Litecoin Founder, Charlie Lee was on a telephonic interview with CNBC, earlier today. The techie posted a tweet carrying his interview, where he shares views on market risks, security, and crypto-prices in general.
Starting with his take on the price action of cryptocurrencies affected by the hacking of an exchange; Lee explains that the people get scared whenever an exchange is hacked, therefore the prices drop. Adding to it, he draws banks as an alternative to exchanges and says:
“It’s like if a bank gets broken in and gold gets stolen, does this affect the price of gold? It shouldn’t. Same with Bitcoin. If the exchange doesn’t protect their coin well enough and gets hacked, it doesn’t really change the fundamentals of the coin that they’re protecting.”
Lee also admits that exchanges are working on better ways to protect customer funds as they are still at an early stage in the crypto-time frame. For personal finances, it is a shift in paradigm. Since, each one trading in cryptocurrencies has control over their own finances and are responsible for the same, storing money in an exchange demands one’s trust in the exchange, to hoard and protect that money.
When asked about the one thing that excited Lee the most in this ecosystem, in an instant he replied with ‘Lightning Network’.
“What I’m most excited about is Lightning Network. Technically, Bitcoin has gotten stronger and stronger over the past few year. SegWit has activated, developers are working hard on getting Lightning Network which is the second layer solution for payments working on Bitcoin and Litecoin.”
He also speaks about the drop in prices over the past one year. In Lee’s opinion, the prices have detached themselves with the actual development of cryptocurrencies. He also says:
“I have faith that prices will rebound and come back up fairly soon”
Lee has been in the crypto-space for about 7-8 years now and claims that the market is highly unpredictable. In his time, he has seen the market remain bearish for several years. Therefore, it is hard to comment on the future of the crypto-market.