On 27th August, Charlie Lee, the creator of Litecoin and Director of the Litecoin Foundation sat with the CNBC members to discuss the cryptocurrency market decline, especially Bitcoin and Litecoin. As the bear continues to chase the prices, Charlie Lee answered some of the tough questions on the subject.
The computer scientist was asked about Bitcoin surpassing the $20,000 mark, which is roughly the all-time high hit by the digital gold last December. Here, he stated the chances of Bitcoin taking a successful flight are unpredictable. He added:
“I’ve been in this space for seven years now, I think sometimes it comes back within six months a year, sometimes it takes like three or four years. so it’s kind of hard to say.”
Regarding the market prices reflecting the network performance or adoption of the cryptocurrencies, he conveyed that the prices will behave according to the success of cryptocurrencies in the future. However, in the short-run, the prices do not communicate much about their technical growth or viability.
He also cited that despite a drastic hike in the adoption of Bitcoin and Litecoin, their prices have dropped by 60-70%. He proceeded to say:
“I think it’s because it’s so volatile, it’s all about speculation these days… But in the future, the price will reflect the success of the currencies.”
During the interview, the host also mentioned the time when Charlie sold all his Litecoin, and enquired if the Founder views the current decline as an opportunity to go long. To this, he responded by stating that he sold his Litecoin due to conflict of interest and does not plan to buy them back in the foreseeable future. As a general advice to the hodlers, Charlie said that one must invest only an amount they are ready to lose. He said:
“I think it’s it’s always good to buy on the way down… That’s what I would recommend people to do… As long as you don’t spend money that you can’t afford to lose, I think that’s fine. I think it’s really bad for people who like mortgage their house, put all their money into a coin and then watch it drop like 80% but as long as you can afford to, I’d say spend some money buy some crypto it’s perfectly fine.”
Recently, Litecoin was also found to show zero activities according to the Github survey, in terms of developments in code and repository. The situation is also being addressed as a ‘developer bear-run break’ by many.