Bitcoin is also an unregulated asset. They insisted that his father, a wealthy investor, pay 100 Bitcoin ($2.3m) for his son's return. Bitcoin has no purpose and provides no benefit. Cryptocurrency can be the future . Bitcoin goes DOWN. If you like this type of content, follow me on Medium for more takes like this! The possibility of manipulation by such modern day pools should trouble holders. Contrarily, I think the appeal of decentralized money, not controlled by big banks or the government, is the fuel of the crypto rally. But stopping criminals and collecting taxes due is not just the only advantage of CBDC. There is none. Filler. Even if they could change everything in an instant, would they really be prepared to push the big red button to begin the end of the world? I believe investors are also placing their faith in the wrong asset. Moh Hon Meng | Published on 04 Jun 2021 Facebook Twitter LinkedIn Email Whatsapp Whatsapp. why litecoin will fail. The longer Bitcoin exists, the longer it takes for these computer systems to process the information. Central banks go into the international monetary markets to perform market operations", which is to buy or sell their national currencies in order to keep them stable. Bitcoin has a promising future as a store of value and a part of the world's monetary system. Earlier this year, Charlie Lee, creator of litecoin, reportedly toldLitecoin Foundation directorFranklyn Richards that"no one is interested in working on Litecoin protocol development work, according toTrustnodes. More engineers, investors, and advocates join its ranks everyday. when men like Joseph P. Kennedy (President John Kennedys father and the patriarch of the famous American political family) and his associates manipulated markets with then-legal hump n dump trading pools. Everyone's Down on Block. In 2014, the IRS released a guideline that anyone who profits from digital currency needs to pay taxes in the same way that anyone selling their stocks or bonds must pay their taxes. So those who believe bitcoin is destined to replace the dollar as the premier international reserve and settlement currency, and investing in it for that reason, are essentially betting on the . "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. Over the years, bitcoin has enjoyed massive success both as an asset and as a blockchain asset. Litecoin prices, which have enjoyed a sustained rally over the last several months, have climbed more than 1,700% year-to-date (YTD). In contrast, Ripples coin XRP settles 1,500 transactions every second, and they have the technology and infrastructure to make sure that theyll never slow down. A Tool for Central Bank Monetary Management. There is a lot of excitement surrounding Bitcoin and cryptocurrencies, but we would like to sound a cautionary bell against investing in them. They are in charge of what the world currently uses for banking transfers. What does this mean? A majority of crypto enthusiasts have always believed that Bitcoin is the only cryptocurrency that is truly worth investing in. First of all, bitcoin is only as scarce as its programming dictates. This could prove somewhat accurate with the pandemic highlighting the potential for physical cash to be a carrier of harmful germs. 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 basis of the things you buy with it is the price you paid for them. Both Buterin and Garlinghouse met with central banks and the Federal Reserve in October 2017, but Bitcoin did not have a seat, because there is no leader to represent them. Most people never saw the very first website that was ever created. Investing in bitcoin is not investing in blockchain tech. Yet, experts still claim the cryptocurrency is not sustainable fiat in the long term. [1] No one could have ever imagined that that seemingly unimpressive page would evolve into what has now become what the Internet is today. why litecoin will fail >>CLICK HERE<< to change your financial future! Name *. Here are the top reasons. (Opinions here with respect to whether to buy, sell, or hold such companies, however, assume the company will not change its current practices). Copyright HT Digital Streams Limited All rights reserved. He has been a guest speaker on numerous national radio and television stations and is a five time published author. 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. run on Blockchain technology that purports to be and likely is invulnerable to hacks because what amounts to an electronic ledger is shared instantaneously among all users. In 2015, for example, the Bank of England Chief Economist, Andy Haldane, suggested CBDC as a means of setting rates at the Zero Lower Bound (ZLB), a zero or sub-zero interest rate. But one investment that hasn't been phased by the coronavirus pandemic or heightened volatility is the cryptocurrency bitcoin. If Bitcoin is in the news, its price can fluctuate hundreds of dollars in a matter of hours. Just like any other speculative asset, no one really knows what is going to happen in the future. Down More Than 90% From the Peak, Is Lemonade a Buy After Earnings? BUT, let's. There's minimal utility here. 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. However, Litecoin may still provide . Transaction Costs are Too High. Here's Why I Love It, Is the 2023 Market Rally in Trouble? They are mostly written from a public policy, economic, or political/geopolitical perspective. In that sense, it is like a piece of artwork. Harvard-educated Brad Garlinghouse is the CEO of Ripple. If this has the remotest possibility of becoming true, it means that bitcoin is in competition with national currencies. Statements herein do not represent, and should not be considered to be, investment advice. Join the most important conversation in crypto and Web3 taking place in Austin, Texas, April 26-28. Cardano has a capped market supply and a staking rewards system that encourages decentralization and management of the network by its members alone. You wouldnt pay in bitcoin because your fear is that two weeks later, bitcoins value goes up by 20%. 