why litecoin will fail

The application costs $5,000, and there are 500 pages of legal paperwork that would require a team of taxation lawyers to decipher. Learn More. Campaign collateral he developed for political campaigns has been used in university courses as an excellent example of persuasive campaign advertising. 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. Thus, bitcoin offers the perception of scarcity without actually being scarce. Stocks have real value because of the companies ability to create profits from the goods and services that they sell. Bitcoin doesnt even have that. When Bitcoin was launched, everyone was excited about the almost negligible transaction costs. Many people have been rewarded for holding onto their Bitcoins for dear life, but good news can only last for so long.[7]. Frank added that "LTC is also experiencing the largest drop in long-term sentiment among any of the largest coins.". The Motley Fool owns shares of and recommends Mastercard, and has no position in any cryptocurrencies mentioned. 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. I now have had my foggy crystal ball for quite a long time. "This is pure profit taking by people who are smart enough to know that LTC is neither bitcoin, nor is it ethereum," he stated. But, also, credit card reader technology is ubiquitous. In 2013, 44 percent of the Bitcoin supply belonged to people who identify as Libertarian. The current Bitcoin market is extremely volatile. 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. Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. You wouldnt pay in bitcoin because your fear is that two weeks later, bitcoins value goes up by 20%. 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. Shannon Quinn (shannquinn.com) is a writer and entrepreneur from the Philadelphia area. But the reasons why Bitcoin cannot succeed in the long run go so much deeper than that. It'll just take a moment. From seemingly out of nowhere, what was once an obscure technocrats' dream now has thousands of evangelizers shouting its glory. He will also address the recently skyrocketing price of bitco. This is where competition comes into play. He spent four years in the infantry before transitioning to the . (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. In fact, on the Indian rupee note, you will see a promise to pay the bearer" issued by the RBI governor. They are in charge of what the world currently uses for banking transfers. "Both of those currencies have large and devoted followings and developers, whereas LTC hasnot much," claimedHendricks. That is because you didnt buy bitcoin to use as a currency. why litecoin will fail bitcoin futures ethereum futures cardano futures litecoin futures binance futures. I am not receiving compensation for it (other than from Seeking Alpha). Why Bitcoin will fail. [1] No one could have ever imagined that that seemingly unimpressive page would evolve into what has now become what the Internet is today. But stopping criminals and collecting taxes due is not just the only advantage of CBDC. By no means are cryptocurrencies the only asset to be hacked by thieves, but there are serious fraud and theft concerns that accompany bitcoin. On a year-to-date basis, through Wednesday evening, Oct. 14, bitcoin was up just shy of 60%. 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. 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). Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services. The 'deflationary spiral' is a real condition that affects the popular fractional reserve backing system. There's another reason why so many cryptocurrencies fail - a lack of security. However, with the price spiking in the thousands of dollars for a single Bitcoin, naysayers are suddenly singing a different tune. Your basis in cash is its value. No matter how excited investors are about bitcoin and its underlying blockchain, history suggests it won't be enough to match lofty expectations. Log in to our website to save your bookmarks. Clearly, the reasons why Bitcoin will fail are outnumbered by the reasons Bitcoin will succeed. Consequently, central bankers will inevitably issue CBDC. It's only a matter of time. 3. "It threw everyone into a panic. Sounds like those bear predictions I was talking about earlier. We associate with principals of Technometrica on survey work in some elements of our business. July 3 2022. why litecoin will fail3 bedroom house to rent shotton. 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. With bitcoin, there is no tangible data for investors to wrap their hands around. Before establishing The Stuyvesant Square Consultancy, J.G. On March 1, the crypto market capitalization (TOTALCAP) was rejected by the $1.04 trillion resistance area. Litecoin hasnt been the same since that announcement," he stated. If this has the remotest possibility of becoming true, it means that bitcoin is in competition with national currencies. The spread between the bid and ask on Bitcoin, for which the value is, at best, opaque, can vary considerably. Cryptocurrency is here to stay, but Bitcoin and its clones will be obsolete, probably within this decade. The sole exceptions are some small food vendors and an occasional fruit cart. Investing in bitcoin is not investing in blockchain tech. Once investigation agencies all over the world began searching for him, Satoshi Nakamoto disappeared. "LTC's tweet volume peaked in June alongside market cap and has since seen a decline of over 50% since June highs," he noted. The chart below depicts the long-term sentiment of these cryptocurrencies: Long-term sentiment scores of major cryptocurrencies. why litecoin will fail >>CLICK HERE<< to change your financial future! I have no business relationship with any company whose stock is mentioned in this article. They have proven that they can work with large corporations, banks, and credit card companies. 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. Reading about bitcoin. "Now that the alt markets are sluggish, they're taking some profits off the table.". could go about investing and why people invest and hodl or hold BTC as a store of value. Blog Inizio Senza categoria why litecoin will fail. Close Menu. Business, Economics, and Finance. The negative interest rates, it is assumed, would stimulate purchasing under a use it or lose it assumption. 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. Nevertheless, in the end, Bitcoin will become the Myspace of cryptocurrencies and there are four main reasons why I believe so: 1. For context, global gross domestic product was $81 trillion in 2017. These are formidable powers that give the confidence that the value of the currency will be there. 