why litecoin will fail

There is no supporting entity that is charged with effectively maintaining the value of the cryptocurrencies. Bitcoin is among the most polarizing investments in history. This is an opinion editorial by Mickey Koss, a West Point graduate with a degree in economics. However, even though Bitcoin was the first to introduce blockchain to the world, its not necessary for blockchain to exist. 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. Sean Williams owns shares of Mastercard, and has no position in any cryptocurrencies mentioned. Bitcoin may enjoy first-mover advantage at the moment, but the barrier to entry in the cryptocurrency space is especially low. Consequently, central bankers will inevitably issue CBDC. It's only a matter of time. Your session has expired, please login again. Their party-crashing resulted in successfully adopting hundreds of new banking partners to use their technology. Developers have come up with a solution called a hard fork, which is why Bitcoin Cash was created. The one percent arent threatened by Ripple the way they are by Bitcoin. 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. No matter how excited investors are about bitcoin and its underlying blockchain, history suggests it won't be enough to match lofty expectations. They will issue their own versions instead and then ban bitcoin. Still, for the most part, people don't believe in Litecoin, which is why LTC lost its positions, according to CoinMarketCap. CEO of making fun of business and investing gurus online. You are just one step away from creating your watchlist! Another reason bitcoin has done so well is the expectation of a digital revolution. 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. First, ban trading in, and ownership of, Bitcoin and its clones, just as President Roosevelt. 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. "Bitcoin is a nothing-burger . This could prove somewhat accurate with the pandemic highlighting the potential for physical cash to be a carrier of harmful germs. Coinbase is a cryptocurrency exchangeit allows you to buy, store, and trade cryptocurrencies, which are invented kinds of alternative moneys. Like that time Elon Musk made a tweet about Signal and a completely unrelated company with a similar name jumped 1100%. If the debit is recorded on the ledger, the transaction is written in stone. 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. Hype and media attention are temporary, though. 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. You are now subscribed to our newsletters. Sounds like those bear predictions I was talking about earlier. Some hope that people will rise up and choose to go with Bitcoin instead of using traditional banks. The second argument against Bitcoin is that the digital currency is too volatile to work as a reliable currency. GameStop Moderna Pfizer Johnson & Johnson AstraZeneca Walgreens Best Buy Novavax SpaceX Tesla. Why bitcoin will fail. Litecoin, which has in the past been called the silver to bitcoin's gold, has been struggling with manydifficulties. But by depreciating the exchange value of paper currency relative to CBDC, Haldane reasoned, central bankers could effectively impose negative interest rates. Several analysts believe that the $20 transaction fee, which is higher than that of traditional payment systems . Many have brushed it off for years, saying that it was a fad that would disappear as quickly as the value of Beanie Babies. Once the fall starts, it will come hard and fast. After all, the hype around Bitcoin will continue to persist for some time longer. The Bitcoin price is down today as crypto markets react to fresh FTX fallout, and BTC bulls are unable to defend . Not a member yet? I am a financial writer and editor who focuses on investments. Many small businesses in Californias Silicon Valley accept Bitcoin as a form of payment, but larger corporations still only accept cash and cards. Rising Cost of Mining. Since . For the past few years, Bitcoin and the other cryptocurrencies have been on fire. In short, blockchain is years away from being a mainstream technology. Making the world smarter, happier, and richer. "Now that the alt markets are sluggish, they're taking some profits off the table.". I also offer advice that actually works in real life. You know I love cryptocurrency -- 10% of my net worth is in crypto and digital assets. 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. Share Prices Down. Statements herein do not represent, and should not be considered to be, investment advice. Mind you, we've already witnessed multiple 80%-plus declines in bitcoin throughout its history. Im saying that bitcoin will fail. Bitcoin is also a commodity, subject to capital gain and loss, but governments seeking to capture either are usually hard-pressed to determine those gains and losses for tax purposes. The most obvious disaster scenario is a speculative bubble followed by a crash. Manmohan Aseri. why litecoin will fail 2017. You wouldnt pay in bitcoin because your fear is that two weeks later, bitcoins value goes up by 20%. Most people never saw the very first website that was ever created. 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. 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 . In our view, Bitcoin is a bit like the Wild West of investing, back to the days before there was an SEC. He also spoke to litecoin's long-term sentiment score, emphasizing that it was the lowest of the five major digital currencies. Time to Buy These 3 Dividend Machines? 