why litecoin will fail why litecoin will fail

Why Bitcoin Will Fail in 2022. Intuitively, one would expect that increasing the block capacity would solve this scaling problem. So, why arent they as popular? 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. Ask a skeptic, and they'll tell you it's a bubble that's about to pop. After Lee disclosed this information, "peoples perspective of Litecoin changed," maintained Garcon. Over the years, bitcoin has enjoyed massive success both as an asset and as a blockchain asset. Here are three reasons why. instantaneously among all users. Additionally, it's been hypothesized by numerous blogs and publications that North Korea has turned to bitcoin mining and theft to funnel money into its isolated economy. 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. Bitcoin price analysis for today shows Bitcoin price has settled at $22 . There are multiple benefits to governments from a Central Bank Digital Currency, CBDC, in managing monetary policy, enforcing tax compliance, and inhibiting criminal activity. "Bitcoin is a nothing-burger . Thats to say nothing of all the multiple schemes fraudsters use to clone your card. To Avoid Falling For Scams, Novice Crypto Traders Should Treat Most Tokens Like Stocks. Its potential to change technology is as big as the Internet. In December 2020, an eight-year-old boy was kidnapped in Karnataka while walking with his grandfather. Since then, it has performed better. Yet each wave of adoption brings people who argue why Bitcoin will fail. TL;DR Breakdown. The spread between the bid and ask on Bitcoin, for which the value is, at best, opaque, can vary considerably. Large Crypto Losses May Not Become Instant Tax Write-0ffs, But Heres What You Can Do, The Death Spiral: How Terras Algorithmic Stablecoin Came Crashing Down, How The DeFi Space Has Become A Massive Breeding Ground For Crypto Ponzi Schemes, Cryptos Great Reset: How Digital Asset Investors Will Recover From The Markets $1 Trillion Meltdown. why litecoin will fail. Cardano, Ethereum, or any new competitor that ups the tech game stands to run much more than Bitcoin probably will from here on out. Another reason bitcoin has done so well is the expectation of a digital revolution. I am not receiving compensation for it (other than from Seeking Alpha). 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 . Oops! Answer (1 of 19): Just to throw out a contrarian view - sure bitcoin can fail. 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. Once the fall starts, it will come hard and fast. Right now, it is the commercial banks that prohibit narrow banking. Barely a decade after its launch, Bitcoin rose from its humble beginnings to reach a market cap of 1 trillion US dollars. Blockchain can be used to reinvent supply-chain management and expedite overseas payments. For context, global gross domestic product was $81 trillion in 2017. There's another reason why so many cryptocurrencies fail - a lack of security. So far, so good, right? While there are many compelling theories about his true identity, no one knows exactly who he is. Youre reading a free article with opinions that may differ from The Motley Fools Premium Investing Services. I have no business relationship with any company whose stock is mentioned in this article. Bitcoin is what is known as a first-generation blockchain, meaning that it was the first of its kind. But when folks are buying into bitcoin, they're gaining ownership in digital tokens with zero ownership of the underlying blockchain. (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. Just think of it this way: if you have bitcoin, will you use it to purchase anything? Blog Inizio Senza categoria why litecoin will fail. Another beef with bitcoin is that there's no tangible way to value it as an asset. The speed of transferring Bitcoin across the blockchain does not keep up with modern banking standards. Cost basis and return based on previous market day close. WHY BITCOIN WILL FAIL: foreword by Craig S Wrong With bitcoin, there is no tangible data for investors to wrap their hands around. Campaign collateral he developed for political campaigns has been used in university courses as an excellent example of persuasive campaign advertising. As we saw with the GameStop (GME) short squeeze, a relatively small group of traders can manipulate pricing of any asset. If one revolutionary group like Anonymous can fall apart, whats to stop Bitcoin from suffering the same fate? 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. Realist, not conformist analysis of the latest financial, business and political news The benefits to governments of CBDC over Bitcoin and its clones are innumerable. This is not sustainable over the long term. Even after bouncing back,the digital currency is still far below its 2019 high. Pretty nifty I would say. and why you should run like the dickens away from this much-hyped internet artifice. 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. 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. 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). As a currency, Bitcoin has little value if not converted into dollars, and the value of a single Bitcoin as represented by goods is essentially . University of Pittsburgh - Katz Graduate School of Business. Please disable your ad-blocker and refresh. 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. Thats it. 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. NOTE: Our commentaries most often tend to be event-driven. In 2013, 44 percent of the Bitcoin supply belonged to people who identify as Libertarian. There's nothing unique about bitcoin's underlying blockchain that other businesses couldn't one-up. This article includes forward looking statements as to future events that may or may not develop as the writer opines. Watch this video to find out what are the reasons. 