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 . This is an opinion editorial by Mickey Koss, a West Point graduate with a degree in economics. "This is pure profit taking by people who are smart enough to know that LTC is neither bitcoin, nor is it ethereum," he stated. It was the first digital token to catch on with investors, and happens to be the largest on a market-cap basis by a significant amount (it's five times the size of Ethereum, the second-largest cryptocurrency by market cap). On Aug. 15, Kate Waltman, a CPA specializing in crypto, told Time NextAdvisor that many experts predict that Bitcoin will hit $100,000 in 2022. Crypto I think the most likely way that bitcoin fails is that the people in power simply change the rules, as they have been known to do. But there is resistance to CBDC largely from incumbent commercial banks because narrow banks, which would be more easily enabled by CBDC, would largely upset their business model. NEW YORK (March 21) Its troubling to see so many young investors buying into Bitcoin and its lesser-known clones. I am a financial writer and editor who focuses on investments. I wrote this article myself, and it expresses my own opinions. Supporters of bitcoin say that it will replace fiat money. Display any widget here. Over the years we've heard many reasons why Bitcoin will fail. No matter how excited investors are about bitcoin and its underlying blockchain, history suggests it won't be enough to match lofty expectations. As Bitcoin gained market traction, it became more difficult, expensive, and slow; now that it has dropped to its lowest point in 18 months, some are questioning its worth. Dec 29 "Why bitcoin investors are like stamp collectors" - The Sidney Morning Herald | $14,617.28. It is not a currency, it is not a store of value, it is not an inflation . Euromoney explains Blockchain in greater detail. So far, so good, right? And who hasnt fumbled around looking for a credit card that weve left at some other vendor by mistake, often tens and sometimes even thousands of miles away? 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. If the Great Depression and the 2008 recession were any clue about the future, people will sell without hesitation if they lose faith in Bitcoin. Here are three reasons why. Haldane reiterated his view favoring the concept of CBDC in another speech last November, especially noting the greater viability of CBDC as a payment platform in narrow banking, a hypothetical banking model in which a narrow banking entity would solicit deposits, invest 100% of them in safe Federal Reserve deposits, and pay out depositors interest at a rate that is higher than commercial banks. At the time, the ZLB was being discussed among economists at the Bank of England, the European Central Bank and even some at the Federal Reserve. The current slide of Bitcoin and other cryptocurrencies is being caused by a combination of short-term and long-term inputs, including larger financial markets and the crashing of a major . Why Bitcoin will fail. What casual Bitcoin users dont seem to understand is that even though their name is protected as a string of numbers and letters on the public ledger, that doesnt mean they are fully anonymous. Making the world smarter, happier, and richer. Photo by Andr Franois McKenzie via Unsplash. 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. 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. Experts' forecasts suggest that by the end of this year, in December of 2023, BTC will have a value of nearly $13,000. Even after bouncing back,the digital currency is still far below its 2019 high. Since then, it has performed better. Dec 28 "The Great Bitcoin Scam" - Forbes . A sixth issue is that blockchain is still years away from gaining real relevance. Checking with friends and colleagues, that seems to have been the case for most people in metropolitan areas. The Bid:Ask will collapse. scoop wilson county . 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. 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 . Additional disclosure: The views expressed, including the outcome of future events, are the opinions of the firm and its management only as of March 21, 2021, and will not be revised for events after this document was submitted to Seeking Alpha editors for publication. When the dust settles and the emotions fade away, pragmatism will become much more relevant, and these currencies will show their true potential. Looks like you have exceeded the limit to bookmark the image. it prompted the attention of important figures of the modern world, such as Elon Musk, as the Tesla Technoking made an infamous $1.5 billion. Litecoin hasnt been the same since that announcement," he stated. 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. I am not confident that this future will come based on the reasons above. As we saw with the GameStop (GME) short squeeze, a relatively small group of traders can manipulate pricing of any asset. (As used in this article and any of our replies, all private cryptocurrencies fall within the definition of "Bitcoin", unless otherwise stated or as readers can derive from the context.). If there are stocks you know you want to buy . The application costs $5,000, and there are 500 pages of legal paperwork that would require a team of taxation lawyers to decipher. Better yet, hit "like" and then hit the "Follow" button to the right of my photo in the same vicinity. Bitcoin et. All over the world, homes of suspected Satoshis have been raided. The Bitcoin price is down today as crypto markets react to fresh FTX fallout, and BTC bulls are unable to defend . It is a common criticism made against the viability of Bitcoin . The Motley Fool owns shares of and recommends Mastercard, and has no position in any cryptocurrencies mentioned. The fact that the digital cash system has simply existed for this long is a grand . If the debit is recorded on the ledger, the transaction is written in stone. Bitcoin can be sent from one person to another without a middleman, and it encrypts everyones identity to a long string of letters and numbers called a wallet. Blockchain is a big deal. WHY BITCOIN WILL FAIL: foreword by Craig S Wrong 3. Once investigation agencies all over the world began searching for him, Satoshi Nakamoto disappeared. Manmohan Aseri. It is in competition with national currencies. 