2 India's Bitcoin Kidnappings. Little did investors foresee the Catch-22 that would arise. Bitcoin isn't really scarce. It's time to stop the confusion. Bitcoin Falls Under $35,000 As China Bans Crypto On May 19 , 2021. Bitcoin keeps going up lately, but eventually it will come back down, experts say. 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. 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.". I wrote this article myself, and it expresses my own opinions. I have no business relationship with any company whose stock is mentioned in this article. 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. Dec 30 "BitcoinThe Andromeda Strain of Computer Science Research" - SMBlog | $14,669.04. Before making any investment decision you should consult your own investment, business, legal, tax, and financial advisers. It has demonstrated clear stability in the past 12 years, with price and network strength pushing forward year after year. Transactions can take up to six hours at busy times of the day, because it averages 15 transactions per second. Almost all of the banks in the world use SWIFTs now-outdated technology, and they handle quadrillions of dollars. 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. Well, in this article, this awesome "UBS economist" stated the obvious: -- Me on twitter. Bitcoin has no purpose and provides no benefit. Obviously, this was a huge benefit for criminals on the Dark Web. Payouts Up. So a debit to your account appears as a debit across the entire Blockchain infrastructure. filed 20 April 2021 in Economics. Why Bitcoin will fail. I am not confident that this future will come based on the reasons above. Bitcoin price analysis for today shows Bitcoin price has settled at $22 . Let's cut to the chase, With China & other various countries banning crypto, Unless it's regulated by the government, it will fail. But the reasons why Bitcoin cannot succeed in the long run go so much deeper than that. Cryptocurrency is here to stay, but Bitcoin and its clones will be obsolete, probably within this decade. Posted on 07.3.22 . They are mostly written from a public policy, economic, or political/geopolitical perspective. 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. Plus, we'll give our update price forecast for Litecoin (LTC). "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. Blockchain can be used to reinvent supply-chain management and expedite overseas payments. 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. Join the most important conversation in crypto and Web3 taking place in Austin, Texas, April 26-28. This is to say that bitcoin buyers believe the utility of paper money has come and gone. 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. (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.). 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. Bitcoin also benefits from its first-mover advantage in the cryptocurrency space. Failure Reason #3: Ethereum-Related Cyber Crime. Last, but not least, all next-big-thing investment bubbles eventually burst. 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. As of 2017, the amount of Bitcoin that Satoshi Nakamoto owns is now worth billions of dollars, and he has made it clear that he is done with the project. Photo by Andr Franois on Unsplash. To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. It's been a challenging year for Wall Street. It is not a currency, it is not a store of value, it is not an inflation . Heres what to know, How to invest in these very confusing times. It is actually going to rise like many times before. Unfortunately, the community cannot seem to agree on even the smallest decisions. It is in competition with national currencies. July 3 2022. why litecoin will fail3 bedroom house to rent shotton. Why Is Annaly Capital Management's Dividend So High? Contrarily, I think the appeal of decentralized money, not controlled by big banks or the government, is the fuel of the crypto rally. Why Bitcoin Will Fail . Stocks have real value because of the companies ability to create profits from the goods and services that they sell. 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. Litecoin Has Climbed More Than 1,700% Year-To-Date - 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). Why Bitcoin Will Fail. Whether its the latest phishing scam, cyber blackmail, or a ransomware attack, the legions of criminal schemers all prefer the anonymity of Bitcoin to a less anonymous alternative. To date, only 18.51 million bitcoin tokens are in circulation, with an estimated 40% of these held by small group of investors. Just think of it this way: if you have bitcoin, will you use it to purchase anything? 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. There are over 20,000 crypto projects now and most are pointless. 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. But if the bid and ask are filled by groups working in unison to raise Bitcoin value, market economics are replaced by subterfuge. "We have seen a very strong correlation between tweet volumes and market cap of Litecoin," saidJoshua Frank, cofounder of TheTIE.io. He spent four years in the infantry before transitioning to the . Down More Than 90% From the Peak, Is Lemonade a Buy After Earnings? To Avoid Falling For Scams, Novice Crypto Traders Should Treat Most Tokens Like Stocks. At this point in time, the only way to truly have an anonymous and untraceable financial transaction is with cold, hard cash. Newcomers are dumping their money into Bitcoin, hoping that the price will only continue to grow. If the debit is recorded on the ledger, the transaction is written in stone. Ask a skeptic, and they'll tell you it's a bubble that's about to pop. It is only normal that any adoption by institutions to start with the headline of the news. 