Litecoin Founder Charlie Lee recently warned people to stop fussing over the cryptocurrency performance. Throughout the year, Litecoin has rallied about 8,000% making it become the world’s fifth-largest cryptocurrency with projected market capitation of over $15 billion. Lee believes that Litecoin can grow to more than $300 billion by the end of next year.
According to Lee, the wild growth in the cryptocurrency prices may hinder its wider adoption as many people are viewing the digital currencies as a speculative asset rather than the real-world transaction. He added that the cryptocurrency industry is about five years away before the bitcoin and Litecoin can start being used as a real-world currency.
When Litecoin skyrocketed at the beginning of December, Lee took to his Twitter account to urge people to calm down and restrain from excitement over the high valuations of the coin. He commented that bitcoin is very volatile and Litecoin is even extremely volatile than bitcoin hence people should invest wisely and responsibly. He insisted that it’s not wise to invest all your life savings in any cryptocurrency just in case it drops 80% down the next day.
In addition, the significant increase in the growth of the cryptocurrencies is attracting scrutinizers from the government and other policymakers some of whom may work harder to bring down the whole industry. There is the ongoing consideration of the government getting involved in the regulation of the cryptocurrency industry and Lee thinks that increased regulation could help reduce the volatility and enhance the security of the digital currency.
Since South Korea and Japan got involved into the cryptocurrency space there has been a lot of development in the sector and even though China recently banned the bitcoin exchanges, there is a potential for the growth of the coin currency in the near future. An industry such as the cryptocurrency should be regulated since it involves a wide range of business transactions and interconnection of many people across the globe.