcoin network collapses. These are formidable powers that give the confidence that the value of the currency will be there. why litecoin will fail >>CLICK HERE<< to change your financial future! Why Bitcoin Will Fail: Wrap Up. The only value that bitcoin has is in somebody else willing to pay a price for it. If you have an ad-blocker enabled you may be blocked from proceeding. Thought about writing a blog rant, but "OMG they're all totally crazy" wasn't long enough, so here we are. An astute, data-driven observer of business, politics and economics, Mr. Collins has advised political candidates and public officials on campaign, political and policy matters for more than two decades, and has twice been a delegate to his political partys national quadrennial convention to nominate the American president. The sole exceptions are some small food vendors and an occasional fruit cart. However, even though Bitcoin was the first to introduce blockchain to the world, its not necessary for blockchain to exist. The Motley Fool owns shares of and recommends Mastercard, and has no position in any cryptocurrencies mentioned. For now, Bitcoin's value is based more on speculation than payment volume -i.e., people buy it because they believe other people are willing to buy it from them at a . al., all fail as a reliable store of value or as a medium of exchange. Summary. Can we really imagine the central banks of China, the US and the EU saying lets cancel our currencies and just use bitcoin, which no one can control"? It'll just take a moment. Litecoin intro. That the value storage argument is here for these coins too. Over the years, bitcoin has enjoyed massive success both as an asset and as a blockchain asset. Why does bitcoin continue to outperform equities? Oct 29, 2021. While theyre not necessarily one and the same, a member of Anonymous told Vice News that many of the members have left and that the organization is full of distrust. Though this lack of regulation is actually a selling point for today's crypto investors given that it provides some degree of anonymity, it's bad news if something ever goes wrong. Even beyond those obvious advantages, it is simply foolish to treat Bitcoin and its clones as a reliable store of value or a means of commercial exchange. Thealtcoin enjoyed these sharp gainsahead of the halving, which took place on August 5. Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. Over the years we've heard many reasons why Bitcoin will fail. And then, try to push that out to once every two weeks or once a month. But even if there is no mass manipulation, the market for cryptocurrency is volatile with no discernible peg, such as that of the Hong Kong Dollar (HKD). Fiat money has the value of the guarantee of the government that issues it. You may opt-out by. WalletInvestor is somewhat positive with their predictions. Blockchain can be used to reinvent supply-chain management and expedite overseas payments. Bitcoin goes UP. The application costs $5,000, and there are 500 pages of legal paperwork that would require a team of taxation lawyers to decipher. Thus, bitcoin offers the perception of scarcity without actually being scarce. Jamie founded Listverse due to an insatiable desire to share fascinating, obscure, and bizarre facts. In Coinbases privacy policy, they state that they will keep your name, address, phone number, and more for up to five years and will give it to law enforcement if there was ever a subpoena.[2]. The only matter at issue is the timing of the wide adoption. Bitcoin has no purpose and provides no benefit. When there is such a huge spotlight on an activity that is known for tax evasion, it is obviously something that law enforcement takes notice of. It doesnt matter how many vendors profess to accept it. But by depreciating the exchange value of paper currency relative to CBDC, Haldane reasoned, central bankers could effectively impose negative interest rates. Some hope that people will rise up and choose to go with Bitcoin instead of using traditional banks. If Bitcoin is in the news, its price can fluctuate hundreds of dollars in a matter of hours. [Ed note: Investing in cryptocoins or tokens is highly speculative and the market is largely unregulated. You may have heard close to thousands of times now that Bitcoin will go down, burst, plummet to 0 or get outlawed by the government. Bitcoin isn't really scarce. Crypto Join This Elite Group - Sign Up Here: https://www.huefinancial.com Follow us on Twitter @HueFin_News Follow us on Instagram Over the long term, blockchain technology is where the real value lies. We associate with principals of Technometrica on survey work in some elements of our business. Crypto critics have been expressing similar sentiments regarding Bitcoin, claiming that it is doomed to fail sooner or later. Your session has expired, please login again. For example, phone #: 123-333-4567. Thats to say nothing of all the multiple schemes fraudsters use to clone your card. He has advised domestic and foreign clients in the