"Of course, traders are taking profits from an asset with no mass appeal, an ever-expanding competitive landscape, no exciting developments to rally around and a founder with no skin in the game. Clearly, the reasons why Bitcoin will fail are outnumbered by the reasons Bitcoin will succeed. However, they believed that Bitcoin Cash still did not solve the problems, so there was a much-contested plan to create yet another hard fork called Bitcoin Gold. Three years ago, when blockchain companies and cryptocurrency stocks were the hottest thing since sliced bread, it was expected that blockchain technology would be quickly adopted. For people outside of the complex and exciting world of cryptocurrency, Bitcoin can be hard to understand. The altcoin (defined as a cryptocurrency other than bitcoin) fell to as little as $62.65 late last month, down more than 55% from its price of $146.43 in June, CoinMarketCap figures show. He has advised domestic and foreign clients in the tax-efficient structuring of legal entities, effective tax rate planning, mergers and acquisitions, corporate reorganizations, treasury operations, financial instruments, international taxation, tax accounting under GAAP, state and local taxation, and sales and miscellaneous taxes. Why Bitcoin will fail. The Bitcoin price is down today as crypto markets react to fresh FTX fallout, and BTC bulls are unable to defend . These coins are much more suitable to be used as currencies because they only fluctuate as much, or as little, as their underlying assets. Oops! Download the Mint app and read premium stories. Michael Lewis, the author of Moneyball, was encouraged to talk to these Bitcoin revolutionaries in Silicon Valley, because it might make for good material for another book. Some hope that people will rise up and choose to go with Bitcoin instead of using traditional banks. Several analysts believe that the $20 transaction fee, which is higher than that of traditional payment systems . 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. Central Bank Digital Currency, or CBDC, has been a notion since at least the mid-to-early 2010s. It is not a currency, it is not a store of value, it is not an inflation . 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. 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. However, even though Bitcoin was the first to introduce blockchain to the world, its not necessary for blockchain to exist. 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). Bitcoin is what is known as a first-generation blockchain, meaning that it was the first of its kind. (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. Looks like you have exceeded the limit to bookmark the image. That plan, known as SegWit2x, was eventually called off, and it resulted in another sharp spike in the price of the original Bitcoin.[8]. "Both of those currencies have large and devoted followings and developers, whereas LTC hasnot much," claimedHendricks. But there is resistance to CBDC largely from incumbent commercial banks because narrow banks, which would be more easily enabled by CBDC, would largely upset their business model. In contrast, Ripples coin XRP settles 1,500 transactions every second, and they have the technology and infrastructure to make sure that theyll never slow down. They would strategically partially ll the blocks by including Blockchain can be used to reinvent supply-chain management and expedite overseas payments. Filler. why litecoin will fail >>CLICK HERE<< to change your financial future! Both of these coins, or cryptocurrencies, are already available on the market. 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. Dec 29 "Why Bitcoin is the largest Ponzi scheme in human history" - Linkedin | $14,617.28. Many have brushed it off for years, saying that it was a fad that would disappear as quickly as the value of Beanie Babies. As a currency, Bitcoin has little value if not converted into dollars, and the value of a single Bitcoin as represented by goods is essentially . Volatility. Though this lack of regulation is actually a selling point for today's crypto investors given that it provides some degree of anonymity, it's bad news if something ever goes wrong. This would be fatal to their monetary systems! The type of monetary policy and bail-outs we saw in the wake of the 2008 financial crisis could be implemented or simply avoided - by the Fed instead of the Fed having to work through commercial banking intermediaries. 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]. Litecoin prices, which have enjoyed a sustained rally over the last several months, have climbed more than 1,700% year-to-date (YTD). To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. Cryptocurrency can be the future . India has been hit by a wave of kidnappers demanding payment in Bitcoin. But the reasons why Bitcoin cannot succeed in the long run go so much deeper than that. University of Pittsburgh - Katz Graduate School of Business. 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 has a promising future as a store of value and a part of the world's monetary system. All it takes is time and coding knowledge for blockchain -- the digital and decentralized ledger that records transactions -- to be developed and a digital token to be tethered to the network. People becoming millionaires from this cryptocurrency spring up all around. I wrote this article myself, and it expresses my own opinions. Why Bitcoin Will Fail . I wrote this article myself, and it expresses my own opinions. WHY BITCOIN WILL FAIL: foreword by Craig S Wrong Why Is Annaly Capital Management's Dividend So High? Newcomers are dumping their money into Bitcoin, hoping that the price will only continue to grow. Checking with friends and colleagues, that seems to have been the case for most people in metropolitan areas. As a result, they o er near-zero transaction fees. Deflationary spiral is an economic argument that proposes that runaway deflation can eventually lead to the collapse of the currency given certain conditions and constraints. Bitcoin'svalue as a globalasset, like gold, depends on people trusting it as a form of moneyand businesses accepting it for payment. and why you should run like the dickens away from this much-hyped internet artifice. Once the trend fades away, we are left asking ourselves whether Bitcoin will actually manage to beat its competitors when the dust settles. 