Quote:
Originally Posted by Raekwon
What is the reason for the litecoin crash? Is it just because its value was linked to the bitcoin value?
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Everything is linked to Bitcoin value. Aside from the whole overall confidence in cryptocurrencies, all minor cryptocurrencies are inherently difficulty to convert to real world cash.
You basically have to find an exchange that supports trades of your Litecoins or Sexcoins or Dogecoins or BBQcoins, etc. and this is almost 100% always going to be for Bitcoins.
For that reason, if you have your money locked up in Litecoins and you want to cash out, you are screwed when Bitcoin starts to tank because you have to first convert your Litecoins to Bitcoins and then Bitcoins to cash. That adds two layers of panic selling. People trying to panic sell Litecoins for Bitcoins -> which people are already panic selling. This effectively multiplies the monetary loss you go through to convert them to actual money.