Charlie Lee States the Obvious: Cryptocurrencies Crashed After a Bubble in 2017
Charlie Lee, Litecoin (LTC) founder and Bitcoin and crypto supporter talked about the bear market that affected the whole cryptocurrency market this year. During an interview with Crypto Insider, he said that Bitcoin had several bubbles in history and that this is the standard in the market.
Litecoin is one of the largest virtual currencies in the market. At the end of the last year, Litecoin was traded close to $370 and in some exchanges, it reached $420. However, a few months latest, it crashed down to $23, losing around 94% of its value during the year and reaching new lows in 2018.
Back at that time, when Litecoin was going to reach its all-time high, Charlie Lee wrote a tweet in which he explained that the cryptocurrency market could abruptly drop. He said that LTC is extremely risky and it is possible to have a multi-year bear market.
“So if you can’t handle LTC dropping to $20, don’t buy!”
Ok, sorry to spoil the party, but I need to reign in the excitement a bit…
Buying LTC is extremely risky. I expect us to have a multi-year bear market like the one we just had where LTC dropped 90% in value ($48 to $4). So if you can't handle LTC dropping to $20, don't buy! 😀
— Charlie Lee [LTC⚡] (@SatoshiLite) December 11, 2017
He said that he experienced several bubbles in his life, starting from the DotCom bubble and Bitcoin’s price increases in the past. He received lots of critics for selling his LTC when the market was growing, but he explained that crypto prices moved higher than their actual prices.
On the mater, he commented:
“I said in my tweet, that the price of Litecoin has previously dropped 90% from its high, so this is how volatile the market is and at the time of the tweet, Litecoin had just hit two hundred dollars. So I said if you can’t withstand it dropping back down to $20, which is 90% drop, then don’t get it.”
He has also talked during the interview about the flappening between Litecoin and Bitcoin Cash (BCH). A few weeks ago, Litecoin surpassed Bitcoin Cash in the market when LTC price grew but Bitcoin Cash fell sharply. However, this flappening did not last long since Bitcoin Cash went up more than 100% in just a few days.
On the mater, he said that in the long term Bitcoin Cash’s value is less than the long-term value of Litecoin. For Charlie Lee, Bitcoin Cash is not sound money and Bitcoin and Litecoin work side by side.
About the future price of virtual currencies, he said that the predictions made by several analysts were influenced by several bulls in the space. Everyone was bullish about Bitcoin and virtual currencies. He went on explaining that people and investors did not suppose that Bitcoin could reach $20,000, but it did. When it reached that price, people were thinking that it could keep growing and reach even new highs such as $200,000. Nevertheless, once Bitcoin touched $20,000 it dropped down to $3,250, or even more in some exchanges.
Charlie Lee talked about Schnorr signatures and how they will be implemented in Bitcoin and Litecoin very soon. He explained that Schnorr signatures and scribblers scripts will be implemented in these blockchains because SegWit allowed for it. Those implementations and upgrades can be simply added with a soft fork.
With Schnorr Signature, experts believe that it will be possible to reduce storage and bandwidth by around 25%. That means that Bitcoin and Litecoin will have a much more efficient network without having to perform hard forks to upgrade other issues.
At the moment of writing this article, Litecoin is the 8th largest virtual currency in the market. It has a market capitalization of $1.81 billion. Each LTC can now be purchased for around $30, which means that the virtual currency experienced a 92% drop from its all-time high.