If you listen to eToro, you would have heard the exchange say in a recent report that Litecoin represents something of a bargain at its current price. The market might be in the midst of a slump, but that doesn’t mean that investors are taking their money off the table. As always, Litecoin creator Charlie Lee is also backing the thought that this current market drop is by no means the doomsday that some would have you believe. Dismissing the recent price trends, Lee has claimed that it’s nothing more than the upshot of “speculation,” with the long-term valuation of Bitcoin, Litecoin, and other cryptos being the true measure of success.
No Need to Panic
Lee’s recent comments came about during an interview with CNBC – the popular business news TV network. During this interview, he discussed the metrics of the cryptocurrency market, along with what’s the most meaningful metric given the current condition of any crypto’s network, viability, and general adoption. Lee said, “In the long-term, [price] tells us the success of cryptocurrencies, but short-term it doesn’t really tell us much. For example, this year there’s been so much adoption in Bitcoin and Litecoin, but their price has dropped 60% to 70% percent. It’s because it’s so volatile, it’s all about speculation these days, but in the future the price will reflect the success of the currencies.”
Let’s Talk About Development
Considering that the cryptocurrency market is in the grips of a bear trend right now, Lee feels that it’s hard to predict when it will turn the corner. He discussed prior times in which the cryptocurrency market has entered choppy waters, pointing to the fact that a positive momentum shift could take anywhere between six months and three years. Yet, Lee was in no mood to dismiss the bear market and what it means for the all-round growth of the cryptocurrency market. In his mind, bear trends are actually a positive moment for the crypto sphere, as it allows developers to refocus on reach, adoption, scalability, and tech development. “I’d like to see more [talk around] Lightning Network and sidechains, ways of helping Bitcoin and Litecoin to scale. I think with the price depressed, it’s actually a good time for people to get stuff done. That’s what I’ve seen in the past few bear markets actually,” he said.
Taking the First Step
Moving the interview in a slightly more controversial direction, reporter Melissa Lee wasn’t afraid to question Charlie Lee on his call to sell off a portion of his own LTC holding. Lee explained that the decision was made out of a “conflict of interest,” he also made it clear that he won’t be buying it back – at least not anytime soon anyway.
Back in February, Lee gave another interview where he explained that the decision to sell was his “first step” in moving away from the project. For Litecoin to be decentralized, he believes that he needs to release some his own LTC to ensure that such ambition is matched. Many would say that this approach is akin to that of Satoshi Nakamoto – Bitcoin’s mysterious and totally absent creator.
Lee is Worth Listening to
Much like after the recent Bithumb hack, when you analyze Charlie Lee’s recent comments, it’s clear that he’s being honest and upfront with his opinion on the market state. While it’s not a pretty picture at the moment, cryptocurrencies in general are by no means at death’s door. The signs of positivity are there – even if they are hard to spot – as this current bear trend could be the making of a stronger, superior, and more secure cryptocurrency market over the long term.
