why litecoin will fail why litecoin will fail

Oct 29, 2021. Whereas physical metals, such as gold, are limited to what can be mined from the earth, bitcoin's token count is limited by computer programming. Cardano, Ethereum, or any new competitor that ups the tech game stands to run much more than Bitcoin probably will from here on out. If you have an ad-blocker enabled you may be blocked from proceeding. You would just use fiat money. However, this relationship has broken [+] down lately. Copyright HT Digital Streams Limited All rights reserved. But even a piece of artwork has the ability to beautify the space that it occupies. 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? Close Menu. They will issue their own versions instead and then ban bitcoin. In the US dollar, you will see the words legal tender", which means the same thing. It was mostly fear of a mostly unknown virus that people were led to believe could infect surfaces. Its very similar to the stock market in that way. I am not receiving compensation for it (other than from Seeking Alpha). Here are five problems with bitcoin that will cause it to fail eventually. It will need to do three things to acknowledge the changing technology and consumer preferences: Cryptocurrency, and particularly CBDC, are a financial innovation that will inevitably be adopted. Its potential to change technology is as big as the Internet. Watch this video to find out what are the reasons. He also spoke to litecoin's long-term sentiment score, emphasizing that it was the lowest of the five major digital currencies. One of the biggest benefits of Bitcoin it that it is supposed to be private, secure, and untraceable. After Lee disclosed this information, "peoples perspective of Litecoin changed," maintained Garcon. Euromoney explains Blockchain in greater detail here. Statements herein do not represent, and should not be considered to be, investment advice. Right now it is mostly a speculative asset - around 70% of BTC transactions are for speculation with 30% for transactions. 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). Finscreener. Display any widget here. But Bitcoin and its clones wont be part of it. Stocks have real value because of the companies ability to create profits from the goods and services that they sell. For context, global gross domestic product was $81 trillion in 2017. In the digital age, where people want things to happen within a split second, it is simply not realistic to think that as the world slowly begins to understand and use blockchain in their everyday lives, they will choose the slower option, Bitcoin, over currencies that are faster. On March 1, the crypto market capitalization (TOTALCAP) was rejected by the $1.04 trillion resistance area. Commodities have real value because industries purchase them as raw materials to use in the production of goods and services. He has been a guest speaker on numerous national radio and television stations and is a five time published author. July 3 2022. why litecoin will fail3 bedroom house to rent shotton. Litecoin was designed to complement Bitcoin by solving issues like transaction timings and concentrated mining pools. Fear, uncertainty, and doubt are talked about so often in the community that everyone just calls them FUD. If there was ever any reason for the public to believe that Bitcoin may become illegal, if there was a hack, a virus, or any other issue in the system, the value will drop dramatically as people panic and sell as quickly as possible. Feel free to do your own research, but from my experience, both blockchain technologies are also better suited for modern banking. Anyone considering it should be prepared to lose their entire investment.]. Ripple has their own cryptocurrency, called XRP. As a result,litecoin "outperformed" at the start of the year, notedMati Greenspan, senior market analyst for social trading platformeToro. (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. 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. *Average returns of all recommendations since inception. 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. Mr. Collins holds degrees in Economics and Accounting from the Stern School of Business, New York University. The fact that the digital cash system has simply existed for this long is a grand . You might pay 10,000 BTC to buy a pizza today but if the Bitcoin prices triple next week, the whole . He will also address the recently skyrocketing price of bitco. The king of cryptocurrencies also has a utility problem. WalletInvestor Litecoin price prediction for 2022, 2023, 2025, and 2030. 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 . For this paradigm shift to occur and to benefit depositors and business, Congress will need to put aside the interests of its donor base from the financial services industry and act in the national interests. This is pure profit taking by people who are smart enough to know that LTC is neither bitcoin, nor is it ethereum," he stated. The only matter at issue is the timing of the wide adoption. When the dust settles and the emotions fade away, pragmatism will become much more relevant, and these currencies will show their true potential. Before making any investment decision you should consult your own investment, business, legal, tax, and financial advisers. The major company that runs the convention is called Society for Worldwide Interbank Financial Telecommunication (SWIFT). 