Here's why Litcoine (LTC) will fail as digital silver? Frank added that "LTC is also experiencing the largest drop in long-term sentiment among any of the largest coins.". Some hope that people will rise up and choose to go with Bitcoin instead of using traditional banks. Secure Your . Here are the top reasons. 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. The negative interest rates, it is assumed, would stimulate purchasing under a use it or lose it assumption. Im not saying that cryptocurrencies will fail. 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. Finscreener. Just like any other speculative asset, no one really knows what is going to happen in the future. 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. The advantages that bitcoin . Another reason bitcoin has done so well is the expectation of a digital revolution. The fact that the digital cash system has simply existed for this long is a grand . 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. Photo by Andr Franois McKenzie via Unsplash. Remove some to bookmark this image. Even after bouncing back,the digital currency is still far below its 2019 high. Governments have the power to tax their people and businesses, the ability to sell public assets, issue bonds and other ways to guarantee their currencies. People becoming millionaires from this cryptocurrency spring up all around. The license promises to comply with United States taxation laws and regulations. It has demonstrated clear stability in the past 12 years, with price and network strength pushing forward year after year. However, this relationship has broken [+] down lately. There are already bigger, better, and faster versions of blockchain that made improvements on the original Bitcoin, like Ethereum and Ripple. The second argument against Bitcoin is that the digital currency is too volatile to work as a reliable currency. This is a BETA experience. 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. But even a piece of artwork has the ability to beautify the space that it occupies. It was mostly fear of a mostly unknown virus that people were led to believe could infect surfaces. Now, coders and miners must come to a consensus every time a decision about Bitcoins future must be made. 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. Why bitcoin will fail. Once investigation agencies all over the world began searching for him, Satoshi Nakamoto disappeared. 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. Bitcoin price analysis for today shows Bitcoin price has settled at $22 . But he expressed concerns (shared by the Fed) that a narrow bank would disrupt incumbent commercial banks at risk to the financial system. Mind you, we've already witnessed multiple 80%-plus declines in bitcoin throughout its history. "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. Since the Bitcoin founder Satoshi Nakamoto is no longer publishing his opinions, all coders have left is the documentation he left behind. Additional disclosure: The views expressed, including the outcome of future events, are the opinions of the firm and its management only as of March 21, 2021, and will not be revised for events after this document was submitted to Seeking Alpha editors for publication. The most well-known of these are Bitcoin and Ethereum, but there are 4,000 different kinds of . Better yet, hit "like" and then hit the "Follow" button to the right of my photo in the same vicinity. Others make false promises and never act out on their plans of revolution. They are in charge of what the world currently uses for banking transfers. He also spoke to litecoin's long-term sentiment score, emphasizing that it was the lowest of the five major digital currencies. He and his pool cronies would raise trading volumes, plant press stories, spread rumors, and boost stock prices through wash sales having a seller and buy acting in tandem, effectively passing the same cash, plus a bit more, to boost the price more, but all among themselves. As Bitcoin gained market traction, it became more difficult, expensive, and slow; now that it has dropped to its lowest point in 18 months, some are questioning its worth. Bitcoin goes DOWN. On March 1, the crypto market capitalization (TOTALCAP) was rejected by the $1.04 trillion resistance area. Many people have been rewarded for holding onto their Bitcoins for dear life, but good news can only last for so long.[7]. Bitcoin is what is known as a first-generation blockchain, meaning that it was the first of its kind. His elective coursework included a number of political science courses, including International Politics, International Organizations, European Politics and other more basic political science courses. The rising price of the asset turned some of its fiercest . Hype and media attention are temporary, though. The inflationary spiral is notorious and it could bring Bitcoin to its end. If the debit is recorded on the ledger, the transaction is written in stone. It's time to stop the confusion. But the reasons why Bitcoin cannot succeed in the long run go so much deeper than that. There is no control or central authority that oversees the transactions. And yet, in 2021, a new bull rally brought it to the historic height of $65.000 per coin.. As the flagship symbol of the cryptocurrency asset class, Bitcoin slammed bear prediction after bear prediction. In December 2020, an eight-year-old boy was kidnapped in Karnataka while walking with his grandfather. Cryptocurrency is here to stay, but Bitcoin and its clones will be obsolete, probably within this decade. "Both of those currencies have large and devoted followings and developers, whereas LTC hasnot much," claimedHendricks. 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. 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]. subscribe to DDIntel at https://ddintel.datadriveninvestor.com. Of course not. Rising Cost of Mining. Other cryptocurrencies actually have leaders to guide them. Bitcoin is a utopian dream. 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. The Motley Fool owns shares of and recommends Mastercard, and has no position in any cryptocurrencies mentioned. The most enthusiastic supporters of Bitcoin are revolutionaries. Let's STOP the madness! Litecoin prices, which have enjoyed a sustained rally over the last several months, have climbed more than 1,700% year-to-date (YTD). Unlike those investors, I dont slam the cryptocurrency asset class as something with no intrinsic value. 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. Im saying that bitcoin will fail. Bitcoin isn't really scarce. In Coinbases privacy policy, they state that they will keep your name, address, phone number, and more for up to five years and will give it to law enforcement if there was ever a subpoena.[2]. Its potential to change technology is as big as the Internet. I am a financial writer and editor who focuses on investments. Bitcoin may enjoy first-mover advantage at the moment, but the barrier to entry in the cryptocurrency space is especially low. Transactions can take up to six hours at busy times of the day, because it averages 15 transactions per second. As the flagship symbol of the cryptocurrency asset class, Bitcoin slammed bear prediction after bear prediction. (Opinions here with respect to whether to buy, sell, or hold such companies, however, assume the company will not change its current practices). 