Cryptocurrency market is doing good in the past two days. There is no denying that this is a much-needed respite to the crypto market especially after the US Securities and Exchange Commission rejected a number of Bitcoin ETF applications.
However, Bitcoin was able to cross $7,000 yesterday. And today, it was able to cross $7,100. However, if you are going to ask Charlie Lee, he dismissed the short-term price trend saying that it is merely speculation of the market. He stressed that long-term valuation is a true measure of whether or not a digital currency is successful or not.
He mentioned that: “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 60-70 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.”
Hard to Predict When The Bear Market is Going to End
One of the things that he also discussed recently is when the bear market is going to end. There are a lot of predictions today regarding the crypto market. For instance, you have Brian Kelly and Tom Lee who are quite optimistic regarding the possibility of Bitcoin in the remaining months of the year. Tom Lee believes that there is a possibility that Bitcoin is still going to reach $20,000 before the year ends.
As for Charlie Lee, he is quite realistic about his call regarding the crypto market. He believes that the bear market is here to stay for quite some time. He mentioned that given his experience in the crypto market, positive momentum returns within half a year or even three to four years.
However, he believes that bear markets can be a good time for developers to make necessary technological development. Here, he believes that it is a chance to increase adoption and even tackle challenges such as scalability. He said that: “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”.
Selling All His Litecoin
Many question the intention of Litecoin founder Charlie Lee when he sold his Litecoin. He also mentioned that given the chance, he won’t be buying back the shares. Given the timing of his decision to sell all his Litecoin, many are worried that it was actually a scam. Lee was able to sell the litecoins when it was in its highest.
However, if you are going to ask him, he wants to make sure that Litecoin will be fully decentralized. By selling his shares, he eliminates the conflict of interest and he is basically following the example led by the anonymous Satoshi Nakamoto.
There are positive things about Litecoin recently. For instance, you have the Coinbase endorsement enlisting Litecoin in the platform. This means that it gains access to more than 100,000 new users that engage within Coinbase on a daily basis.