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. 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. 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.). Barely a decade after its launch, Bitcoin rose from its humble beginnings to reach a market cap of 1 trillion US dollars. That the value storage argument is here for these coins too. 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 . Buy These 2 Stocks in 2023 and Hold for the Next Decade, Warren Buffett's Latest $2.9 Billion Buy Brings His Total Investment in This Stock to $66 Billion in 4 Years, 2 Stocks That Are About to Make Their Shareholders Richer, Join Over Half a Million Premium Members And Get More In-Depth Stock Guidance and Research, bitcoin is only as scarce as its programming dictates, all next-big-thing investment bubbles eventually burst, Copyright, Trademark and Patent Information. Bitcoin has many issues and will at some point fail. At the moment, the one and only digital currency that is actually working with the US Federal Reserve is a company called Ripple. Even considering the fact that fractional token ownership exists, roughly 10 million to 11 million tokens in circulation aren't going to go very far. Shannon Quinn (shannquinn.com) is a writer and entrepreneur from the Philadelphia area. 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 was designed to complement Bitcoin by solving issues like transaction timings and concentrated mining pools. Of course not. Another, newer, better, cryptocurrency could displace it just as MySpace was replaced by Facebook (FB) and Google (GOOG) (GOOGL) displaced Yahoo. This is incorrect. Collins spent some 30 years building a career in executive and consulting financial roles, with a particular emphasis in business taxation. Why does bitcoin continue to outperform equities? Disclosure: I own some bitcoin, bitcoin cash, litecoin, ether and EOS. 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. Now, does this mean that you cant make money off the Bitcoin rallies and institutional investing? Experts' forecasts suggest that by the end of this year, in December of 2023, BTC will have a value of nearly $13,000. 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. This is pure profit taking by people who are smart enough to know that LTC is neither bitcoin, nor is it ethereum," he stated. Over the long term, blockchain technology is where the real value lies. 3 min read . Looking forward, it seems only a matter of time perhaps before the end of this decade that cash and credit cards are replaced by a more convenient and equally ubiquitous payment systems. 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 . There's nothing unique about bitcoin's underlying blockchain that other businesses couldn't one-up. Active revolutionaries who are pushing for a collapse are in short supply. In December 2020, an eight-year-old boy was kidnapped in Karnataka while walking with his grandfather. With the rise of peer-to-peer payment platforms, bitcoin looks to become the superior digital currency. People becoming millionaires from this cryptocurrency spring up all around. In fact, it is likely to keep getting worse.[6]. 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. Bitcoin has a promising future as a store of value and a part of the world's monetary system. The Motley Fool owns shares of and recommends Mastercard, and has no position in any cryptocurrencies mentioned. The Motley Fool has a disclosure policy. Moh Hon Meng | Published on 04 Jun 2021 Facebook Twitter LinkedIn Email Whatsapp Whatsapp. 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. 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. But credit and debit cards are last century technology and they charge fees, both to the vendor and sometimes the cardholder and for the convenience. For example, Mastercard (MA 1.67%) was awarded a patent in July 2018 "for linkage of blockchain-based assets to fiat currency amounts." 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. In fact, on the Indian rupee note, you will see a promise to pay the bearer" issued by the RBI governor. I am not receiving compensation for it (other than from Seeking Alpha). 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. Right now it is mostly a speculative asset - around 70% of BTC transactions are for speculation with 30% for transactions. Outsiders buying in were suckers. Thus, bitcoin offers the perception of scarcity without actually being scarce. 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. 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. 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. Sentiment investing has risen by a lot in the last couple of years, stemming from inexperienced retail investors joining in popular, hype-driven rallies. Just be aware that, especially in a new industry, fundamentals outlive bubbles. The license promises to comply with United States taxation laws and regulations. 