Many of us who have delved into the financial revolution of the cryptocurrency world have gone with LiteCoin. Some of us have gone into it with our eyes closed without doing any research, others with blind optimism and wherever we are have probably had virtual dollar or pound symbols flashing through our mind, others have invested with total and utter confidence, and indeed, some people have been making some very comfortable returns but, for those of us, such as myself who invested in LiteCoin, no matter how well some of us may have done from it there must come a time where we need to seriously look at the massive, almost dangerous downturn in the cryptocurrency, once described as the savvy investors currency. However, if we look at the downturn, without sounding overly pessimistic or negative we have to be realistic and the truth is that if we are looking for cryptocurrencies to give us a comfortable financial future lets be real, it is not going to be through LiteCoin, there is much more of a possibility that it will be through BitCoin or Ethereum. And so what is it that has caused this analysis on LiteCoin and why, as I have suggested in the title why we should stop investing in the once popular cryptocurrency immediately.
Charlie Lee has made two massive errors that have, in my opinion cost him the future of LiteCoin which to me are errors which will destroy investor confidence which in turn will affect price confidence.
- In December 2017 it was announced that Charlie Lee, the founder of LiteCoin had sold off all of his holdings, this will in turn always have an effect as it shows that the founder had no confidence in his own creation and if a big wig has no confidence in his product the investor will have no confidence, to me this has effected the future of the currency and although we have seen a downturn in the past I personally believe that LiteCoin is due to fade into the annals of cyber-history. The weakness of LTC is a major concern and there comes a time where we all have to analyse the future of any currency, whether this was Bitcoin or Ethereum and for the sake of our investments, whether it be something as trivial as 0.001LTC (GBP£0.056p) or 17.81 LTC (GBP£1,000), more so the latter figure. Serious analysis and realism does have to override optimism on a very serious level, especially as this is concerning personal and entrepreneurial finance.
- Earlier this year in February, as a Valentines gift to the founders of LiteCoin cash he labelled it a scam. This of course is extremely bad business practice and again – whether it is true, or not, it will affect confidence, it is not something that you should openly come out and accuse, for the main reasons it could land one a law suite and to getting sued. That is something you expect from a playground argument rather than a supposedly successful business person and of course when analysing the future of anything in business and what is going wrong we do need to look at reasons.
When investors invest they are simply entering into a contract and with investment there needs to be confidence, whether it be from the smallest investors or the biggest, every single little investment does affect the future and once you break that confidence or do anything to jeopardise any reputation.
Of course investing in any cryptocurrency has a volatile price tag but the most volatile of this is LiteCoin and as an investor and having looked at these two incidents it is an analysis which can seriously affect confidence. With a price tag of 1LTC being at GBP£56.10 and continuously plummeting I have no doubt that it is linked to both issues mentioned in 1 and 2 of the above mentioned.
And so, if you were to ask me that due to the price of LiteCoin being so low is now the time to invest? At a point I would have said yes but to me this downhill trend is getting dangerous and I firmly believe that LiteCoin IS on its way out as it is showing no signs of even attempting to recover. I truly believe that LiteCoin is on its way out and if you are HODLING I seriously recommend that you withdraw your holdings immediately and sell off now and invest in either ETH or BTC, most definitely ETH though as its recovery from this weeks slip up is impressive and shows its strength from both the investor and its founder and I believe ether will overtake Bitcoin in this race which I will blog about in a separate post.
If I am wrong on LiteCoin I will be happy to admit it but I am extremely confident that the end of LTC is upon us. The least you could of course do if you have confidence in its future is withdraw a certain amount to your wallet and then leave a minimal amount you’d be comfortable to lose in case it does go south, as I have analysed.