The creator of Litecoin, Charlie Lee was interviewed recently by CNBC and he answered some interesting questions. A former computer scientist and engineer at Google and Coinbase, Charlie Lee gave his opinion on many subjects, like the current cryptocurrency prices. It’s a fact that the first 3 Quarters of this year has been a bears market and he was asked what do cryptocurrency prices mean right now. Charlie Lee said that it’s hard to say because of the volatility of the cryptocurrency market. It may take a couple of years to reach the past highs, as reaching them this year seem unlikely. Cryptocurrencies look like a great investment right now, but he warned against buying them with loans, borrowed funds or money you can’t afford to lose.
Charlie Lee: It can take from 3 months to 3-4 years to reach the previous highs
For long term hold and for bear markets, Bitcoin is your choice, according to Charlie Lee. During the bear cycle, Bitcoin was probably the strongest cryptocurrency, making it a great hedge against bear markets. The Bitcoin price of most cryptocurrencies has decreased, meaning that you could buy more of that cryptocurrency with Bitcoin and increasing Bitcoin’s purchasing power. He also commented his recent selling of all Litecoin that he had. He said that it was because of conflicting interests and he doesn’t think to buy them back. About cryptocurrency prices, he added that speculation drives prices:
“It is all about speculating these days. Speculation drives prices, but in the future, the price will reflect the success and progress of cryptocurrencies.
The Litecoin summit is coming up in 14-15 September, and when asked what the takeaways will be from it, Charlie Lee answered:
“I like people to focus on technology, on adoption and also how to scale. So things like Lightning Network and side chains, helping Bitcoin and Litecoin scale. I want to see more talk around that and I think with the prices currently down, it’s actually a good time for people to actually sit down, get their head in and start getting stuff done.”
Bitcoin is definitely the store of value for the cryptocurrency ecosystem and is taking the role of digital gold. Like Gold, during bear markets or recessions, people fold to the real store of value, or Bitcoin in the Cryptocurrency market.
So when the bull markets return, diversify your investments for maximum profit, but when the markets enter bear cycles, hedge in Bitcoin.