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. Since then, it has performed better. "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 . 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. A majority of crypto enthusiasts have always believed that Bitcoin is the only cryptocurrency that is truly worth investing in. A company called Coinbase has gone public, and Wall Street seems excited. 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. Big players have got involved in the craze and are actively manipulating the markets through high investment and high sell-off. TL;DR Breakdown. Hype and media attention are temporary, though. July 3 2022. why litecoin will fail3 bedroom house to rent shotton. There are already bigger, better, and faster versions of blockchain that made improvements on the original Bitcoin, like Ethereum and Ripple. Even considering the fact that fractional token ownership exists, roughly 10 million to 11 million tokens in circulation aren't going to go very far. It has demonstrated clear stability in the past 12 years, with price and network strength pushing forward year after year. Litecoin was designed to complement Bitcoin by solving issues like transaction timings and concentrated mining pools. 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. Cryptocurrency is here to stay, but Bitcoin and its clones will be obsolete, probably within this decade. Finscreener. Commodities have real value because industries purchase them as raw materials to use in the production of goods and services. But Bitcoin and its clones wont be part of it. Name *. Some people say that fiat money (which are the normal currencies that we all use today) also does not have real value since we moved out of the gold standard. why litecoin will fail. Here are the top reasons. Save my name, email, and website in this browser for the next time I comment. For one, there's the idea of scarcity. *FREE* shipping on qualifying offers. There is no control or central authority that oversees the transactions. Fiat money has the value of the guarantee of the government that issues it. Since . In case you cant find any email from our side, please check the spam folder. CEO of making fun of business and investing gurus online. Ask a skeptic, and they'll tell you it's a bubble that's about to pop. He will also address the recently skyrocketing price of bitco. If this has the remotest possibility of becoming true, it means that bitcoin is in competition with national currencies. 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. NEW YORK (March 21) Its troubling to see so many young investors buying into Bitcoin and its lesser-known clones. Posted: 4 Feb 2019 Last revised: 2 Oct 2022. Collins spent some 30 years building a career in executive and consulting financial roles, with a particular emphasis in business taxation. The speed of transferring Bitcoin across the blockchain does not keep up with modern banking standards. Photo by Andr Franois on Unsplash. Since then, litecoin prices have recovered, trading between $70 and $80 over the last few days,additional CoinMarketCap data reveals. Ethereum also plans to cap, and even reduce the available supply of coins, in addition to selling smart contract technology. Little did investors foresee the Catch-22 that would arise. The altcoin(defined as a cryptocurrency other than bitcoin) fell to as little as$62.65 late last month, down more than 55% from its price of $146.43 in June, CoinMarketCap figures show. In our view, Bitcoin is a bit like the Wild West of investing, back to the days before there was an SEC. You may have heard close to thousands of times now that Bitcoin will go down, burst, plummet to 0 or get outlawed by the government. Like that time Elon Musk made a tweet about Signal and a completely unrelated company with a similar name jumped 1100%. al. (Things obviously get more tricky when you're buying and selling in foreign currencies, and fraud in those transactions is as possible as it is with Bitcoin or any other commodity used as a means of payment. At the October 2017 SIBOS, SWIFT CEO Gottfried Leibbrandt said during an interview that their company is trying to come out with a technology that will improve security, anonymity, and speed. "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. Transaction Costs are Too High. I am not receiving compensation for it (other than from Seeking Alpha). -- Me on twitter. why litecoin will fail. Carnegie Mellon University - David A. Tepper School of Business. One can easily imagine a narrow bank eventually creating an affiliate to make commercial loans and returning a higher return to depositors who accept the higher risk beyond Federal Reserve deposits, or an entrepreneur amassing his own and other deposits and lending them to others to enhance their returns. The king of cryptocurrencies also has a utility problem. He decided not to write a book on the subject.[10]. There is a lot of excitement surrounding Bitcoin and cryptocurrencies, but we would like to sound a cautionary bell against investing in them. That is because you didnt buy bitcoin to use as a currency. al., are to criminal activity what water is to a wet sponge: it permeates all manner of criminal activity. 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. Updated: 28 May 2021, 07:46 AM IST Moh Hon Meng. I believe investors are also placing their faith in the wrong asset. For example, phone #: 123-333-4567. At the moment, the one and only digital currency that is actually working with the US Federal Reserve is a company called Ripple. why litecoin will fail bitcoin futures ethereum futures cardano futures litecoin futures binance futures. Unlike those investors, I dont slam the cryptocurrency asset class as something with no intrinsic value. You should not use this article for that purpose. You may opt-out by. Some bitcoin supporters have the vision of a future where currencies are fully democratized and not controlled by governments. Frank added that "LTC is also experiencing the largest drop in long-term sentiment among any of the largest coins.". It rose from $11,000 in September to $24,000 in December, passed $40,000 in January and hit $61,000 in Marchmore than three times its 2017 peak and 19 times its most recent low in 2019 . Moh Hon Meng | Published on 04 Jun 2021 Facebook Twitter LinkedIn Email Whatsapp Whatsapp. 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.