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. They will issue their own versions instead and then ban bitcoin. 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]. Read more about currencies on 10 Banknotes With Hidden Images And Symbols and 10 Strange Forms Of Ancient Currency. Thats it. I am not confident that this future will come based on the reasons above. For example, if you bought a single bitcoin token at $11,000, then used a fraction of your bitcoin to buy a new smartphone for $1,000, you'd have to calculate the value of your bitcoin used at the time of the transaction and recognize capital gains or losses relative to your cost basis. The longer Bitcoin exists, the more difficult it becomes to mine, or create new coins. NOTE: Our commentaries most often tend to be event-driven. 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. But with state backed currency of ones own nation, there is no issue of capital gain or loss. There is no control or central authority that oversees the transactions. What does this mean? 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. Almost all of the banks in the world use SWIFTs now-outdated technology, and they handle quadrillions of dollars. "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. 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. 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. However, even though Bitcoin was the first to introduce blockchain to the world, its not necessary for blockchain to exist. But by depreciating the exchange value of paper currency relative to CBDC, Haldane reasoned, central bankers could effectively impose negative interest rates. In the US dollar, you will see the words legal tender", which means the same thing. Today, bitcoin serves as the intermediary asset on a number of crypto investment platforms if you want to purchase a less-common token (i.e., anything not named Ethereum or Ripple). WalletInvestor is somewhat positive with their predictions. 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. Why Is Annaly Capital Management's Dividend So High? Bitcoin keeps going up lately, but eventually it will come back down, experts say. why litecoin will fail. Last Updated on June 19, 2022 by . Now, imagine a present-day Joe Kennedy and his cronies driving prices up with millions of computerized trades. Second, and simultaneously, Treasury should issue a USD based CBDC. So a debit to your account appears as a debit across the entire Blockchain infrastructure. They predict that LTC will get as high as $153.301 by 2023. There are over 20,000 crypto projects now and most are pointless. When there is such a huge spotlight on an activity that is known for tax evasion, it is obviously something that law enforcement takes notice of. For example, Mastercard (MA 1.67%) was awarded a patent in July 2018 "for linkage of blockchain-based assets to fiat currency amounts." Youre reading a free article with opinions that may differ from The Motley Fools Premium Investing Services. This produced an extended upper wick (red icon). 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. "Bitcoin is a nothing-burger . It's time to stop the confusion. Many old-school investors who havent done their research will simply say its in an economic bubble and call it a day. You may opt-out by. To make the world smarter, happier, and richer. Dec 29 "Why Bitcoin is the largest Ponzi scheme in human history" - Linkedin | $14,617.28. 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. You might pay 10,000 BTC to buy a pizza today but if the Bitcoin prices triple next week, the whole . 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. al., all fail as a reliable store of value or as a medium of exchange. 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. Transactions can take up to six hours at busy times of the day, because it averages 15 transactions per second. Right now, people are building bitcoin according to what is currently true, and what has been true in the past. Bitcoin et. I have no business relationship with any company whose stock is mentioned in this article. Once the fall starts, it will come hard and fast. 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]. First, ban trading in, and ownership of, Bitcoin and its clones, just as President Roosevelt. "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 . Updated: 28 May 2021, 07:46 AM IST Moh Hon Meng. "News of the halving pushed Litecoin prices" higher, saidJoe DiPasquale, CEO ofcryptocurrency hedge fund managerBitBull Capital, after which traders booked profits. Download the Mint app and read premium stories. al., are to criminal activity what water is to a wet sponge: it permeates all manner of criminal activity. Many small businesses in Californias Silicon Valley accept Bitcoin as a form of payment, but larger corporations still only accept cash and cards. 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. Others discuss new management strategies we believe will fail. Bitcoin has no purpose and provides no benefit. WHY BITCOIN WILL FAIL: foreword by Craig S Wrong why litecoin will fail. Bitcoin also benefits from its first-mover advantage in the cryptocurrency space. empowerment through data, knowledge, and expertise. If Bitcoin is in the news, its price can fluctuate hundreds of dollars in a matter of hours. After Lee disclosed this information, "peoples perspective of Litecoin changed," maintained Garcon. why litecoin will fail. 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. 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. Collins spent some 30 years building a career in executive and consulting financial roles, with a particular emphasis in business taxation. Please. Without any clear vision of where Bitcoin is going, there is very little for an investor to count on or to have faith in. Why Bitcoin Will Fail. Jamie founded Listverse due to an insatiable desire to share fascinating, obscure, and bizarre facts. Note: All information on this page is subject to change. Photo by Andr Franois McKenzie via Unsplash. 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 . After that, a decline began, which accelerated on March 3. Why Bitcoin Will Fail . So far, so good, right? Over the long term, blockchain technology is where the real value lies. CEO of making fun of business and investing gurus online. There is a lot of excitement surrounding Bitcoin and cryptocurrencies, but we would like to sound a cautionary bell against investing in them. The only matter at issue is the timing of the wide adoption. This piece is to explain why you shouldnt invest in Bitcoin, et. If the debit is recorded on the ledger, the transaction is written in stone. Without the miners, the Bitcoin network collapses. 