by Nathan McDonald, Sprott Money:
Last week, I penned an article about the history of Bitcoin and how the community around it has dramatically changed. This isn’t just Bitcoin, however; it is all Cryptos. In the beginning, as I discussed last week, the Bitcoin community was all about helping each other grow and prosper. It had its own micro-economies, and because of this, it boomed.
Fast-forward to today, and the landscape is nothing like it once was. “Getting rich quick” topics are all the rage on Bitcointalk, and small businesses can no longer even use Bitcoin as a form of payment, due to skyrocketing fees.
As I mentioned, this has led to a large number of original veterans of the Crypto space leaving altogether, as the vision they once saw is long dead. Little did I know a mere week ago just how over-the-mark I was in this assessment.
The trend appears to be continuing and is now moving to high profile names within the Crypto space. Two in particular have now cashed out of their cryptocurrency positions almost entirely.
The first is Charlie Lee, the founder of Litecoin, often referred to as “Bitcoin’s silver.” As it is closely linked to the success of Bitcoin, Litecoin has skyrocketed in value over the course of the year.
In fact, this time last year, it was trading at a mere $3.67 USD per Litecoin. Today it sits at roughly $320 USD per Litecoin, a phenomenal gain of well over 9000% in less than one year!
You cannot blame Charlie Lee for cashing out, but what is shocking is the fact that Lee has been one of the biggest promoters and pushers of Litecoin in the past. Still, there are those stating the price can never go down. A warning sign noticed by any contrarian investor.
Charlie Lee, of course, had an explanation that had nothing to do with the parabolic rise of Litecoin, stating that he suddenly now believes his ownership to be a “conflict of interest.” You can read his full reddit post here.
The second prominent figure to cash out of the cryptocurrency markets is the founder of the originalBitcoin.com website.
Emil Oldenburg, of Sweden, has been a massive supporter of Bitcoin, and it comes as a shock to many to learn that he now dismisses it as a valid form of money. He even went so far as to state that Bitcoin is currently “the most risky investment a person can make.
During his interview with Breakit, Oldenburg goes on to explain why he sold out of his Bitcoin position. His reasoning will come as a surprise to many, but not myself, as it is exactly what I have been talking about in this article and preceding ones:
“It’s a group of fanatic bitcoin talibans who themselves do not use bitcoin everyday to want it like this. They see bitcoin like digital gold and a technical experiment, not something you should actually use. It will never be a currency used in everyday life or for people who run companies.”
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