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. "Now that the alt markets are sluggish, they're taking some profits off the table.". Ripple has their own cryptocurrency, called XRP. Litecoin Has Climbed More Than 1,700% Year-To-Date - Forbes. The longer Bitcoin exists, the longer it takes for these computer systems to process the information. 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. why litecoin will fail. The king of cryptocurrencies also has a utility problem. 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]. The Internal Revenue Service expects you to report capital gains and losses tied to investment activity, as well as gains and losses associated with purchasing goods and services. Obviously, this was a huge benefit for criminals on the Dark Web. Name *. There are cryptocurrencies, known as stablecoins, which are backed up by real assets (such as the US dollar) that use the very latest in blockchain technology. WHY BITCOIN WILL FAIL: foreword by Craig S Wrong [Sakamoto, Natoshi, Wrong, Dr Criag S] on Amazon.com. And then, try to push that out to once every two weeks or once a month. Bitcoin falls dramatically short of the scale provided by banks for payments. Other cryptocurrencies actually have leaders to guide them. For most businesses, its simply not worth the money, time, and effort to accept Bitcoin when so few people will actually use it in their stores.[4]. why litecoin will fail. Bitcoin has been declared dead 396 times yet it continues to grow in market cap, hashpower, and network size. Cardano has a capped market supply and a staking rewards system that encourages decentralization and management of the network by its members alone. 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. The only downside was that a lot of these coins were fraudulent. Bitcoins volatility makes it a terrible currency. You know I love cryptocurrency -- 10% of my net worth is in crypto and digital assets. The one percent arent threatened by Ripple the way they are by Bitcoin. You wouldnt pay in bitcoin because your fear is that two weeks later, bitcoins value goes up by 20%. Anyone considering it should be prepared to lose their entire investment.]. The inflationary spiral is notorious and it could bring Bitcoin to its end. Here's why Litcoine (LTC) will fail as digital silver? Heres what to know, How to invest in these very confusing times. Little did investors foresee the Catch-22 that would arise. 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. Let's cut to the chase, With China & other various countries banning crypto, Unless it's regulated by the government, it will fail. 1. Bitcoin is a utopian dream. After that, a decline began, which accelerated on March 3. 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. Why are prominent people buying bitcoin if it has so many problems? They would strategically partially ll the blocks by including There is a lot of excitement surrounding Bitcoin and cryptocurrencies, but we would like to sound a cautionary bell against investing in them. (Think Tulipmania or, more recently, the Dot Com bubble. For one, there's the idea of scarcity. Im saying that bitcoin will fail. Is Litecoin still a good investment? Bitcoin et. Even with the pandemic, there are now more than 11,000 cryptocurrencies in existence, up from about 6,000 in 2020, according to the website CoinMarketCap. Others discuss new management strategies we believe will fail. But by depreciating the exchange value of paper currency relative to CBDC, Haldane reasoned, central bankers could effectively impose negative interest rates. What does this mean? why litecoin will fail 2017. If this has the remotest possibility of becoming true, it means that bitcoin is in competition with national currencies. Join Us!!! Thought about writing a blog rant, but "OMG they're all totally crazy" wasn't long enough, so here we are. GameStop Moderna Pfizer Johnson & Johnson AstraZeneca Walgreens Best Buy Novavax SpaceX Tesla. Over the long term, blockchain technology is where the real value lies. Fiat money has the value of the guarantee of the government that issues it. Join This Elite Group - Sign Up Here: https://www.huefinancial.com Follow us on Twitter @HueFin_News Follow us on Instagram Wiktor Jaszczuk's talk will focus on issues and desired outcomes arising from cryptocurrencies. Dec 30 "BitcoinThe Andromeda Strain of Computer Science Research" - SMBlog | $14,669.04. In October 2017, Bill Gates announced that he chose Ripple to run his project that will help alleviate poverty in developing nations, despite having promoted Bitcoin in the past.[5]. 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. Litecoin was designed to complement Bitcoin by solving issues like transaction timings and concentrated mining pools. 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. There is none. 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. All it takes is time and coding knowledge for blockchain -- the digital and decentralized ledger that records transactions -- to be developed and a digital token to be tethered to the network. (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. Down More Than 90% From the Peak, Is Lemonade a Buy After Earnings? Read more about currencies on 10 Banknotes With Hidden Images And Symbols and 10 Strange Forms Of Ancient Currency. Bitcoin has many issues and will at some point fail. Why Bitcoin Will Fail (cryptofireside.com) If the world learned anything from the 2008 financial crisis, it was that nothing is too big to fail. It was a blank white page that was titled World Wide Web and a list of text links. "Both of those currencies have large and devoted followings and developers, whereas LTC hasnot much," claimedHendricks. When Bitcoin started its journey towards financial triumph, the price of a single BTC was less than a single penny. The Motley Fool has a disclosure policy. 