Investing in Litecoin and other cryptocurrencies have been noted to be extremely risky. This is a stern warning to investors putting their funds in digital currency by Mr Charlie Lee.
Mr Lee is the creator of Litecoin, the fifth-largest digital coin by market cap in the world. More so, the bomb sheer was dropped as the value of his digital coin increased by more than double between December 10-12, 2017. Litecoin peak to over $300 by Tuesday, December 12 – a value which is 110% above its weekend price.
Instead of celebrating the rise in price, Lee took his time to educate investors about the potential risks in the coin.
“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),” Lee said.
“So if you can’t handle LTC dropping to $20, don’t buy!”
Also Read: 5 reasons you should not invest in bitcoins or any cryptocurrencies
Lee also stated that the current peak in price of digital currencies is a bubble, and its burst would result in huge losses to many people.
Bitcoin, Litecoin and other cryptocurrencies are digital currencies developed through the use of blockchain technology. Bitcoin was the first digital currency to be mined in 2009 by Satoshi Nakamoto, and the goal is to create a currency independent of central authority and transferable electronically.
Since the beginning of the year, Litecoin has peaked up 5953%.