Top 8 Reasons Why People Fear Investing in Litecoin || Crypto Flashes

Litecoin was launched in 2011 as a response and 
improvement upon bitcoin. In the ten years hence,   it hasn't quite taken off as bitcoin has managed 
to. There are a variety of reasons for this.   Even so, Litecoin is still a digital asset 
which many investors have had their eyes on.   Now, you may have heard of reasons why 
it's a great idea to invest in Litecoin. However, why don't we do the reverse and tell 
you eight reasons why some people veer away   from this cryptocurrency? Some of these reasons 
are logical. Others are harder to understand.   Either way, stick around to learn what they are. Before we dive into the video, please make sure 
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Now let’s get started…
…  8. Litecoin has Branding and Image Issues
As the entire catalogue of available   cryptocurrencies reel against the barrage 
of attacks from regulatory bodies,   banks, governments and journalists, Litecoin 
is especially down bad in this regard.   Litecoin is the second most used 
cryptocurrency on the dark web,   a hotbed for the worst criminal activity. Such 
a statistic can cause established investors   and banks to raise an eyebrow when Litecoin is 
involved. In addition, the developer team behind   Litecoin hasn't done enough to brand the digital 
asset in a way that is attractive to investors.   Most people only have negative feelings about 
it. Others often confuse it with bitcoin. 7. Slow Growth Rate
Despite being one of the first cryptocurrencies   ever made, Litecoin has struggled to take off as 
bitcoin and others have.

Sure, as the fifth most   traded cryptocurrency worldwide, it isn't doing 
too bad. However, given its age and functionality,   there's the expectation from investors that 
it would do way more than this. Currently,   Litecoin trades at around 170 dollars compared 
to bitcoin's 40,000 dollars. To many investors,   even those who play for the long term, this 
is disappointing. Many other cryptocurrencies   are far more competitive and are capable of 
providing both short term and long-term gains.

6. Instability
All cryptocurrencies are victims of the tides   and fluctuations of the market. Even so, some are 
able to brace against price drops and recover way   easier than others. Litecoin is in the latter 
category, lacking the X factor, which makes its   price bounce back from sharp drops. In addition, 
it has been losing market cap rather than gaining   it. Though it peaked at number five around 2017, 
it is currently number 12. It is outperformed by   other newer coins, even those that lack the 
same degree of security and functionality. 5. Uncomfortable with its Decentralized Nature
Litecoin is decentralized in nature. Even though   this isn't unique to it as a cryptocurrency, 
it's part of a big reason why investors are wary.   Being decentralized means it's out of 
the hands of the original developers.   And so, in a sense, Litecoin no longer belongs 
to them and now belongs to no one. It being   decentralized means that there's no one to be 
held accountable regarding Litecoin.

Even though   some traders love this nature, a lot of huge 
institutions like banks and governments are wary. 4. Environmentally Harmful
Being technically similar to bitcoin,   Litecoin needs to be mined in order to generate 
new units. This mining process is quite rigorous   and environmentally taxing. The environmental 
impact of cryptocurrency mining is one of the   reasons many investors have shied away from 
the marketplace. After all, the earth is in   an environmentally precarious position, and 
many policymakers are trying to cut down on   harmful human activities. Although Litecoin 
mining hasn't been affected so far, there's   no reason it won't all come to a grinding halt 
the moment some new policies are put into place. 3. Investors are more comfortable with other coins
There are about 200 cryptocurrencies in existence   today. Many more are being developed as we 
speak. With the competition being so tight,   a lot of investors veer away from Litecoin 
because they think the alternatives are   better. These coins may seem more attractive 
for a variety of reasons. Perhaps the coins   have better functionality. Perhaps they are 
more secure or less environmentally harmful.   In any case, there are a ridiculous number of 
options for cryptocurrency investors these days.   Other coins like Monero, Polkadot, Ripple, 
Chainlink, Cardano and Solana are all up   for grabs.

Some of these, like Chainlink, have a 
ridiculous amount of good branding. Others like   Ripple have a dedicated team behind it to help 
it develop. In any case, Litecoin is losing out. 2. Misunderstanding its Capabilities  Esteemed investor Warren Buffet says one of 
the keys to his success is that he does not   invest in technology he does not understand. 
Unfortunately, so many people have taken this   the wrong way and veer away from any new thing. 
What Warren meant by this is that it's best to   read and understand all facets of an asset before 
putting your money into it. Unlucky for Litecoin,   where it is concerned, investors don't want to do 
the research to understand what it is capable of   and how it distinguishes itself 
from bitcoin and other stable coins. 1. Fear of Regulatory Action  This is another reason that isn't particular 
to Litecoin but to cryptocurrencies as a whole.   As these digital assets have grown in popularity 
and gained increasingly large market shares,   regulatory bodies may be looking to clamp 
down on them. Unfortunately, many of these   cryptocurrencies are decentralized, making it 
difficult to target any one team of developers   to get them to reign in their product.

this does not mean that the regulatory bodies   are powerless. They could always target the banks, 
crypto exchanges and internet service providers.   And so, until regulatory bodies decide what to 
do with crypto, most smart investors are simply   observing for the time being.
…  So there you have it. Eight great reasons 
why people fear investing in Litecoin.   Of course, this doesn't make Litecoin 
a bad investment. But watching out   for some of these reasons won't be a bad idea.
Financial marketplaces have always been strange   spaces to navigate. When you factor in crypto, 
that strangeness goes up a notch. And so, nobody   has all the answers. For all we know, Litecoin 
could be leading the charge in a matter of hours.  …
As we come to the end of this video,   we hope you have learned some key reasons why 
people fear investing in Litecoin. Some of these   reasons are hyper-specific, while some are common 
to cryptocurrencies as a whole. In any case,   it's good to judge these reasons so as to know 
if Litecoin could be a great investment for you.   Otherwise, like the people whose mentalities are 
guided by these fears, you could also stay away.

Is there some reason people 
fear investing in Litecoin   you feel we may have missed? 
Please share your thoughts below. As we sign off, we'd like to remind 
you to leave a like, subscribe,   comment and share if you liked the video. 
Our videos always exciting and engaging,   and you wouldn't want to miss out on the next one. 
Till then, take care of yourself. Catch you later..

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