tax-efficient structuring of legal entities, effective tax rate planning, mergers and acquisitions, corporate reorganizations, treasury operations, financial instruments, international taxation, tax accounting under GAAP, state and local taxation, and sales and miscellaneous taxes. First of all, bitcoin is only as scarce as its programming dictates. Here are three reasons why. Mr. Collins marketing collateral and published articles have been extraordinarily well received because of his ability to present intricate and complex aspects of tax, business, policy, and politics in clear, concise, easily understandable prose devoid of jargon and irrelevant detail. "It threw everyone into a panic. Other cryptocurrencies actually have leaders to guide them. Bitcoin keeps going up lately, but eventually it will come back down, experts say. Almost all of the banks in the world use SWIFTs now-outdated technology, and they handle quadrillions of dollars. HRA Calculator: Exemption rules to claim House Rent All Tax saving guide: How to save income tax by expenses an Advance tax, PAN-Aadhaar linking: Important dates to lo Govt not in 'crazy rush' to sell everything, s As China bans women modeling lingerie, men pul How to use behavioral nudges to increase retir SEC is cracking down on Crypto staking. "Both of those currencies have large and devoted followings and developers, whereas LTC hasnot much," claimedHendricks. The longer Bitcoin exists, the more difficult it becomes to mine, or create new coins. Unlike those investors, I dont slam the cryptocurrency asset class as something with no intrinsic value. The altcoin (defined as a cryptocurrency other than bitcoin) fell to as little as $62.65 late last month, down more than 55% from its price of $146.43 in June, CoinMarketCap figures show. After realizing that taking out a home loan meant his property was never really his, a military member sold his house to buy bitcoin instead. Who is minding the store? (Opinions here with respect to whether to buy, sell, or hold such companies, however, assume the company will not change its current practices). If you like this type of content, follow me on Medium for more takes like this! He watched as the revolutionaries very literally sat around smoking weed and talking about their ideas of the future, and he left feeling as though Bitcoin was going to fail. Big players have got involved in the craze and are actively manipulating the markets through high investment and high sell-off. In that sense, it is like a piece of artwork. Its tax evasion. The Journal of Government Financial Management says that blockchain technology can truly help the financial system, but they need to see more successful examples of use cases, first. Euromoney explains Blockchain in greater detail. For the same reason, when bitcoin starts to slide, vendors will stop accepting it as payment, because they dont want the value to go down by 20% a week after. Others discuss new management strategies we believe will fail. I have no business relationship with any company whose stock is mentioned in this article. Bitcoin is also an unregulated asset. In New York, all businesses who want to accept Bitcoin are required to register for a BitLicense if they want to do business. Cinema Specialist . All over the world, homes of suspected Satoshis have been raided. I now have had my foggy crystal ball for quite a long time. July 3 2022. why litecoin will fail3 bedroom house to rent shotton. Collins spent some 30 years building a career in executive and consulting financial roles, with a particular emphasis in business taxation. Copyright HT Digital Streams Limited All rights reserved. Once the fall starts, it will come hard and fast. Ripple has their own cryptocurrency, called XRP. al. In October 2017, China declared that it was illegal to create an ICO, which stands for Initial Coin Offering. Start-up companies were learning how to use blockchain to make their own spin-off coins to raise funds. Copyright 2022 HT Digital Streams Ltd All Right Reserved. TL;DR Breakdown. The current Bitcoin market is extremely volatile. Of course not. Tim Enneking,managing director ofDigital Capital Management, also painted a less-than-optimistic picture of the digital currency. It rose from $11,000 in September to $24,000 in December, passed $40,000 in January and hit $61,000 in Marchmore than three times its 2017 peak and 19 times its most recent low in 2019 . Secure Your . I have no business relationship with any company whose stock is mentioned in this article. For one, there's the idea of scarcity. Marshall School of Business, USC. It's been a challenging year for Wall Street. Cryptocurrency is here to stay, but Bitcoin and its clones will be obsolete, probably within this decade. Supporters of bitcoin say that it will replace fiat money. filed 20 April 2021 in Economics. "Both of those currencies have large and devoted followings and developers, whereas LTC hasnot much," claimed, Marouane Garcon, managing director of crypto-to-crypto derivatives platform. If