Charlie, the founder of Litecoin has always had strong opinions about the digital assets industry. His recent remarks about Bitcoin was during the World Crypto Conference. Hsaid that he and most people don’t talk about the variables that make a cryptocurrency valuable. He made reference to the era of trade by batter then progressed into other concepts like gold and fiat money. He said that gold is valuable because it is a physical property and it is scarce. While gold is beautiful, the beauty isn’t what gives it its value according to Lee.
Moving on to Bitcoin, Lee said that there isn’t a physical representation of Bitcoin and so it can’t be owned. Because it is a digital asset on the blockchain, it can only be accessed through a private key and can be sent from one address to the other. He said that this doesn’t apply to only Bitcoin and Litecoin but to every cryptocurrency as well. In his words:
“It is actually the word money property that makes Bitcoin valuable. This is why it is referred to as the gold of the digital world”.
Lee explained that there are four basic properties that make Bitcoin valuable. Citing fiat currencies that are owned and controlled by the government, he said that the decentralized nature of Bitcoin is another key factor that gave it value. While governments control the movement of fiat currencies, they have no power over Bitcoin.
According to Lee, Bitcoin transactions are immutable because of the blockchain making it valuable. Transactions on the Bitcoin Blockchain can neither be reversed or modified. This gives Bitcoin an edge over fiat currencies that can be rescinded by the government. In his words:
“Competitive mining and proof-of-work are what lead to the production of Bitcoins. So, the cryptocurrency isn’t zero because you use money to mine it. If money wasn’t required, counterfeiting would be easy and this would reduce the value as it has as with fiat currencies. Fiat currency have lost a lot of value over time. Federal Reserves devalue these currencies when they like. While this is seen as quantitative easing, it is nothing but printing money and devaluing what everyone has”.
Lee stated that this kind of devaluation can’t happen with Bitcoin because codes, and not central authorities, are what determine inflation with Bitcoin. He continued:
“Everyone already knows that the production of Bitcoins will end when it reaches 21 million Bitcoins. It can’t ever go more than that except it is changed with consensus. Everyone has to agree that they want it to exceed that number before it does”.
Bitcoin (BTC) Price Analysis
As the new week begins, Bitcoin is surging above the resistance at $6,350 and $6.375. The leading cryptocurrency per market capitalization moved above $6,475 before it started trading lower. This was after it fell below the $6,200 support territory. The hourly MACD was moving towards the bearish zone while the relative strength index was above the 50 level. At the time of writing, Bitcoin (BTC) was trading at $6,436.71. This shows that it was up by 1.04% against the USD. The 24 hour trading volume was up at $4,262,327,640 and the total market capitalization was $111,744,990,036.