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). I am not receiving compensation for it (other than from Seeking Alpha). He will also address the recently skyrocketing price of bitco. 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. Cryptocurrency is here to stay, but Bitcoin and its clones will be obsolete, probably within this decade. Bitcoin has many issues and will at some point fail. Right now, people are building bitcoin according to what is currently true, and what has been true in the past. I now have had my foggy crystal ball for quite a long time. "Litecoin hasnt been the same since that announcement," he stated. Let's cut to the chase, With China & other various countries banning crypto, Unless it's regulated by the government, it will fail. To build on this point, companies are also testing blockchain that's tethered to fiat currencies. Now, coders and miners must come to a consensus every time a decision about Bitcoins future must be made. Learn More. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Ripple was so confident that they can beat SWIFT that they they purposely scheduled their own conference, called SWELL, at the same time and location as SIBOS. Oops! In 2021 alone: And yet, zooming out of the hype, I believe Bitcoin will not be the big winner of the crypto-race. It's not out of the question that programmers, with overwhelming community support, could choose to increase bitcoin's token limit at some point in the future. The rise of CBDC will destroy the value of private cryptocurrencies, which are already highly vulnerable as a means of exchange and a store of value. why litecoin will fail. 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. Only 21 million bitcoin tokens can be mined, which creates a level of scarcity that pushes up the value of these digital tokens. This produced an extended upper wick (red icon). Since the Bitcoin founder Satoshi Nakamoto is no longer publishing his opinions, all coders have left is the documentation he left behind. Without the miners, the Bitcoin network collapses. filed 20 April 2021 in Economics. "Now that the alt markets are sluggish, they're taking some profits off the table.". Frank added that "LTC is also experiencing the largest drop in long-term sentiment among any of the largest coins.". Its predictions are invariably gloomy and usually correct, but I am quite used to that and they won't keep . Other cryptocurrencies actually have leaders to guide them. There is no control or central authority that oversees the transactions. You are just one step away from creating your watchlist! Little did investors foresee the Catch-22 that would arise. The chart below helps illustrate the relationship between the digital currency's 30-day average tweet volume and its market capitalization: Litecoin's 30-day average tweet volume charted against its market cap. This implies there may not be any need for a made-up digital token to be used at all on blockchain networks. 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]. 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. And yet, in 2021, a new bull rally brought it to the historic height of $65.000 per coin.. As the flagship symbol of the cryptocurrency asset class, Bitcoin slammed bear prediction after bear prediction. Posted on 07.3.22 . The reason for this is that the market isnt rational most of the time. The sole exceptions are some small food vendors and an occasional fruit cart. During the last weeks I've read dozens of forum posts from people suggesting to use Litecoins instead of Bitcoins. The manipulators acting as buyer and sellerscan easily boost value before cashing out and enjoying their profits. 2 India's Bitcoin Kidnappings. 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. 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. While there are many compelling theories about his true identity, no one knows exactly who he is. Ask a skeptic, and they'll tell you it's a bubble that's about to pop. With the rise of peer-to-peer payment platforms, bitcoin looks to become the superior digital currency. Bitcoin keeps going up lately, but eventually it will come back down, experts say. why litecoin will fail >>CLICK HERE<< to change your financial future! Since . Michael Lewis, the author of Moneyball, was encouraged to talk to these Bitcoin revolutionaries in Silicon Valley, because it might make for good material for another book. al. Hype and media attention are temporary, though. But in the coming cryptocurrency economy, those transactions will be miniscule compared to the transactions that could be made with Bitcoin if it is not arrested by CBDC.). For example, phone #: 123-333-4567. Litecoin intro. For example, if you bought a single bitcoin token at $11,000, then used a fraction of your bitcoin to buy a new smartphone for $1,000, you'd have to calculate the value of your bitcoin used at the time of the transaction and recognize capital gains or losses relative to your cost basis. Why Bitcoin Will Fail. To date, only 18.51 million bitcoin tokens are in