why litecoin will fail why litecoin will fail

A company called Coinbase has gone public, and Wall Street seems excited. I am not receiving compensation for it (other than from Seeking Alpha). Payouts Up. They predict that LTC will get as high as $153.301 by 2023. The fact that the digital cash system has simply existed for this long is a grand . He has been a guest speaker on numerous national radio and television stations and is a five time published author. Better yet, hit "like" and then hit the "Follow" button to the right of my photo in the same vicinity. So, why arent they as popular? Hype and media attention are temporary, though. Moh Hon Meng | Published on 04 Jun 2021 Facebook Twitter LinkedIn Email Whatsapp Whatsapp. 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. In fact, they have a public dossier of their educational materials given to law enforcement to help them understand what it is. The king of cryptocurrencies also has a utility problem. The Bid:Ask will collapse. A more apocalyptic scenario is bitcoin does the same thing to power that it did to gpu prices. Several analysts believe that the $20 transaction fee, which is higher than that of traditional payment systems . Its potential to change technology is as big as the Internet. The longer Bitcoin exists, the more difficult it becomes to mine, or create new coins. In a few months, it will have been eleven years since the Bitcoin network was launched by Satoshi Nakamoto. Therefore, to simply answer the question of the tile, no, Bitcoin is not going to fall this year. Another, newer, better, cryptocurrency could displace it just as MySpace was replaced by Facebook (FB) and Google (GOOG) (GOOGL) displaced Yahoo. Moh Hon Meng | Published on 04 Jun 2021 Facebook Twitter LinkedIn Email Whatsapp Whatsapp. Now, coders and miners must come to a consensus every time a decision about Bitcoins future must be made. Some are written from a management consulting perspective for companies that we believe to be under-performing and include strategies that we would recommend were the companies our clients. In short, blockchain is years away from being a mainstream technology. Is Litecoin still a good investment? The manipulators acting as buyer and sellerscan easily boost value before cashing out and enjoying their profits. He has managed countless federal and state tax audits to successful resolutions for clients. Unlike those investors, I dont slam the cryptocurrency asset class as something with no intrinsic value. 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. Let's STOP the madness! Bitcoins volatility makes it a terrible currency. Watch this video to find out what are the reasons. Bitcoin has a promising future as a store of value and a part of the world's monetary system. 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. Marshall School of Business, USC. (Presumably, negative rates could also be imposed on CBDC by giving a haircut to deposit accounts.) It is a common criticism made against the viability of Bitcoin . But when folks are buying into bitcoin, they're gaining ownership in digital tokens with zero ownership of the underlying blockchain. Thats it. 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. Blockchain can be used to reinvent supply-chain management and expedite overseas payments. 3 the same risk of being left out. I also offer advice that actually works in real life. The current Bitcoin market is extremely volatile. I am not confident that this future will come based on the reasons above. And yet, in 2021, a new bull rally brought it to the historic height of $65.000 per coin. 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. Feel free to do your own research, but from my experience, both blockchain technologies are also better suited for modern banking. So no, countries will not adopt bitcoin. Tim Enneking,managing director ofDigital Capital Management, also painted a less-than-optimistic picture of the digital currency. 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. Crypto critics have been expressing similar sentiments regarding Bitcoin, claiming that it is doomed to fail sooner or later. Here are five problems with bitcoin that will cause it to fail eventually. This is a BETA experience. As soon as you release cryptocurrency, whether it's an ICO token or something else, there's a huge target out for you. Still, for the most part, people don't believe in Litecoin, which is why LTC lost its positions, according to CoinMarketCap. To date, only 18.51 million bitcoin tokens are in circulation, with an estimated 40% of these held by small group of investors. He will also address the recently skyrocketing price of bitco. The longer Bitcoin exists, the more difficult it becomes to "mine," or create new coins. All of the original ideas for possible use cases for the blockchain are actually coming true through Ripple, not Bitcoin. why litecoin 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. Realist, not conformist analysis of the latest financial, business and political news As we saw with the GameStop (GME) short squeeze, a relatively small group of traders can manipulate pricing of any asset. Posted: 4 Feb 2019 Last revised: 2 Oct 2022. 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]. You are just one step away from creating your watchlist! You can read his blog here. Today, the market has way more newcomers, so the percentage of Libertarians is much smaller as more casual people join to invest in hopes of getting rich, rather than trying to start a revolution. Join This Elite Group - Sign Up Here: https://www.huefinancial.com Follow us on Twitter @HueFin_News Follow us on Instagram To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. Many people have been rewarded for holding onto their Bitcoins for dear life, but good news can only last for so long.