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. The license promises to comply with United States taxation laws and regulations. Jamie founded Listverse due to an insatiable desire to share fascinating, obscure, and bizarre facts. Whatever other advantages that bitcoin might have over fiat money, such as speed of transactions, will be eroded when fiat money becomes fully digital. We've witnessed the quickest bear market decline of at least 30% in history, as well as the most ferocious comeback of all time, with the benchmark S&P 500 taking less than five months to reach new highs. He could possibly be on a private island enjoying life while coders continue to argue over which coin gets to be the real Bitcoin. Why are prominent people buying bitcoin if it has so many problems? In December 2020, an eight-year-old boy was kidnapped in Karnataka while walking with his grandfather. GameStop Moderna Pfizer Johnson & Johnson AstraZeneca Walgreens Best Buy Novavax SpaceX Tesla. 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. Copyright 2022 HT Digital Streams Ltd All Right Reserved. If no one is willing to work on Litecoin and develop it then why should anyone invest in it?". Whether or not that's true, it's certainly possible considering Bitcoin's history of fast, wild gains and that possibility is precisely what makes Bitcoin an unrealistic currency. "Bitcoin is a nothing-burger . On a year-to-date basis, through Wednesday evening, Oct. 14, bitcoin was up just shy of 60%. The digital asset rallied from roughly $30 at the start of 2019 tonearly $150 in June,rising more than 375%. BUT, let's. But while it's true narrow banking would disrupt commercial bank incumbents there should be no inherent protections for them any more than, say, Hersheys should be protected from a start-up confectionary with a better product. Your basis in cash is its value. Fiat money is heavily defended by the government issuing it. Join This Elite Group - Sign Up Here: https://www.huefinancial.com Follow us on Twitter @HueFin_News Follow us on Instagram Why does bitcoin continue to outperform equities? Outsiders buying in were suckers. Their party-crashing resulted in successfully adopting hundreds of new banking partners to use their technology. why litecoin will fail. As borrowing became more expensive, the Fed's actions choked off the flow of money into the economy and the inflation rate is now cooling. During the last weeks I've read dozens of forum posts from people suggesting to use Litecoins instead of Bitcoins. Every single year, Toronto hosts a banking conference called the Swift International Banking Operations Seminar (SIBOS), where some of the most powerful people in the world meet. al., are to criminal activity what water is to a wet sponge: it permeates all manner of criminal activity. Better yet, hit "like" and then hit the "Follow" button to the right of my photo in the same vicinity. Learn More. In other words, you can make an informed decision. Cardano has a capped market supply and a staking rewards system that encourages decentralization and management of the network by its members alone. Thought about writing a blog rant, but "OMG they're all totally crazy" wasn't long enough, so here we are. But it is not. Since then, it has performed better. Obviously, this was a huge benefit for criminals on the Dark Web. A majority of crypto enthusiasts have always believed that Bitcoin is the only cryptocurrency that is truly worth investing in. But Bitcoin is nothing more than the masthead of the movement. One of the dual mandates of the Fed, for example, is to maintain steady prices, which roughly translates to maintaining the value of the dollar (less the 2% per annum inflation rate the Fed targets to avoid a liquidity trap.). Additionally, they are periodically updated and refined, to keep up with the requirements of the market. 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. 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. Bitcoin has no such central authority that can offer a . The rising price of the asset turned some of its fiercest . Litecoin outperformed the broader market, which climbed more than 200% in less than six months. Now, coders and miners must come to a consensus every time a decision about Bitcoins future must be made. First of all, bitcoin is only as scarce as its programming dictates. One major cause that market observers cited wasprofit taking. As the flagship symbol of the cryptocurrency asset class, Bitcoin slammed bear prediction after bear prediction. In order for these revolutionaries to get what they wantpeople losing faith in banks and switching to Bitcointhe economy of the world as we know it would have to collapse. I now have had my foggy crystal ball for quite a long time. Without any clear vision of where Bitcoin is going, there is very little for an investor to count on or to have faith in. 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. 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. Some hope that people will rise up and choose to go with Bitcoin instead of using traditional banks. Blockchain can be used to reinvent supply-chain management and expedite overseas payments. "Litecoin hasnt been the same since that announcement," he stated. Realist, not conformist analysis of the latest financial, business and political news Sentiment investing has risen by a lot in the last couple of years, stemming from inexperienced retail investors joining in popular, hype-driven rallies. 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]. First, ban trading in, and ownership of, Bitcoin and its clones, just as President Roosevelt. For instance, if you want to buy shares of a publicly traded company, you can scour income statements, its balance sheet, read about industrywide catalysts, and listen to management commentary from recent conference calls and presentations. (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.). Why Bitcoin will fail. You know I love cryptocurrency -- 10% of my net worth is in crypto and digital assets. In 2013, 44 percent of the Bitcoin supply belonged to people who identify as Libertarian. I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. 