Litecoin founder Charlie Lee warns investors to invest responsibly in the cryptocurrency saying that people must stop fussing over the rally in Litecoin.
Litecoin inclined more than 150 percent last week and reached a new milestone of $300. The cryptocurrency rallied 8,000 percent this year, becoming the fifth largest cryptocurrency, with more than $15 billion market cap. Currently, LTC trades at $262 on Coinbase.
“I would be happy if litecoin stays at around $300 by the end of next year,” said lee in an interview with CNBC.
“It’s still very surprising how much it has grown this year”
Lee said that the crazy growth in cryptocurrency prices is constraining their adoption as they are mostly being used as speculative assets rather than a currency for real-time transactions.
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) 11 December 2017
“I think we’re still maybe five years away before people actually start using bitcoin and litecoin in real world use as a currency,” he said.
Earlier this month, when Litecoin value surged more than double, Lee, using the Twitter platform urged for calm and “rein in the excitement” over its high valuation.
“Bitcoin is very volatile, and litecoin is even more volatile that bitcoin”
“I just want to warn people that they should invest responsibility. Don’t spend all of your life savings to buy a cryptocurrency in case it drops 80 percent,” added Lee.
Due to its unstable prices and increasing popularity, cryptocurrencies have attracted a lot of inspection from policymakers. Some doubt their position as mediums of exchange while some accuse them of being nothing else than an ‘asset of speculation’.
Lee, unlike other cryptocurrency purists – who fear the idea of government intervention – believes that cryptocurrency regulations might be helpful to reduce the drastic fluctuations.
“I think increased regulation will help to reduce the volatility of the coin. A lot of the recent gains have had a lot to do with countries like (South) Korea and Japan really getting into the cryptocurrency space,” said Lee.
“Ever since China banned the bitcoin exchanges (South) Korea has really taken up the mantle. There is a lot of Frenzy in (South) Korea right now and I think that’s driving up the price.”
He said that he would not really like to see South Korea banning cryptocurrencies too however, he did prefer more regulation around ICOs as according to him, “those are very risky for newcomers”.
Talking about the launch of CBOE bitcoin futures and the introduction of CME bitcoin futures, Lee said that he is expecting to see litecoin futures in the global exchange market in the near future.
“I believe that as we grow, more and more people will look into litecoin and see that as a good investment asset also. I hope to see litecoin futures one day.”