this has the remotest possibility of becoming true, it means that bitcoin is in competition with national currencies. Sort of like if one web page goes down, the Internet still exists. However, this relationship has broken [+] down lately. Its easy to read between the lines and know that what he is really saying is that they want to make their own blockchain. One person can read the same exact paragraph in the Bitcoin White Paper and come up with a totally different interpretation of Satoshis words than the next person. Even after bouncing back,the digital currency is still far below its 2019 high. Their party-crashing resulted in successfully adopting hundreds of new banking partners to use their technology. Since the majority of cryptocurrency trading and transactions occur outside the borders of the United States, the Securities and Exchange Commission is very limited in what it can do if your digital tokens are ever stolen. Many have brushed it off for years, saying that it was a fad that would disappear as quickly as the value of Beanie Babies. Now, coders and miners must come to a consensus every time a decision about Bitcoins future must be made. 3. When the price went to a predetermined point, the Kennedy pool would short the stock, pop the bubble by halting its wash sale trades, sell, and let the price collapse, cleaning up on their short positions. Save my name, email, and website in this browser for the next time I comment. Thats it. This is pure profit taking by people who are smart enough to know that LTC is neither bitcoin, nor is it ethereum," he stated. That plan, known as SegWit2x, was eventually called off, and it resulted in another sharp spike in the price of the original Bitcoin.[8]. "Bitcoin, however, will not go away, because it is actually decentralised and it is still very much in demand as a replacement for legacy money . Predict the closing value of sensex and win free subscription. (For the uninitiated, the ZLB effectively signals the end of monetary policy; pushing on a string, as Milton Friedman put it, no longer works to stimulate growth.). Bitcoin price analysis shows a bearish market sentiment BTC price has sought support at $20,000 After a startling 5% BTC rate loss overnight, traders are filled with doubt and Bitcoin's RSI has returned to the starting point. You would just use fiat money. For example, Mastercard (MA 1.67%) was awarded a patent in July 2018 "for linkage of blockchain-based assets to fiat currency amounts." (Things obviously get more tricky when you're buying and selling in foreign currencies, and fraud in those transactions is as possible as it is with Bitcoin or any other commodity used as a means of payment. Vitalik Buterin is the boy genius creator of Ethereum. As an example, Bloomberg which reported about the double spend and how Bitcoin might reach a value of USD 0, published another article about why Bitcoin will fail as a currency to stand their ground after the double-spend incident turned out to be wrong. Dipasquale summed this up nicely, stating that: "Litecoin's price action has historically followed Bitcoin's, but currently LTC is facing negativity on multiple fronts.". Its much easier to imagine a worthless, privately issued, cryptocurrency.). But with state backed currency of ones own nation, there is no issue of capital gain or loss. Close Menu. Now, does this mean that you cant make money off the Bitcoin rallies and institutional investing? If one revolutionary group like Anonymous can fall apart, whats to stop Bitcoin from suffering the same fate? Not a member yet? why litecoin will fail. Business, Economics, and Finance. Finscreener. Opinions expressed by Forbes Contributors are their own. "We have seen a very strong correlation between tweet volumes and market cap of Litecoin," saidJoshua Frank, cofounder of TheTIE.io. [1] No one could have ever imagined that that seemingly unimpressive page would evolve into what has now become what the Internet is today. I wrote this article myself, and it expresses my own opinions. Here are 10 reasons you should avoid bitcoin like the plague. Why Bitcoin Will Fail . Pretty nifty I would say. If you ever made a transaction in Bitcoin from one wallet to another, you know what Im talking about. This implies there may not be any need for a made-up digital token to be used at all on blockchain networks. The Mumbai collector building the city a blue- Bajaj Electricals bags 565 cr contract from Market likely to track global cues next week: Sale of gold jewellery hallmarked with 6-digit After Turkeys earthquakes, many families scra Elon Musks latest reveal? As a result,litecoin "outperformed" at the start of the year, notedMati Greenspan, senior market analyst for social trading platformeToro. A Landmark NFT Lawsuit Seeks To Determine How Creators, Owners, And Investors Can Protect Their Intellectual Property And Monetize Assets Moving Forward, Cryptocurrency Bill Will Mitigate Key Risks For Web3 Investors, If It Can Pass. Dec 28 "The Great Bitcoin Scam" - Forbes . It was the first currency to hit $100, then $1000, and so on. His expertise as a champion debater and orator in his student days, along with his savvy marketing expertise, has allowed Mr. Collins to coach private and public sector executives and candidates on public speaking, speech writing, message development and successful business presentations. why litecoin will fail. Display any widget here. Another beef with bitcoin is that there's no tangible way to value it as an asset. What does this mean? If there are stocks you know you want to buy . Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services. Active revolutionaries who are pushing for a collapse are in short supply. Right now, people are building bitcoin according to what is currently true, and what has been true in the past. Most Bitcoin exchanges like Coinbase require that new users must upload the front and back of a Photo ID as well as take a selfie to prove that its really them. Without any clear vision of where Bitcoin is going, there is very little for an investor to count on or to have faith in. Another risk factor is that while Bitcoin was first-to-market and the most well-known, its value depends on its first-to-market brand name. Another, newer, better, cryptocurrency could displace it just as MySpace was replaced by Facebook (FB) and Google (GOOG) (GOOGL) displaced Yahoo. Last Updated on June 19, 2022 by . Posted on 07.3.22 . There is no control or central authority that oversees the transactions. At the moment, the one and only digital currency that is actually working with the US Federal Reserve is a company called Ripple. Many old-school investors who havent done their research will simply say its in an economic bubble and call it a day. Mind you, we've already witnessed multiple 80%-plus declines in bitcoin throughout its history. Name *. If its price continues to drop and the mining costs do not fall to the same extent, the incentives to update the public ledger and validate transactions can quickly . Cryptocurrency got a really bad reputation once news broke that Bitcoin was being used to send money anonymously on the drug trafficking website Silk Road. They predict that LTC will get as high as $153.301 by 2023. There's minimal utility here. It was mostly fear of a mostly unknown virus that people were led to believe could infect surfaces. Clearly, the reasons why Bitcoin will fail are outnumbered by the reasons Bitcoin will succeed. Specifically, no businesses are willing to make the costly and time-consuming switch to blockchain without the technology being broadly tested -- yet companies aren't willing to make this initial leap to test the technology and prove its scalability. At the October 2017 SIBOS, SWIFT CEO Gottfried Leibbrandt said during an interview that their company is trying to come out with a technology that will improve security, anonymity, and speed. From tracking payments to avoid criminal activity, to more direct and effective monetary policy, to piercing the barrier of the ZLB, to aiding in the elimination of tax fraud, CBDC clearly benefits the national interest. Shannon Quinn (shannquinn.com) is a writer and entrepreneur from the Philadelphia area. Bitcoin Falls Under $35,000 As China Bans Crypto On May 19 , 2021. "In a market where altcoins have consistently underperformed Bitcoin for about 18 months and given that we have been consolidating for some time, the move is probably more than just traders taking profits and rotating into assets with historically better yields, but rather due to investors cutting losses while they have the chance," he stated. For people outside of the complex and exciting world of cryptocurrency, Bitcoin can be hard to understand. Whereas physical metals, such as . After Lee disclosed this information, "peoples perspective of Litecoin changed," maintained Garcon. "In the absence of new capital flow, transaction volumes have remained tame and the August halving has failed to push the price higher," he added. In fact, on the Indian rupee note, you will see a promise to pay the bearer" issued by the RBI governor. During the last weeks I've read dozens of forum posts from people suggesting to use Litecoins instead of Bitcoins. Like that time Elon Musk made a tweet about Signal and a completely unrelated company with a similar name jumped 1100%. On March 1, the crypto market capitalization (TOTALCAP) was rejected by the $1.04 trillion resistance area. Join Us!!! Bitcoin is commonly viewed as the "currency" of choice for criminal organizations. 2 India's Bitcoin Kidnappings. The cost of getting started as a new miner is so far out of reach for the average person that the main miners are gigantic warehouses in China. Campaign collateral he developed for political campaigns has been used in university courses as an excellent example of persuasive campaign advertising. Youre reading a free article with opinions that may differ from The Motley Fools Premium Investing Services. *FREE* shipping on qualifying offers. 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