Charlie Lee: 'Volatility and bad user experience' is holding back crypto

25 Mar, 2019
by Joeri Cant
Adoption
Charlie Lee: 'Volatility and bad user experience' is holding back crypto

The founder of Litecoin, Charlie Lee, believes that volatility and bad user experience are the two things that are holding back cryptocurrency adoption.

The Litecoin creator and crypto pioneer, had a sit down with NewsBTC at Token2049, where he shared his thoughts on what is holding back cryptocurrency adoption today.

When Charlie Lee was asked what is one thing holding back crypto adoption as it stands, he replied by saying that there are actually two things holding back crypto adoption.

'I’ll tell you two things', Lee said.

'One thing is volatility. Because crypto prices are so volatile, it’s hard for people to actually use it, meaning adoption is hampered. Volatility is kind of a chicken and the egg type scenario. Once there is adoption, volatility will decrease, meaning more adoption. So it’s a slow process for that to work for us to overcome that.'

'The second thing that’s kind of preventing us from getting a lot of adoption is user experience of storing your own money.'

Read more: Charlie Lee: Bitcoin will hit $20k within the next 3 years

Lee explained that securing your own money is a difficult thing to do, as there are always certain tradeoffs between security and usability.

'People are using exchanges to store their coins because they can’t do it themselves. It’s easy, but then you hear all the stories about exchanges getting hacked. And that really hurts adoption.'

The Litecoin founder adds that more work needs to be done on having better, easier solutions that allow people to store their own money.

'That’s the whole problem really', Lee states. 'I think usability and user experience is really important, albeit it’s something that is hard to solve.'

Read more: Why did Charlie Lee sell all of his Litecoin?

In a related matter, Chepicap previously reported that Billy Bambroug, a Forbes contributor, seems to believe that the 4th largest cryptocurrency, Litecoin, might jump XRP and take 3rd place before the end of 2019.

Bambrough pointed to LTC’s halving, which is set to occur in about 4 months time, which will reduce the block reward for miners and thereby increase the scarcity of the coin.

Halvings typically generate a higher price valuation, given the supply change, however, it remains to be seen if it will have any long-term effect on Litecoin's price during this prolonged crypto winter.

Charlie Lee added that the one thing that feels different about this bear market, even though it’s been over a year now, is that it hasn’t been as bad for people.

'The drop is similar percentage-wise. But during the last bear market, I remember it got to a point where people just didn’t think that it was going to come back. People just weren’t optimistic about the price at the time. Now, I think we haven’t gotten to that point yet, and maybe we might not go there this time, which will be great.'

Read more: Litecoin might jump XRP by the end of 2019

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