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. While I try to avoid bandwagons, the false confidence Bitcoin has gained aroused me to write an article on . It was the first currency to hit $100, then $1000, and so on. Both of these coins, or cryptocurrencies, are already available on the market. The negative interest rates, it is assumed, would stimulate purchasing under a use it or lose it assumption. The benefits to governments of CBDC over Bitcoin and its clones are innumerable. This implies there may not be any need for a made-up digital token to be used at all on blockchain networks. Therefore, to simply answer the question of the tile, no, Bitcoin is not going to fall this year. 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. Log in to our website to save your bookmarks. 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]. 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). If one revolutionary group like Anonymous can fall apart, whats to stop Bitcoin from suffering the same fate? 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. 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? Litecoin intro. TL;DR Breakdown. When explaining the cryptocurrency's notable decline, analysts have pointed to several factors. Why Bitcoin Will Fail to Scale? But with state backed currency of ones own nation, there is no issue of capital gain or loss. I am not receiving compensation for it (other than from Seeking Alpha). Photo by Andr Franois McKenzie via Unsplash. You may opt-out by. 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. There is none. A sixth issue is that blockchain is still years away from gaining real relevance. Its easy to read between the lines and know that what he is really saying is that they want to make their own blockchain. For one, there's the idea of scarcity. 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. But since there is no central oversight, and since Bitcoin investors are anonymous or pseudonymous by design, one should ask: what is there to stop market manipulation? Here are five problems with bitcoin that will cause it to fail eventually. Right now, it is the commercial banks that prohibit narrow banking. Your basis in cash is its value. The advantages that bitcoin . Why Bitcoin Will Fail. I believe investors are also placing their faith in the wrong asset. Watch this video to find out what are the reasons. Others make false promises and never act out on their plans of revolution. There is no control or central authority that oversees the transactions. why litecoin will fail. For example, phone #: 123-333-4567. 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. "Litecoin hasnt been the same since that announcement," he stated. However, we show that increasing the block capacity would be futile. While pioneering is always fondly remembered, it is not efficient to keep rolling with the prototype forever. 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. 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. 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. Nevertheless, in the end, Bitcoin will become the Myspace of cryptocurrencies and there are four main reasons why I believe so: 1. To build on this point, companies are also testing blockchain that's tethered to fiat currencies. 1. If Bitcoin is in the news, its price can fluctuate hundreds of dollars in a matter of hours. 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. 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. Fiat money has the value of the guarantee of the government that issues it. Save my name, email, and website in this browser for the next time I comment. During the last weeks I've read dozens of forum posts from people suggesting to use Litecoins instead of Bitcoins. I have seen articles that use bitcoin and cryptocurrencies as synonyms, but thats a mistake. scoop wilson county . [1] No one could have ever imagined that that seemingly unimpressive page would evolve into what has now become what the Internet is today. You should not use this article for that purpose. could go about investing and why people invest and hodl or hold BTC as a store of value. First of all, bitcoin is only as scarce as its programming dictates. Some think that Bitcoin is a monetary revolution, there's still lots of valid scenarios that explain why Bitcoin will fall. 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. 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. Oct 29, 2021. 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? al. Email *. Litecoin prices have declined sharply from their 2019 high, suffering significant lossesas the digital currency struggles with numerous challenges. However, with the price spiking in the thousands of dollars for a single Bitcoin, naysayers are suddenly singing a different tune. why litecoin will fail. His elective coursework included a number of political science courses, including International Politics, International Organizations, European Politics and other more basic political science courses. Predict the closing value of sensex and win free subscription. 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. Before establishing The Stuyvesant Square Consultancy, J.G. More engineers, investors, and advocates join its ranks everyday. Here's What Warren Buffett Has to Say. Realist, not conformist analysis of the latest financial, business and political news 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.

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