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. You are now subscribed to our newsletters. Several of them also here on bitcointalk, but none of them provides technical evidence of why Litecoin should be better (or even comparable) to Bitcoins. 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 right now most people are taking a bet on it - so the price continues to go up, mostly due . This produced an extended upper wick (red icon). Bitcoins volatility makes it a terrible currency. 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.". 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. Even after bouncing back,the digital currency is still far below its 2019 high. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services. Why Bitcoin Will Fail. So a debit to your account appears as a debit across the entire Blockchain infrastructure. 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. The Motley Fool has a disclosure policy. There's transaction settlement times and total circulating token supply, but neither of these figures tells us anything about the value or utility of bitcoin. Consequent years are also predicted to be positive, with LTC being valued at $352.793 by 2027. 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 . For the most part, its just kids writing on the Internet about how they want the world to change, without a real plan on how to execute it. One can easily imagine a narrow bank eventually creating an affiliate to make commercial loans and returning a higher return to depositors who accept the higher risk beyond Federal Reserve deposits, or an entrepreneur amassing his own and other deposits and lending them to others to enhance their returns. Bitcoin keeps going up lately, but eventually it will come back down, experts say. Photo by Andr Franois on Unsplash. Secure Your . At the beginning of the Bitcoin project, Satoshi was able to guide the coders who helped create the platform any time they had a question. Investing in bitcoin is not investing in blockchain tech. Others make false promises and never act out on their plans of revolution. The speed of transferring Bitcoin across the blockchain does not keep up with modern banking standards. Opinions expressed by Forbes Contributors are their own. You are just one step away from creating your watchlist! However, when one looks at the big picture, it becomes clear that Bitcoin will struggle to survive. They would strategically partially ll the blocks by including You bought it as a speculative investment hoping that it would go up in value. The advantages that bitcoin . Once the trend fades away, we are left asking ourselves whether Bitcoin will actually manage to beat its competitors when the dust settles. Regardless of bitcoin's recent rise, "Shark Tank" investor Kevin O'Leary would not put his money into bitcoin, he said in a YouTube video published Tuesday. Now, does this mean that you cant make money off the Bitcoin rallies and institutional investing? The most enthusiastic supporters of Bitcoin are revolutionaries. Dave Hendricks, cofounder and CEO ofdigital asset management platformVertalo, offered a similar point of view. Bitcoin isn't really scarce. You may opt-out by. 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"? However, Litecoin may still provide . With the rise of peer-to-peer payment platforms, bitcoin looks to become the superior digital currency. Active revolutionaries who are pushing for a collapse are in short supply. Many have brushed it off for years, saying that it was a fad that would disappear as quickly as the value of Beanie Babies. 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.). TL;DR Breakdown. Thats it. Carnegie Mellon University - David A. Tepper School of Business. Volatility. Mind you, we've already witnessed multiple 80%-plus declines in bitcoin throughout its history. Therefore, to simply answer the question of the tile, no, Bitcoin is not going to fall this year. Summary. and why you should run like the dickens away from this much-hyped internet artifice. Billionaire Jamie Dimon, the CEO of JP Morgan chase, has called Bitcoin a fraud and says that it is destined to fail. In fact, it is likely to keep getting worse.[6]. There's minimal utility here. Let's cut to the chase, With China & other various countries banning crypto, Unless it's regulated by the government, it will fail. In case you cant find any email from our side, please check the spam folder. The spread between the bid and ask on Bitcoin, for which the value is, at best, opaque, can vary considerably. Crypto critics have been expressing similar sentiments regarding Bitcoin, claiming that it is doomed to fail sooner or later. Dec 28 "The Great Bitcoin Scam" - Forbes . 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). 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. But, also, credit card reader technology is ubiquitous. 