circulation, with an estimated 40% of these held by small group of investors. Consequent years are also predicted to be positive, with LTC being valued at $352.793 by 2027. (The same, of course, can be said of Gold and Silver, but one would find it hard to imagine those commodities would be completely worthless because of their commercial applications in manufacturing. By no means are cryptocurrencies the only asset to be hacked by thieves, but there are serious fraud and theft concerns that accompany bitcoin. It's a gigantic headache. This piece is to explain why you shouldnt invest in Bitcoin, et. Answer (1 of 19): Just to throw out a contrarian view - sure bitcoin can fail. The one percent arent threatened by Ripple the way they are by Bitcoin. Read more about currencies on 10 Banknotes With Hidden Images And Symbols and 10 Strange Forms Of Ancient Currency. "Of course, traders are taking profits from an asset with no mass appeal, an ever-expanding competitive landscape, no exciting developments to rally around and a founder with no skin in the game. On a year-to-date basis, through Wednesday evening, Oct. 14, bitcoin was up just shy of 60%. (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. At this point in time, the only way to truly have an anonymous and untraceable financial transaction is with cold, hard cash. Of course not. 5 Time And Mining Problems. Why Is Annaly Capital Management's Dividend So High? "Bitcoin is a nothing-burger . In our view, Bitcoin is a bit like the Wild West of investing, back to the days before there was an SEC. Central Bank Digital Currency, or CBDC, has been a notion since at least the mid-to-early 2010s. We associate with principals of Technometrica on survey work in some elements of our business. Litecoin was created back on 7th Oct 2011 by Charlie Lee, an ex-Google employee, who quit working in order to focus on Litecoin full time.Charlie is very active on Twitter. Contents. Your session has expired, please login again. On the other hand, cryptocurrencies like Ethereum and Cardano claim to be second and third-generation blockchain, capable of additional functions and transfer speeds that Bitcoin is not. why litecoin will fail. Cinema Specialist . Predict the closing value of sensex and win free subscription. Mind you, we've already witnessed multiple 80%-plus declines in bitcoin throughout its history. And then, try to push that out to once every two weeks or once a month. His experience spans a diverse array of industries, including private equity, motion pictures and music entertainment, fashion, real estate, publishing, technology development, retail, and oil and gas. "News of the halving pushed Litecoin prices" higher, saidJoe DiPasquale, CEO ofcryptocurrency hedge fund managerBitBull Capital, after which traders booked profits. Blockchain can be used to reinvent supply-chain management and expedite overseas payments. If you find our opinions helpful, click on the "Like this article" (the Thumb up) at the bottom left of this article and its various caveats. This is not sustainable over the long term. 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. Collins spent some 30 years building a career in executive and consulting financial roles, with a particular emphasis in business taxation. ", 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.". 1. But he expressed concerns (shared by the Fed) that a narrow bank would disrupt incumbent commercial banks at risk to the financial system. Theyre even going to process the financial transactions of American Express. why litecoin will fail. Third, Congress must authorize additional shares of Federal Reserve stock, currently owned by commercial banks, so that narrow banks can play a role in US monetary policy. After all, the hype around Bitcoin will continue to persist for some time longer. In fact, the Reddit community message boards had to split into two totally separate Bitcoin groups, because opposing opinions wanted to continue to talk inside an echo chamber instead of getting along.[3]. There is no control or central authority that oversees the transactions. 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]. Litecoin, which has in the past been called the silver to bitcoin's gold, has been struggling with manydifficulties. For people outside of the complex and exciting world of cryptocurrency, Bitcoin can be hard to understand. The rising price of the asset turned some of its fiercest . The only value that bitcoin has is in somebody else willing to pay a price for it. But Bitcoin and its clones wont be part of it. Blog Inizio Senza categoria why litecoin will fail. But as good as bitcoin has been for investors in 2020, my blunt opinion is that it's a terrible investment. This is pure profit taking by people who are smart enough to know that LTC is neither bitcoin, nor is it ethereum," he stated. Many old-school investors who havent done their research will simply say its in an economic bubble and call it a day. First of all, bitcoin is only as scarce as its programming dictates. In case you cant find any email from our side, please check the spam folder. Bitcoin also benefits from its first-mover advantage in the cryptocurrency space. Heres what to know, How to invest in these very confusing times. Vitalik Buterin is the boy genius creator of Ethereum. The chart below depicts the long-term sentiment of these cryptocurrencies: Long-term sentiment scores of major cryptocurrencies. Governments have the power to tax their people and businesses, the ability to sell public assets, issue bonds and other ways to guarantee their currencies. In a few months, it will have been eleven years since the Bitcoin network was launched by Satoshi Nakamoto. 3 the same risk of being left out. Here's why Litcoine (LTC) will fail as digital silver? 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