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. Deflationary spiral is an economic argument that proposes that runaway deflation can eventually lead to the collapse of the currency given certain conditions and constraints. Since the going price is the price of the last trade, if there are no buyers there to buy, as could theoretically occur, those who have used Bitcoin as a store of value would see their wealth evaporate. They predict that LTC will get as high as $153.301 by 2023. 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. 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. al. 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. Some people say that fiat money (which are the normal currencies that we all use today) also does not have real value since we moved out of the gold standard. If Bitcoin is in the news, its price can fluctuate hundreds of dollars in a matter of hours. Everyone's Down on Block. These coins are much more suitable to be used as currencies because they only fluctuate as much, or as little, as their underlying assets. So again, no, nobody is buying bitcoin because of its blockchain tech because there are better options available. Three years ago, when blockchain companies and cryptocurrency stocks were the hottest thing since sliced bread, it was expected that blockchain technology would be quickly adopted. It is actually going to rise like many times before. Why does bitcoin continue to outperform equities? During the last weeks I've read dozens of forum posts from people suggesting to use Litecoins instead of Bitcoins. "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 . It is a common criticism made against the viability of Bitcoin . This would be fatal to their monetary systems! Better yet, hit "like" and then hit the "Follow" button to the right of my photo in the same vicinity. Click here to become one now! Bitcoin doesnt even have that. Save my name, email, and website in this browser for the next time I comment. Last Updated on June 19, 2022 by . Im not saying that cryptocurrencies will fail. 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.". At the moment, the one and only digital currency that is actually working with the US Federal Reserve is a company called Ripple. For example, phone #: 123-333-4567. Why Bitcoin Will Fail . "Litecoin hasnt been the same since that announcement," he stated. However, Litecoin may still provide . (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.). At this point in time, the only way to truly have an anonymous and untraceable financial transaction is with cold, hard cash. That the value storage argument is here for these coins too. In New York, all businesses who want to accept Bitcoin are required to register for a BitLicense if they want to do business. 5 Time And Mining Problems. Here are 10 reasons you should avoid bitcoin like the plague. Big players have got involved in the craze and are actively manipulating the markets through high investment and high sell-off. Bitcoin may enjoy first-mover advantage at the moment, but the barrier to entry in the cryptocurrency space is especially low. They are in charge of what the world currently uses for banking transfers. Over the years we've heard many reasons why Bitcoin will fail. 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. Theyre even going to process the financial transactions of American Express. Cryptocurrency can be the future . Bitcoin is commonly viewed as the "currency" of choice for criminal organizations. Clearly, the reasons why Bitcoin will fail are outnumbered by the reasons Bitcoin will succeed. In most countries, the cost of electricity to run these computers is actually more than what the digital currency is worth, which makes it pointless to even try. There are a lot of people who believe that in order for Bitcoin to survive, there needs to be a mass exodus to another platform that would be faster and more reliable. If no one is willing to work on Litecoin and develop it then why should anyone invest in it?". As we have seen in recent days, China has banned bitcoin trading and mining. Secure Your . 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. Yet, experts still claim the cryptocurrency is not sustainable fiat in the long term. I now have had my foggy crystal ball for quite a long time. Since . Meanwhile, bitcoin has approximately $114 billion to $125 billion in tokens freely circulating and not held tight by investors. For the past few years, Bitcoin and the other cryptocurrencies have been on fire. Bitcoin isn't really scarce. Share Prices Down. 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. Experts' forecasts suggest that by the end of this year, in December of 2023, BTC will have a value of nearly $13,000. Some bitcoin supporters have the vision of a future where currencies are fully democratized and not controlled by governments. First of all, bitcoin is only as scarce as its programming dictates. This is to say that bitcoin buyers believe the utility of paper money has come and gone. Display any widget here. 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. Right now, people are building bitcoin according to what is currently true, and what has been true in the past. 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. It was the first currency to hit $100, then $1000, and so on. Posted: 4 Feb 2019 Last revised: 2 Oct 2022. Governments already have predicates to ban the use and exchange of Bitcoin: Tax evasion - enabling criminal activity. But Bitcoin is nothing more than the masthead of the movement. While pioneering is always fondly remembered, it is not efficient to keep rolling with the prototype forever. It is only normal that any adoption by institutions to start with the headline of the news. 