[7]. You wouldnt pay in bitcoin because your fear is that two weeks later, bitcoins value goes up by 20%. 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. 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. 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 price hasnt quite declined yet to 2019 lows, 30 day average tweet volume on Litecoin is at its lowest level this year," said Frank. 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. Active revolutionaries who are pushing for a collapse are in short supply. Why Is Annaly Capital Management's Dividend So High? Newcomers are dumping their money into Bitcoin, hoping that the price will only continue to grow. I have seen articles that use bitcoin and cryptocurrencies as synonyms, but thats a mistake. When explaining the cryptocurrency's notable decline, analysts have pointed to several factors. Youre reading a free article with opinions that may differ from The Motley Fools Premium Investing Services. 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. Why Bitcoin Will Fail to Scale? This is not sustainable over the long term. Sentiment investing has risen by a lot in the last couple of years, stemming from inexperienced retail investors joining in popular, hype-driven rallies. 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. Im saying that bitcoin will fail. Making the world smarter, happier, and richer. Another reason bitcoin has done so well is the expectation of a digital revolution. Here are 10 reasons you should avoid bitcoin like the plague. Bitcoin et. Oct 29, 2021. Finally, private cryptocurrency values can rise and fall astronomically on volatility, so Bitcoin et. Additionally, they are periodically updated and refined, to keep up with the requirements of the market. There is a lot of excitement surrounding Bitcoin and cryptocurrencies, but we would like to sound a cautionary bell against investing in them. When Bitcoin started its journey towards financial triumph, the price of a single BTC was less than a single penny. They will issue their own versions instead and then ban bitcoin. 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 . Bitcoin keeps going up lately, but eventually it will come back down, experts say. On a year-to-date basis, through Wednesday evening, Oct. 14, bitcoin was up just shy of 60%. "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. Why Bitcoin will fail. If you think preparing your federal income taxes stinks now, try preparing them after investing in and/or using bitcoin in any transaction. 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. Its much easier to imagine a worthless, privately issued, cryptocurrency.). Summary. However, we show that increasing the block capacity would be futile. As the flagship symbol of the cryptocurrency asset class, Bitcoin slammed bear prediction after bear prediction. We believe CBDC, and its utility to create narrow banking will eventually upend the whole banking sector and with it much of the enormous regulatory, legal, and auditing infrastructure that exists to protect the public from the sometimes egregious excesses of commercial bank incumbents. Anyone considering it should be prepared to lose their entire investment.]. could go about investing and why people invest and hodl or hold BTC as a store of value. 2 India's Bitcoin Kidnappings. Thus, bitcoin offers the perception of scarcity without actually being scarce. One is that low-quality altcoins took over, and the second is that commodities exchanges launched Bitcoin futures. If one revolutionary group like Anonymous can fall apart, whats to stop Bitcoin from suffering the same fate? Please disable your ad-blocker and refresh. Bitcoin is what is known as a first-generation blockchain, meaning that it was the first of its kind. 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. Everyone's Down on Block. Some think that Bitcoin is a monetary revolution, there's still lots of valid scenarios that explain why Bitcoin will fall. Dec 29 "Why Bitcoin is the largest Ponzi scheme in human history" - Linkedin | $14,617.28. Here are 10 reasons you should avoid bitcoin like the plague. Oops! Please. 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. Invest better with The Motley Fool. ", 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.". The inflationary spiral is notorious and it could bring Bitcoin to its end. He told Currency.com: "Crypto could disappear forever because crypto is just centralised projects creating tokens and coins at will. Others discuss new management strategies we believe will fail. Bitcoin may enjoy first-mover advantage at the moment, but the barrier to entry in the cryptocurrency space is especially low. They are fully aware that not everyone who uses Bitcoin is a criminal. 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. Extreme volatility is a given with digital currencies like bitcoin, and history would suggest that significant downside from its current price is a near certainty as well. Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. The advantages that bitcoin . 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. They are mostly written from a public policy, economic, or political/geopolitical perspective. 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. The most valuable thing about Bitcoin is that it introduced blockchain technology to the world. 