The future of crypto has been on the spotlight in the past few weeks as US lawmakers and politicians publicly attack bitcoin, Libra, and cryptocurrencies in general. Despite all this noise and uncertainty, Litecoin Haus CEO and early pioneer of Litecoin believes that the future of crypto is good, he said in an interview with ChainTalk.
Litecoin Haus’ core business is developing solutions for the Litecoin system. Litecoin is currently the fourth-largest cryptocurrency by market capitalization. Its prospects are even looking better as the countdown to the halving process comes to a close. Litecoin is currently trading at $88 according to TradingView data.
Richards heard about bitcoin in 2012 but seriously got involved in the industry in 2012 when its price was still as low as $40. He heard about via a passing comment in a YouTube show.
Franklyn, despite studying finance at university, has an interest in science and technology. He says he is naturally interested in cryptocurrency.
“I kind of fell into cryptocurrency.”
He was mainly attracted to crypto because of its “ability to improve finance for everybody.” Cryptocurrencies have the potential to cater to billions of the underbanked people particularly those in emerging markets.
Richards said that Litecoin is not a competitor of bitcoin, but rather, complements it. Both assets are used as speculative vehicles but bitcoin takes the prize in this regard. He said bitcoin holders are not using the digital asset for microtransactions such as paying for coffee. It’s used by “people sending high-value transactions across the world.”
The future of crypto
The future of crypto is shaping up on a daily basis despite a hostile environment from regulators and lawmakers. Cryptocurrencies haven’t really taken off as transactional currencies because of low speed and high costs. Things are improving as solutions such as Lightning Network are being developed to address these flaws.
He said people currently know when they are transacting on the blockchain or off-chain but the future will be different. This is because consumers only want a system that they trust and rely on. They don’t need to know whether it’s on the chain or not.
“The future will be inevitably invisible to most people.”
He added that there will be bitcoin banks in the future. However, this will happen if bitcoin becomes more of a transactional currency than a speculative asset it is now.
Richards described the Lightning Network as a “contract you enter into to send one bitcoin or litecoin to which you have keys to.” He added that it thrives on cooperation but there are ways to punish uncooperative participants.
The interview touched on the security of digital assets. This is important considering that many investors have lost their wealth as a result of hacks or lost private keys. He urged investors to use regulated exchanges and be extra careful when sending money from one address to the other.
He added that those buying higher volumes of crypto assets (around $100 million) or buying on behalf of clients should use professional custody solutions. Only tech-savvy people should consider storing their own digital assets.