Litecoin (LTC) Founder Charlie Lee: Cryptocurrency Adoption, Scalability Solutions Should Be Top Priorities

  • Invest "only as much as you can afford to lose", Litecoin (LTC) founder Charlie Lee recently advised.
  • Lee also said that the crypto community should focus more no cryptocurrency adoption and scalability solutions such as Lightning Network and sidechains.

Litecoin (LTC) founder Charlie Lee recently told CNBC that “It’s hard to predict [cryptocurrency] prices.” Lee added that he’d been in the crypto space for seven years, and from what he has observed, “sometimes it takes six months to a year” for digital currency prices to recover.

The former director of engineering at Coinbase further noted that “sometimes it can [even] take three or four years [for the crypto market to bounce back. So,] it’s kind of hard to say.” When questioned during the interview about what crypto prices tell users about the market, Lee said “in the long-term, [prices] tell us about the success of cryptocurrencies.”

He continued:

“In the short-term, [crypto prices] don’t really tell us much...for example, this year, there has been so much adoption in bitcoin and litecoin, but the prices have dropped like 60-70%. So, I think it’s because it’s so volatile...it’s all about speculation these days. But in the future, the prices will reflect the success of the [crypto]currencies.”

Charlie Lee

Commenting on why he sold all his litecoins, and whether he sees the decline in crypto prices as a buying opportunity, Lee remarked that he sold his LTC because of “conflict of interest.”

He added that he was also not looking to buy LTC again. However, the MIT computer science graduate noted that “it’s always good to buy [crypto] on the way down to the dollar cost average or your buy-in. That’s what I would recommend people to do.”

Focus More On Crypto Adoption

Lee also cautioned investors about risky investments as he said that, “As long as you don’t spend money that you cannot afford to lose, [then] I think that’s fine”, meaning that investors should only invest as much money in cryptocurrencies as their budget, or income, allows them.

There have been many cases, which Lee pointed out, where people had mortgaged their house, but then put “all their money into a coin, and [then] watched its price drop like 80%.” He then recommended that,

“As long as you can afford to, I’d say that spending some money to buy some crypto is perfectly fine.”

Charlie Lee

In response to what he is expecting during the upcoming Litecoin Summit on September 14th, Lee said, 

“I want people to focus on technologies, on [crypto] adoption, and on how to [effectively] scale [blockchain networks].”

Charlie Lee

Need "More Talk Around" Lightning Network, Sidechains

According to the former Google employee, effective scaling solutions include the Lightning Network and sidechains and he’d like to see “more talk around them” in the crypto community. He also said that “with the [crypto] prices currently depressed, it’s actually a good time for people to sit down and have their head down [or focused] to get stuff done. This is what I’ve seen [happen] the past bear markets.”

As CryptoGlobe reported, Ethereum co-founder Joseph Lubin expressed similar views about the current bear market. Lubin had remarked that when cryptocurrency prices surged to all-time highs last year, developer activity also increased by “two orders of magnitude.”

While crypto prices have now dropped considerably, the Ethereum co-founder said we’re still witnessing a tremendous surge of interest and activity in the digital currency industry.

Bitcoin Continues Correction to the Downside Amid High Stakes — Price Analysis

Colin Muller
  • Short term trend: Good chance for an end to the downtrend soon
  • Medium term trend: Uptrend intact but coming under more pressure
  • Long term trend: Downtrend holding strong, unchallenged

As we correctly forecast here yesterday, Bitcoin (BTC) has completed its consolidation around $8,600 and continued to the downside in an extension of its correction from $9,100. It has entered clear support starting at about $8,200, and there is a decent chance of the correction find a bottom within that zone.

We start on the 4-hour and see that the drop in volume telegraphed today’s move down. The typical 3-wave movement of a correction is likely to find support above $8,140 or thereabouts, with support derived from recent resistance.

Within supportBTC chart by TradingView

The histogram is still pointing down hard at time of writing, implying that momentum is still to the downside and might take a bit more time to bleed off. Of course, all of this assumes that Bitcoin’s movement here is a simple correction and not a trend change; in other words, this assumes that the medium-term trend is still up, which may well turn out to be false.

If we take a look at the daily, we see that the scope for a retracement is liberal within the medium timeframe uptrend, starting on January 3. Price can come down to $7,700 without setting off major alarm bells within this market structure; down, namely, to the “golden pocket” .618-65 area of the Fibonacci scale.

Plenty of roomBTC chart by TradingView

We see that the RSI here is engaging a key inflection point on its scale, around 50%. Ideally, we’d like to see this hold and preserve a strong medium uptrend. The histogram looks alarming here, poised to cross over negative with a decent momentum. It is noteworthy that the last two times we’ve seen this, Bitcoin was bought up at the 11th hour and the medium uptrend preserved.

High stakesBTC chart by TradingView

Finally, moving to the weekly chart, we see the larger picture and the overall risky position that Bitcoin is in. The leading crypto has so far soundly failed to break out of the downtrend it's been in for seven months, and failed to surmount the important $9,100 mark.

At this point, it is threatening to again lose the 21-week EMA; and this would put the 55 EMA into serious question. This week is likely very important for setting Bitcoin’s trend in 2020 – and so far, things are not looking great.

The views and opinions expressed here do not reflect those of CryptoGlobe.com and do not constitute financial advice. Always do your own research.

Featured Image Credit: Photo via Pixabay.com