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]. The spread between the bid and ask on Bitcoin, for which the value is, at best, opaque, can vary considerably. Consequent years are also predicted to be positive, with LTC being valued at $352.793 by 2027. 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.". Its existence, highlights, and failures have birthed a global crypto industry estimated to have reached over $2 trillion this April. "Nothing is too big to fail," says . If this has the remotest possibility of becoming true, it means that bitcoin is in competition with national currencies. But it is not. Bitcoin doesnt even have that. Crypto You wont. 3. 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. Over the years, bitcoin has enjoyed massive success both as an asset and as a blockchain asset. 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.). Wiktor Jaszczuk's talk will focus on issues and desired outcomes arising from cryptocurrencies. Bitcoin goes UP. Who is minding the store? Checking with friends and colleagues, that seems to have been the case for most people in metropolitan areas. Barely a decade after its launch, Bitcoin rose from its humble beginnings to reach a market cap of 1 trillion US dollars. 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. 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. In 2013, 44 percent of the Bitcoin supply belonged to people who identify as Libertarian. It's time to stop the confusion. Carnegie Mellon University - David A. Tepper School of Business. Once the fall starts, it will come hard and fast. What does this mean? Theyre even going to process the financial transactions of American Express. There is no clear business plan mapping out Bitcoins future. Before establishing The Stuyvesant Square Consultancy, J.G. Whatever other advantages that bitcoin might have over fiat money, such as speed of transactions, will be eroded when fiat money becomes fully digital. Param Vir Singh. The most enthusiastic supporters of Bitcoin are revolutionaries. al., are to criminal activity what water is to a wet sponge: it permeates all manner of criminal activity. filed 20 April 2021 in Economics. This could prove somewhat accurate with the pandemic highlighting the potential for physical cash to be a carrier of harmful germs. As a result,litecoin "outperformed" at the start of the year, notedMati Greenspan, senior market analyst for social trading platformeToro. Bitcoin falls dramatically short of the scale provided by banks for payments. This is where competition comes into play. Vitalik Buterin is the boy genius creator of Ethereum. Jamie founded Listverse due to an insatiable desire to share fascinating, obscure, and bizarre facts. I now have had my foggy crystal ball for quite a long time. All over the world, homes of suspected Satoshis have been raided. I wrote this article myself, and it expresses my own opinions. WHY BITCOIN WILL FAIL: foreword by Craig S Wrong [Sakamoto, Natoshi, Wrong, Dr Criag S] on Amazon.com. The massive amount of liquidity in the markets right now, from the monetary and fiscal policies of many governments to combat covid, is an important reason for the rise in the value in bitcoin. Cryptocurrency is here to stay, but Bitcoin and its clones will be obsolete, probably within this decade. But the reasons why Bitcoin cannot succeed in the long run go so much deeper than that. Bitcoin has many issues and will at some point fail. "Bitcoin is a nothing-burger . I wrote this article myself, and it expresses my own opinions. 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. Read more about currencies on 10 Banknotes With Hidden Images And Symbols and 10 Strange Forms Of Ancient Currency. Updated: 28 May 2021, 07:46 AM IST Moh Hon Meng. Coinbase is a cryptocurrency exchangeit allows you to buy, store, and trade cryptocurrencies, which are invented kinds of alternative moneys. They are in charge of what the world currently uses for banking transfers. Collins spent some 30 years building a career in executive and consulting financial roles, with a particular emphasis in business taxation. Shannon Quinn (shannquinn.com) is a writer and entrepreneur from the Philadelphia area. This is a subscriber only feature Subscribe Now to get daily updates on WhatsApp. 2 Reasons to Avoid a Roth 401(k) for Your Retirement Savings, Want $1 Million in Retirement? 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 sentiment surrounding litecoin has grown weak lately, according to data provided byTheTIE.io, which analyzes social media activity. [Ed note: Investing in cryptocoins or tokens is highly speculative and the market is largely unregulated. This is to say that bitcoin buyers believe the utility of paper money has come and gone. 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? Without any clear vision of where Bitcoin is going, there is very little for an investor to count on or to have faith in. BUT, let's. (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.). Euromoney explains Blockchain in greater detail. Even after bouncing back,the digital currency is still far below its 2019 high. In that sense, it is like a piece of artwork. The most obvious disaster scenario is a speculative bubble followed by a crash. In fact, it is likely to keep getting worse.[6]. So far, so good, right? However, they believed that Bitcoin Cash still did not solve the problems, so there was a much-contested plan to create yet another hard fork called Bitcoin Gold. 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. 