Cryptocurrency Dabbling: Panics, Gold Rushes and Surviving

in #litecoin6 years ago

Horror

It's Valentine's Day, and Cryptocurrency markets are twitching like they've an intention of recovering for the first time in a longtime, but it feels to me that nothing can be written about any of the aforementioned warm fuzzies without first acknowledging that today has been a grotesque day in America, and that we've very little reason to hope that American citizens and children won't continue to be butchered in increasing numbers with increasing frequency for the foreseeable future. We all ought to be sick, and our political leaders sickest for their reprehensible and callous inaction.

Okay, But How Do You Feel About Crypto Markets, Juan?

So today, Litecoin, that little engine that couldn't, source of endless regrets in the past three months, perked up its ears and went charging up a slope of value, gaining over 30% in less than twenty-four hours.

So this is good news, right?

Hard to say. The wild rally comes on the back of news of an upcoming fork in the Litecoin blockchain that will result in the creation of a new currency called Litecoin Cash, with owners of Litecoin (at block 1,371,111) receiving tokens of Litecoin cash at 10 to 1.

This has excited all kinds of people (well, mostly one kind: Litecoin owners), who've been driving up the value of the currency in hopes of getting some free value from bonus tokens at the fork.

I'm pleased that something is driving the markets up, but unlike mobs of panicky men scrolling through Yelp in a lather of perspiration roundabout the dinner bell this Valentine's Day, I've got reservations.

Here are the three reasons I've got reservations, and you (if you own Litecoin or are thinking of buying) should also have some R's dialed up:

1. The founder of Litecoin says he thinks Litecoin Cash is a scam.
I mean, the guy did completely divest of Litecoin last fall, so his credibility is neck-in-neck with the Weekly World News, but on the other hand, it's something to be aware of.

2. Anytime people fling money around in hopes that they'll get free money, it's worth being suspicious.
People flinging money at the prospect of cheap, quick profits is a phenomenon with a name. And the name is "bubble."

3. Litecoin's long-term outlook is pretty bleak.
Given Litecoin's struggles, there's not much reason to be optimistic about either Litecoin or Litecoin Cash, without finding out more about potential improvements in Litecoin technology that accompany the fork. If the currency isn't continuing to become more usable there's not much reason to hope in either LTC or LCC. Near the end of last year, Litecoin looked poised to be one of the big, enduring cryptocurrencies. As of February 14th, it's looking a lot less like it.

So What Am I Going to Do? And What Should You Do?

Here's what you should do: not listen to me.

Okay. Now, if you're still listening, it's your own fault, and I can't be blamed. My advice? If you don't own Litecoin already, stay away. The risk/benefit factor doesn't justify the purchase at all.

If you already own Litecoin? Well, here's my plan:
I'm going to hold for now, but if the bubble starts expanding past my original purchase price, I might lift bits off the top and put them in a cryptocurrency I trust a little more. Because my original experiment plan more-or-less requires me to leave at least 50 USD in for a year, I'll leave at least that much in Litecoin and see what happens.

As in all things, it's important to leave yourself open to a bright future, but protected from a dark one. Once more, then, my advice to you is this: don't listen to me. But if you decide to listen to me, sell yourself a little bit of insurance.

Where We Stand

  • BTC: $29.18
  • ETH: $49.92
  • LTC: $35.22
  • EAV: $230.57
  • ADA: $4.51
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I got lucky and bought some Litecoin a couple weeks ago when it was barely above $100, so this increase is looking pretty good haha! But yeah, not really sold on its longevity.

Nice move. Yeah, a week ago was a pretty great time to buy. I accidentally started this project at the end of a bubble, and it’s hard to see how I’ll make any money off of it by the end of the year.

Haha yeah, that was an unfortunate time to get into it! Hopefully business keeps booming though and you'll be in the green before long!

Thanks for the update. I was not aware of the fork ; although I did notice litecoin busting upwards.

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