Why Isn't Charlie Lee A Trader???

The founder of Litecoin, Charlie Lee is one of the greatest crypto traders out there. I mean he sold all his Litecoin at the top of the 2017 crypto bubble. If that’s not timing, I don’t know what is timing. Charlie Lee said he was accused of talking about the price of the Litecoin on Twitter for “personal benefit,” so he sold his holdings to eliminate any conflict of interests. Great excuse, but when prices rose over 7000%, I think Charlie knew that Litecoin was overinflated when he sold.

Litecoin once had a great run earlier this year as it was once up over 300% and the best performing cryptocurrency. But I think the run up was due partially due to the halving event in August. The halving event decreased the mining rewards of Litecoin from 25 to 12.5 coins. In theory it should of made the coins higher in value, but it didn’t. To add insult to injury Hashrate on the Litecoin network has dropped nearly 70% as it’s making mining for Litecoin less profitable, so miners are going elsewhere. But guess what Charlie Lee predicted this as well.

According to Lee, the halving has historically been a “shock to the system” for Litecoin and its miners, as they sort out the new landscape of block rewards. Some miners will be forced to close their enterprise, leading to a short-term disruption in the LTC network.

Lee explained,

“When the mining rewards get cut in half, some miners will not be profitable and they will shut off their machine. If a big percentage does that, then blocks will slow down for some time. For litecoin it’s three and a half days before the next change, so possibly like seven days of slower blocks, and then after that, the difficulty will readjust and everything will be fine.”

Source

NOTE: as I just learned the lower the hashrate is, the more vulnerable a blockchain is susceptible to attacks.

So why isn’t Charlie Lee a trader…quite simply he is a hell of a developer and visionary. Recently the Litecoin Foundation took a step to make the blockchain make transactions that are private by funding the efforts of David Burkett, Grin ++ developer who is working to design a Mimblewimble extension block to Litecoin.

Mimblewimble is a spin on Confidential Transactions where the value sent over the network is obfuscated yet verifiable as the inputs and outputs retain addition as a property. In the past, Charlie Lee has expressed his interest and hesitation with MimbleWimble but had hoped that the community would adopt the change if it proved to be a worthwhile upgrade to the network. This will put Litecoin in a special class of blockchains, blockchains that offer privacy. This option is a competitive advantage in itself and over time, the Litecoin network should see an uptick in demand.

So where is price heading next, well price is currently sitting in weekly demand at $46,

but in order to my higher, say to the immediate daily supply at $56, price must close above the $50 level on the daily chart.

This post is my personal opinion. I’m not a financial advisor, this isn't financial advise. Do your own research before making investment decisions.