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). At this point in time, the only way to truly have an anonymous and untraceable financial transaction is with cold, hard cash. Over the years we've heard many reasons why Bitcoin will fail. 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. Fiat money is heavily defended by the government issuing it. 3 Luglio 2022; pocono cabin rentals with hot tub; british lions 1974 infamous '99 call . Statements herein do not represent, and should not be considered to be, investment advice. 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. 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. While there are many compelling theories about his true identity, no one knows exactly who he is. why litecoin will fail >>CLICK HERE<< to change your financial future! Just think of it this way: if you have bitcoin, will you use it to purchase anything? why litecoin will fail. Your basis in cash is its value. Learn More. *Average returns of all recommendations since inception. July 3 2022. why litecoin will fail3 bedroom house to rent shotton. Two reasons. The use of this website constitutes acceptance of our user agreement. Ripple has their own cryptocurrency, called XRP. 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. The appeal that a lot of Americans see in Bitcoin is that they believe they can avoid paying taxes to the IRS, which is also a crime. But stopping criminals and collecting taxes due is not just the only advantage of CBDC. Transaction Costs are Too High. Is this happening to you frequently? It has demonstrated clear stability in the past 12 years, with price and network strength pushing forward year after year. Pretty nifty I would say. Campaign collateral he developed for political campaigns has been used in university courses as an excellent example of persuasive campaign advertising. One person can read the same exact paragraph in the Bitcoin White Paper and come up with a totally different interpretation of Satoshis words than the next person. Since then, it has performed better. Some hope that people will rise up and choose to go with Bitcoin instead of using traditional banks. 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. Almost all of the banks in the world use SWIFTs now-outdated technology, and they handle quadrillions of dollars. Why Bitcoin Will Fail. While money sent through Paypal takes mere seconds to arrive in your account, Bitcoin may take up to a couple of hours. The only downside was that a lot of these coins were fraudulent. Once the trend fades away, we are left asking ourselves whether Bitcoin will actually manage to beat its competitors when the dust settles. Plus, we'll give our update price forecast for Litecoin (LTC). However, when one looks at the big picture, it becomes clear that Bitcoin will struggle to survive. 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. A sixth issue is that blockchain is still years away from gaining real relevance. Litecoin hasnt been the same since that announcement," he stated. 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. 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. Sean Williams owns shares of Mastercard, and has no position in any cryptocurrencies mentioned. If you have an ad-blocker enabled you may be blocked from proceeding. Predict the closing value of sensex and win free subscription. Why does bitcoin continue to outperform equities? The application costs $5,000, and there are 500 pages of legal paperwork that would require a team of taxation lawyers to decipher. 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. They would strategically partially ll the blocks by including But with state backed currency of ones own nation, there is no issue of capital gain or loss. 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. 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. 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. Here are the top reasons. A few fake coin companies took millions of dollars from desperate people who were trying to invest so they could get rich on these ICOs. The sole exceptions are some small food vendors and an occasional fruit cart. 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. In our view, Bitcoin is a bit like the Wild West of investing, back to the days before there was an SEC. Intuitively, one would expect that increasing the block capacity would solve this scaling problem. But as good as bitcoin has been for investors in 2020, my blunt opinion is that it's a terrible investment. I have no business relationship with any company whose stock is mentioned in this article. "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 . Once investigation agencies all over the world began searching for him, Satoshi Nakamoto disappeared. I have no business relationship with any company whose stock is mentioned in this article. 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. why litecoin will fail. There is a lot of excitement surrounding Bitcoin and cryptocurrencies, but we would like to sound a cautionary bell against investing in them. His elective coursework included a number of political science courses, including International Politics, International Organizations, European Politics and other more basic political science courses. He spent four years in the infantry before transitioning to the . instantaneously among all users. When the dust settles and the emotions fade away, pragmatism will become much more relevant, and these currencies will show their true potential. (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.).