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. scoop wilson county . Multiple sources are sure that the value is going to be between $10,000 . 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). al. Note: All information on this page is subject to change. why litecoin will fail >>CLICK HERE<< to change your financial future! 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. At the moment, the world of blockchain is young and exciting, like the Wild West of the digital world. Without the miners, the Bitcoin network collapses. Feel free to do your own research, but from my experience, both blockchain technologies are also better suited for modern banking. 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. Why Bitcoin will fail: although crypto will be a huge success! 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. Once investigation agencies all over the world began searching for him, Satoshi Nakamoto disappeared. Coinbase is a cryptocurrency exchangeit allows you to buy, store, and trade cryptocurrencies, which are invented kinds of alternative moneys. But it is not. A Tool for Central Bank Monetary Management. As the flagship symbol of the cryptocurrency asset class, Bitcoin slammed bear prediction after bear prediction. 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. 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 . In case you cant find any email from our side, please check the spam folder. The most valuable thing about Bitcoin is that it introduced blockchain technology to the world. Supporters of bitcoin say that it will replace fiat money. In fact, it is quite obvious that the future of currencies is digital and crypto is simply a particular way of operating a digital currency. Litecoin intro. The Motley Fool owns shares of and recommends Mastercard, and has no position in any cryptocurrencies mentioned. Several analysts believe that the $20 transaction fee, which is higher than that of traditional payment systems . Many old-school investors who havent done their research will simply say its in an economic bubble and call it a day. 2 Reasons to Avoid a Roth 401(k) for Your Retirement Savings, Want $1 Million in Retirement? You may opt-out by. Many have brushed it off for years, saying that it was a fad that would disappear as quickly as the value of Beanie Babies. Payouts Up. Whatever other advantages that bitcoin might have over fiat money, such as speed of transactions, will be eroded when fiat money becomes fully digital. This piece is to explain why you shouldnt invest in Bitcoin, et. There are over 20,000 crypto projects now and most are pointless. In a few months, it will have been eleven years since the Bitcoin network was launched by Satoshi Nakamoto. Litecoin prices, which have enjoyed a sustained rally over the last several months, have climbed more than 1,700% year-to-date (YTD). 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"? Here's What Warren Buffett Has to Say. 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. The Bid:Ask will collapse. Without stability, a currency does not work. Vitalik Buterin is the boy genius creator of Ethereum. 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. (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.). Why Is Annaly Capital Management's Dividend So High? Bitcoin goes UP. The Bitcoin price is down today as crypto markets react to fresh FTX fallout, and BTC bulls are unable to defend . Virtually every business even vendors at farmers' markets - has everything from the Square credit card reader plugged into a telephone to a dedicated Verifone credit card reader to process 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. Sounds like those bear predictions I was talking about earlier. 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. al., all fail as a reliable store of value or as a medium of exchange. 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.". why litecoin will fail >>CLICK HERE<< to change your financial future! Close Menu. I am a financial writer and editor who focuses on investments. Mr. Collins conceived and branded the specialty industry entertainment practice of one of the nations leading accounting firms and oversaw the business tax marketing program for business enterprises of another large regional firm. So no, countries will not adopt bitcoin. Once the fall starts, it will come hard and fast. And yet, in 2021, a new bull rally brought it to the historic height of $65.000 per coin. CEO of making fun of business and investing gurus online. Bitcoin prices regularly dip and soar, making it impossible to predict whether it will be worth tomorrow what it is worth today. Just like any other speculative asset, no one really knows what is going to happen in the future. 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. Frank added that "LTC is also experiencing the largest drop in long-term sentiment among any of the largest coins.". 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 . 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. Photo by Andr Franois on Unsplash. Q&A / By . He spent four years in the infantry before transitioning to the . Since the Bitcoin founder Satoshi Nakamoto is no longer publishing his opinions, all coders have left is the documentation he left behind. subscribe to DDIntel at https://ddintel.datadriveninvestor.com. Why Bitcoin will fail. Its very similar to the stock market in that way. Volatility. In other words, you can make an informed decision. At the time this article was written, the official time for a Bitcoin transfer is one hour, but anyone who uses Bitcoin on a regular basis knows that is far from the truth.