Litecoin (LTC) overvalued? Charlie Lee defends himself

Litecoin (LTC) overvalued? Charlie Lee defends himselfLee sees this as part of a concerted action by hedge funds that bet on falling LTC prices. On Twitter, Lee has now tried to refute the arguments of LTC critics.

Is there a conspiracy going on against Bitcoin secret?

Charlie Lee faces massive criticism for his Bitcoin secret invention. He suspects behind it an agreed attempt to manipulate the share price. The alleged culprits are individuals and funds who either sell LTC short-selling or perceive the litecoin as a threat. In an 11-part tweet on Twitter, Lee dealt with the argumentation of the other side. Here is the review about the Bitcoin secret.

The structure of Lee’s tweets suggests that they respond to a particular article: a contribution from Crypto-Hedge-Fund Multicoin. In the article entitled “Debunking Market Narratives: Litecoin Edition” the writing manager Tushar Jain does not leave good hair on Litecoin.

Criticism: Litecoin profiteer of false cryptosoft

Jain considers the litecoin to be a “relic” from pre-Smart-Contract times, whose age is often misunderstood as a sign of value. LTC benefits from various narratives that give cryptosoft supporters a misguided view of the reality (of the market). Jain makes four main narratives, which are unjustly attributed to

1. litecoin as medium of exchange
The first myth that Jain wants to expose is that of the functionality of Litecoin as a medium of exchange (MoE). It is a widespread opinion that Litecoin is better suited as a medium of exchange than the parent currency Bitcoin due to low transaction fees and higher transaction speeds; not least because traders prefer LTC because of these advantages.

Jain argues that Litecoin does not have a unique selling proposition. There is strong competition in the MoE sector, notably from the Lightning-Network and Bitcoin Cash. The entire Ethereum ecosystem should also be regarded as competition from the MoE point of view. In addition, Bitcoin’s transaction fees have fallen sharply.

Jain wants to refute the argument that merchants prefer Litecoin to other crypto currencies: When merchants accept crypto currencies, they are not arguing for or against a particular coin. Rather, they use the services of payment service providers who generally accept different coins.

2. litecoin as a store of value
“If Bitcoin is gold, then Litecoin is silver”: This is another misjudgment of the LTC community. The intention is to express that Litecoin has an inherent function as a store of value.

Jain considers the comparison of crypto currencies with precious metals to be problematic. Thus there are concrete applications for silver in the industry, which Litecoin cannot claim of itself. Furthermore, LTC does not differ sufficiently from its competitors, which will “erode” the Litecoin brand in the long run.

3 Litecoin as Bitcoins Testnet
In the eyes of its followers, the LTC network should also have a right to exist as an experimental laboratory for Bitcoin. Updates such as SegWit or the Lightning Network are usually implemented faster than in the BTC network.

Jain also puts this argument into perspective. It is “nonsensical” for Bitcoin to maintain a $3 billion (market capitalization of LTC) expensive test network. The assumption that BTC-Hodlers would voluntarily exchange BTC for LTC to support the test network is “ridiculous”. In addition, Jain doubts LTC’s innovative strength. Not even from the corner of the Litecoin cops can he be told that the LTC will at some point take a new, independent path. The Testnet argument is therefore not an investment case, but is based on a false narrative, which presumably can be traced back to the lack of Bitcoin alternatives.