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. why litecoin will fail >>CLICK HERE<< to change your financial future! WalletInvestor is somewhat positive with their predictions. "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 . All over the world, homes of suspected Satoshis have been raided. Investing in bitcoin is not investing in blockchain tech. Copyright HT Digital Streams Limited All rights reserved. it prompted the attention of important figures of the modern world, such as Elon Musk, as the Tesla Technoking made an infamous $1.5 billion. Its existence, highlights, and failures have birthed a global crypto industry estimated to have reached over $2 trillion this April. "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 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. Failure Reason #3: Ethereum-Related Cyber Crime. This would be fatal to their monetary systems! 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). To date, only 18.51 million bitcoin tokens are in circulation, with an estimated 40% of these held by small group of investors. This is not sustainable over the long term. As soon as you release cryptocurrency, whether it's an ICO token or something else, there's a huge target out for you. Litecoin prices have declined sharply from their 2019 high, suffering significant lossesas the digital currency struggles with numerous challenges. 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. 10 Reasons Why A Nuclear War Could Be Good For Everyone, 10 Scientific Reasons Society Is Like It Is And Why, Top 10 Reasons Why 'Friends' Is The Most Confusing, Top 10 Successful Movies Everyone Expected To Fail, 10 Facts That Show Why Caligula Was Rome's Craziest Emperor, 10 Superpowers Real People Have (And Why They're Terrible), 10 Popular Dog Breeds And Why They Were Bred, 10 Controversial Toys You Might Already Have in Your Home, Ten Absolutely Vicious Fights over Inherited Fortunes, 10 Female Film Pioneers Who Shaped the Movies, Ten True Tales from Americas Toughest Prison, 10 Times Members of Secretive Societies and Organizations Spilled the Beans, 10 Common Idioms with Unexpectedly Dark Origins, 10 North American Animals with Misplaced Reputations, 10 Banknotes With Hidden Images And Symbols, 10 Facts About NASAs Failed Dolphin Communication Project, Top 10 Scavenger Hunts With Unexpected Consequences, 10 Attempts To Create An Ideal Universal Language, 10 Facts About The Kamikaze You Probably Didnt Know, Top 10 Explosive Historical Facts And Calamities About Dynamite. They will issue their own versions instead and then ban bitcoin. Sounds like those bear predictions I was talking about earlier. The issue with creating decentralized "cryptocurrency", is that there will be no one to keep it stable. Cardano has a capped market supply and a staking rewards system that encourages decentralization and management of the network by its members alone. Here's What Warren Buffett Has to Say. (Presumably, negative rates could also be imposed on CBDC by giving a haircut to deposit accounts.) 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. In short, blockchain is years away from being a mainstream technology. Whereas physical metals, such as gold, are limited to what can be mined from the earth, bitcoin's token count is limited by computer programming. I think the most likely way that bitcoin fails is that the people in power simply change the rules, as they have been known to do. (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.). "This is pure profit taking by people who are smart enough to know that LTC is neither bitcoin, nor is it ethereum," he stated. Time to Buy These 3 Dividend Machines? Central Bank Digital Currency, or CBDC, has been a notion since at least the mid-to-early 2010s. The Motley Fool has a disclosure policy. filed 20 April 2021 in Economics. At this point in time, the only way to truly have an anonymous and untraceable financial transaction is with cold, hard cash. Stocks have real value because of the companies ability to create profits from the goods and services that they sell. It is not a currency, it is not a store of value, it is not an inflation . 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. 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. Litecoin prices have frequently followed those of bitcoin. 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. Dec 30 "BitcoinThe Andromeda Strain of Computer Science Research" - SMBlog | $14,669.04. In case you cant find any email from our side, please check the spam folder. You might pay 10,000 BTC to buy a pizza today but if the Bitcoin prices triple next week, the whole . 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. See all articles by Nikhil Malik Nikhil Malik. Whether or not that's true, it's certainly possible considering Bitcoin's history of fast, wild gains and that possibility is precisely what makes Bitcoin an unrealistic currency. If Bitcoin is in the news, its price can fluctuate hundreds of dollars in a matter of hours. 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. A sixth issue is that blockchain is still years away from gaining real relevance. Volatility. The basis of the things you buy with it is the price you paid for them. 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. Let's cut to the chase, With China & other various countries banning crypto, Unless it's regulated by the government, it will fail. The longer Bitcoin exists, the longer it takes for these computer systems to process the information. There are simply too many benefits for governments both in the USA and among most of the G20 to adopt CBDC. The major company that runs the convention is called Society for Worldwide Interbank Financial Telecommunication (SWIFT). This is incorrect. 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. 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. Almost all of the banks in the world use SWIFTs now-outdated technology, and they handle quadrillions of dollars. On a year-to-date basis, through Wednesday evening, Oct. 14, bitcoin was up just shy of 60%. 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. Everyone's Down on Block. There is no guarantee that it will ever improve. In that sense, it is like a piece of artwork. TL;DR Breakdown. That is because you didnt buy bitcoin to use as a currency. The 'deflationary spiral' is a real condition that affects the popular fractional reserve backing system. Name *. Once the fall starts, it will come hard and fast. Bitcoin is also an unregulated asset. Bitcoin also benefits from its first-mover advantage in the cryptocurrency space. By allowing Bitcoin trading (and in particular short selling) on a . To build on this point, companies are also testing blockchain that's tethered to fiat currencies. Whereas physical metals, such as . This is where competition comes into play. 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? Bitcoin prices regularly dip and soar, making it impossible to predict whether it will be worth tomorrow what it is worth today. Pretty nifty I would say. 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