If you can’t withstand a 90% drop, then don’t buy it, Charlie Lee warns on the upcoming halvening

With Litecoin halving lurking right around the corner, technologists and industry veterans are paying close attention to study its offshoot implications on crypto-driven ecosystems. As speculations ranging from lower block rewards to a total shutdown of the market have introduced a new paradigm of restlessness, business leaders are taking a stand to clear out some of the fog related to their particular ecosystem.

In this effort, Litecoin creator, Charlie Lee made a rare appearance on an interview to share his previous experience with BTC and LTC halvenings and what to expect in its reappearance. Against the backdrop, Lee opined that the resultant “shock” from the halvening can not only impact mining profitability but may also force some of the miners to shut down temporarily. He added,

“The blocks will slow down for sometime, we will readjust and everything will be fine. But it’s definitely a shock to the system.”

He also highlighted the general public’s notion of buying crypto, which is widely aimed at earning profits. Hinting at a self-fulfilling prophecy, Lee believed that the ongoing price rise in the overall crypto prices is directly related to the recent influx of investments before the halvening. Taking cues from LTC’s previous halvening, Lee displayed certainty about the inevitable rise in the crypto’s prices.

In what seemed like a popular investment advice within the crypto community, Lee warned the viewers,

“It (crypto prices) can drop to $20, and don’t be surprised if it does. If you can’t withstand a 90% drop, then don’t buy it because it’s too risky for you.”