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. Litecoin hasnt been the same since that announcement," he stated. The possibility of manipulation by such modern day pools should trouble holders. Bitcoin is commonly viewed as the "currency" of choice for criminal organizations. The most obvious disaster scenario is a speculative bubble followed by a crash. Too many people are burned, reversing bitcoins momentum and value declines year after year. why litecoin will fail. In a few months, it will have been eleven years since the Bitcoin network was launched by Satoshi Nakamoto. Who is minding the store? (When critics complained about Franklin Roosevelt naming Kennedy first chair of the SEC, FDR justified his appointment using the phrase set a thief to catch a thief.). This could prove somewhat accurate with the pandemic highlighting the potential for physical cash to be a carrier of harmful germs. Barely a decade after its launch, Bitcoin rose from its humble beginnings to reach a market cap of 1 trillion US dollars. The application costs $5,000, and there are 500 pages of legal paperwork that would require a team of taxation lawyers to decipher. You wouldnt pay in bitcoin because your fear is that two weeks later, bitcoins value goes up by 20%. In the year Ive spent in locked-down Manhattan, I could count the number of times I have used paper currency on the fingers of both hands and still have a finger or two to scratch my head. From seemingly out of nowhere, what was once an obscure technocrats' dream now has thousands of evangelizers shouting its glory. The longer Bitcoin exists, the more difficult it becomes to "mine," or create new coins. CEO of making fun of business and investing gurus online. A pretty bold claim, right? Right now, people are building bitcoin according to what is currently true, and what has been true in the past. University of Pittsburgh - Katz Graduate School of Business. For the past few years, Bitcoin and the other cryptocurrencies have been on fire. Sounds like those bear predictions I was talking about earlier. Cryptocurrency can be the future . But if the bid and ask are filled by groups working in unison to raise Bitcoin value, market economics are replaced by subterfuge. Many people have been rewarded for holding onto their Bitcoins for dear life, but good news can only last for so long.[7]. Litecoin, which has in the past been called the silver to bitcoin's gold, has been struggling with manydifficulties. 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. It is the earliest one, so it is the most well-known, but I believe there are serious problems with bitcoin that will cause it to fail. It doesnt matter how many vendors profess to accept it. Manmohan Aseri. For example, Mastercard (MA 1.67%) was awarded a patent in July 2018 "for linkage of blockchain-based assets to fiat currency amounts." There are over 20,000 crypto projects now and most are pointless. Everyone's Down on Block. Bitcoin has been declared dead 396 times yet it continues to grow in market cap, hashpower, and network size. The benefits to governments of CBDC over Bitcoin and its clones are innumerable. Bitcoin doesnt even have that. Before establishing The Stuyvesant Square Consultancy, J.G. Please disable your ad-blocker and refresh. So far, so good, right? If the debit is recorded on the ledger, the transaction is written in stone. Looks like you have exceeded the limit to bookmark the image. You can read his blog here. By no means are cryptocurrencies the only asset to be hacked by thieves, but there are serious fraud and theft concerns that accompany bitcoin. why litecoin will fail bitcoin futures ethereum futures cardano futures litecoin futures binance futures. [Ed note: Investing in cryptocoins or tokens is highly speculative and the market is largely unregulated. Its much easier to imagine a worthless, privately issued, cryptocurrency.). Why Bitcoin will Fail to Scale? On the other hand, beyond the zero bound, when the Fed is managing more routine monetary policy, it could more readily inflate the economy by increasing the rate of exchange for currency for CBDC and reduce inflation by decreasing it. This is an opinion editorial by Mickey Koss, a West Point graduate with a degree in economics. Cryptocurrency is here to stay, but Bitcoin and its clones will be obsolete, probably within this decade. Let's STOP the madness! The Motley Fool owns shares of and recommends Mastercard, and has no position in any cryptocurrencies mentioned. 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. Nonetheless, the appeal of not having a Big Brother government sniff through your transactions will still outweigh this shortcoming. As a result, they o er near-zero transaction fees. Once investigation agencies all over the world began searching for him, Satoshi Nakamoto disappeared. Litecoin prices, which have enjoyed a sustained rally over the last several months, have climbed more than 1,700% year-to-date (YTD). 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. "Both of those currencies have large and devoted followings and developers, whereas LTC hasnot much," claimedHendricks. Hype and media attention are temporary, though. All of the original ideas for possible use cases for the blockchain are actually coming true through Ripple, not Bitcoin. A more apocalyptic scenario is bitcoin does the same thing to power that it did to gpu prices. Dec 30 "BitcoinThe Andromeda Strain of Computer Science Research" - SMBlog | $14,669.04. Litecoin intro. 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. Without the miners, the Bitcoin network collapses. Why Bitcoin Will Fail in 2022. Bitcoin also benefits from its first-mover advantage in the cryptocurrency space. If you think preparing your federal income taxes stinks now, try preparing them after investing in and/or using bitcoin in any transaction. -- Me on twitter. His experience spans work for Fortune 100 companies, one of the former Big Eight international accounting firms, and client service for large middle-market public accounting firms.