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. The advantages that bitcoin might have will erode when fiat money becomes fully digital. Here are the top reasons. -- Me on twitter. Outsiders buying in were suckers. Here are 10 reasons you should avoid bitcoin like the plague. For people outside of the complex and exciting world of cryptocurrency, Bitcoin can be hard to understand. There is no supporting entity that is charged with effectively maintaining the value of the cryptocurrencies. While pioneering is always fondly remembered, it is not efficient to keep rolling with the prototype forever. Feel free to do your own research, but from my experience, both blockchain technologies are also better suited for modern banking. If there are stocks you know you want to buy . Bitcoin is among the most polarizing investments in history. 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 . 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. Meanwhile, bitcoin has approximately $114 billion to $125 billion in tokens freely circulating and not held tight by investors. 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? Disclosure: I own some bitcoin, bitcoin cash, litecoin, ether and EOS. (Think Tulipmania or, more recently, the Dot Com bubble. However, he claims that it will take them over a year to actually get their technology up and running. Plus, we'll give our update price forecast for Litecoin (LTC). They insisted that his father, a wealthy investor, pay 100 Bitcoin ($2.3m) for his son's return. Answer (1 of 19): Just to throw out a contrarian view - sure bitcoin can fail. 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. This is pure profit taking by people who are smart enough to know that LTC is neither bitcoin, nor is it ethereum," he stated. Thought about writing a blog rant, but "OMG they're all totally crazy" wasn't long enough, so here we are. Right now it is mostly a speculative asset - around 70% of BTC transactions are for speculation with 30% for transactions. The value of Bitcoin is mainly driven by speculators followed by a euphoric momentum brought up by its investors. WalletInvestor Litecoin price prediction for 2022, 2023, 2025, and 2030. But when folks are buying into bitcoin, they're gaining ownership in digital tokens with zero ownership of the underlying blockchain. They Change The Rules. Summary. Predict the closing value of sensex and win free subscription. A majority of crypto enthusiasts have always believed that Bitcoin is the only cryptocurrency that is truly worth investing in. Its existence, highlights, and failures have birthed a global crypto industry estimated to have reached over $2 trillion this April. Whereas physical metals, such as . Please read our privacy policy and legal disclaimer. You are just one step away from creating your watchlist! The speed of transferring Bitcoin across the blockchain does not keep up with modern banking standards. A company called Coinbase has gone public, and Wall Street seems excited. Bitcoin'svalue as a globalasset, like gold, depends on people trusting it as a form of moneyand businesses accepting it for payment. Bitcoins volatility makes it a terrible currency. Share Prices Down. 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. The most obvious disaster scenario is a speculative bubble followed by a crash. (Opinions here with respect to whether to buy, sell, or hold such companies, however, assume the company will not change its current practices). 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. One major cause that market observers cited wasprofit taking. 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. It is in competition with national currencies. 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. Too many people are burned, reversing bitcoins momentum and value declines year after year. This is incorrect. An astute, data-driven observer of business, politics and economics, Mr. Collins has advised political candidates and public officials on campaign, political and policy matters for more than two decades, and has twice been a delegate to his political partys national quadrennial convention to nominate the American president. Logan Kane does a wonderful job explaining what Bitcoin is for the uninitiated and discusses the mechanics of how one could go about investing and why people invest and hodl or hold BTC as a store of value. Bitcoin price analysis for today shows Bitcoin price has settled at $22 . Bitcoin prices regularly dip and soar, making it impossible to predict whether it will be worth tomorrow what it is worth today. So those who believe bitcoin is destined to replace the dollar as the premier international reserve and settlement currency, and investing in it for that reason, are essentially betting on the . "Nothing is too big to fail," says . As soon as you release cryptocurrency, whether it's an ICO token or something else, there's a huge target out for you. 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.). Litecoin was designed to complement Bitcoin by solving issues like transaction timings and concentrated mining pools. You should not use this article for that purpose. If the debit is recorded on the ledger, the transaction is written in stone. Not a member yet? Photo by Andr Franois on Unsplash. First of all, bitcoin is only as scarce as its programming dictates. He has been a guest speaker on numerous national radio and television stations and is a five time published author. Right now, it is the commercial banks that prohibit narrow banking. The inflationary spiral is notorious and it could bring Bitcoin to its end. Nonetheless, the appeal of not having a Big Brother government sniff through your transactions will still outweigh this shortcoming. In New York, all businesses who want to accept Bitcoin are required to register for a BitLicense if they want to do business. Blockchain can be used to reinvent supply-chain management and expedite overseas payments. Oops! You are now subscribed to our newsletters. Euromoney explains Blockchain in greater detail here. Litecoin prices have declined sharply from their 2019 high, suffering significant lossesas the digital currency struggles with numerous challenges. 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. 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. Ask a skeptic, and they'll tell you it's a bubble that's about to pop. Little did investors foresee the Catch-22 that would arise. Commodities have real value because industries purchase them as raw materials to use in the production of goods and services.

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