Charlie Lee from Litecoin warns crypto trader, halving is already in price

Charlie Lee is the big man behind Litecoin. He thinks traders and investors should be prepared to be able to lose a lot, even with the prospect of halving.

In an interview with Crypto Love, Lee discusses the warning he gave to investors at the end of 2017. The value then rose very quickly.

“Crypto is really risky. During bearmarkets I have seen crashes of 90 percent. So when litecoin was $ 200, I said it could drop to $ 20. Anyone who bought for $ 200 or more, and sold for $ 20, loses 90 percent of his portfolio. So my point at the time was that if you can’t handle a 90 percent decrease, then you shouldn’t buy, because it’s too risky for you. “

Litecoin fell to nearly $ 20 in December 2018. At the moment litecoin is worth around $ 120 again. Lee says in the interview that he thinks that, hopefully, Litecoin has already reached the lowest point.

Impact of halving

During the interview, they also discuss the likely impact of the upcoming Litecoin halving, which is already taking place next month.

“A halving is always a kind of shock for the system. When the reward for mining is cut in half, some miners will no longer be profitable and will stop. If a large number of miners do that, blocks will become slower for some time. With litecoin it takes three and a half days for the difficulty to adapt to the available computer power, so there may be seven days slower blocks. After that the difficulty level is adjusted again and everything will be fine. “

“The value of litecoin now appears to be priced in at the halving. Everyone is aware of it from the start. But it’s also about people expecting the price to go up. So many people buy in because they expect the price to go up and that is a kind of self-fulfilling prophecy. So because they buy, the price even goes up. ”