Litecoin News Update
As if the rumors of a South Korean ban weren’t enough, cryptocurrencies face a double whammy after the Chinese government chimed in with the Korean authorities.
It’s somewhat ironic that cryptocurrencies, which threatened to weaken government control over our monetary affairs, are now at the mercy of the same governments.
I’ve finally mustered up some courage to say the following three dreaded words: cryptocurrencies are crashing! Yes, it’s happening and we have governments to blame.
Cryptocurrency zealots—those who subscribe to Satoshi Nakamoto’s vision of a free world—currently face the biggest reality check. Can they break past this resistance being set up in their way?
Here’s what has been happening. After the South Korean government backpedaled on their ban plan last week, cryptocurrency prices began a reversal over the weekend. But, on Monday morning, the South Korean government backtracked on their word again!
This time they sent out a reminder to the markets that “cryptocurrency is not a legally recognized currency”—an implicit threat that caused another plunge in prices.
Now, a petition signed by 200,000 South Koreans has landed in the presidential office, urging officials to not put a complete ban on crypto trading. The government will be reviewing the issue and, chances are, there may not end up being a complete ban, but only regulations. (Source: “Uproar as South Korea Plans Cryptocurrency Crackdown,” The Wall Street Journal, January 15, 2017.)
Nonetheless, the damage has been done.
To make matters worse, the Chinese government also dropped a bombshell the same day. The Vice Governor of People’s Bank of China, Pan Gongsheng, is calling for a ban on everything cryptocurrency. Not only does he propose to halt the cryptocurrency exchanges, he wants to shut down online wallets and crack down on individuals trading cryptos.
“Pseudo-financial innovations that have no relationship with the real economy should not be supported.”
Those are his words. It’s understandable why he’s sour. His job is may be on the line. After all, cryptocurrencies threaten to render central banks useless. (Source: “PBOC official says China’s centralized virtual currency trade needs to end: source,” Reuters, January 16, 2018.)
Regardless of these governments’ ultimate motives, the fact is that a ban would not change the fundamentals underlying these cryptocurrencies.
For instance, Litecoin will continue to expand its ecosystem of users and, ultimately, investors, even if South Korea and China are taken out of the picture.
Here are at least three reasons why I believe so.
First, Litecoin is gradually gaining traction in the cryptocommunity, where people are now beginning to use it for buying everything from cakes to cars. A good place to read about these stories is in the Litecoin subreddit.
Second, the founders are currently working on an upgrade that would take it 10 steps further ahead in the game. Litecoin is vying to substitute Bitcoin. It sounds too ambitious right now, but it’s absolutely possible, since it’s both cheaper and faster to use—with the upgrade intended to further cut the fees and reduce the block sizes.
Third, Litecoin’s “PayPal”-style payments processing service is coming out next month, which would make it a whole lot easier for businesses to adopt it for payments. People would be able to hold “Visa”-compatible Litecoin cards, which would be easily swipeable at stores and ATMs.
Now ask yourself: “Is the current cryptocurrency crash a curse or a blessing in disguise?” As far as I see it, it may be an opportunity for the foresighted to secure a seat on the rocket while the tickets are still cheap.
When the dust settles and sanity begins to prevail, cryptocurrency buyers will re-enter the market because—ban or no ban—Litecoin’s promising fundamentals cannot be ignored.
We’re heartily maintaining our $400.00 target in our Litecoin price prediction for 2018.