Charlie Lee aka Satoshi Lite spoke about the upcoming block halving for Litecoin and how it could affect the prices of Litecoin or Bitcoin [BTC]. He also addressed a movement/initiative called “Proof-of-Keys” in the interview with Crypto Insider.
Litecoin’s block mining reward halves every 840,000 blocks, the coin reward will decrease from 25 to 12.5 coins on August 08, 2019. For Bitcoin, the same will happen after every 210,000 blocks and the coin reward will decrease from 12.5 to 6.25 coins on May 26, 2020.
In general, people in the community have this misconception that block halving would push the prices of the coin up, but Charlie Lee said otherwise. Lee explained that block halving has no direct correlation with the prices and that the last halving had little or no effect on the prices of Litecoin.
Furthermore, Lee added that it was hard to predict prices and that halving would lead to something known as “self-fulfilling prophecy” which people think will help push prices upwards and if everyone or most of the people think along these lines it will lead to buying and hence increase the prices.
“There’s a small potential where miners could be not selling when the having happens so if the miners believe in the coin, in their mining the coin at potentially in loss, after they’re halving they would still mine and not sell, in that remove some selling pressure on the market which helps the price.
So that could help the price a little bit but other than that I don’t think it has a huge effect on the price”
In addition, Lee said that the sound money properties that Bitcoin and Litecoin posses, helps him work on them and that it excites him. He spoke about the initiative to move the funds away from the exchanges and into their own personal wallets on January 3 and said that he still was not sure if this was a good idea or not.
“It’s being called as the ‘Satoshi run’ which is basically kind of a bank run for everyone to withdraw their coins off of exchange to prove that the exchange actually has your coin and also to get people used to the idea of they can control your own money and securing your own coins yourself.”
He continued that he likes this idea and that it keeps the exchanges on their toes so that exchanges would put more effort into protecting people’s funds.
Lee said that this initiative would help educate people on how to secure their own coins and basically be their own banks. Lee stated:
“… what I don’t like about this initiative is that it could potentially cause people to make a mistake and lose money. A lot of people who keep money on exchanges are those that aren’t very technical and don’t know how to secure their coins.
They probably have a lot of malware on their Windows machine so if they actually move coins to their own personal computer, the malware could steal those coins.”
Subscribe to AMBCrypto’s Newsletter
Follow us on Telegram | Twitter | Facebook
Akash is your usual Mechie with an unusual interest in cryptos and day trading, ergo, a full-time journalist at AMBCrypto. Holds XRP due to peer pressure but otherwise found day trading with what little capital that he owns.