{"id":113317,"date":"2019-09-09T00:59:04","date_gmt":"2019-09-09T07:59:04","guid":{"rendered":"https:\/\/cryptoslate.com\/?p=113317"},"modified":"2026-10-18T11:54:28","modified_gmt":"2026-10-18T10:54:28","slug":"charlie-lee-bitcoin-and-litecoin-are-the-best-forms-of-money-ever-seen-interview","status":"publish","type":"post","link":"https:\/\/cryptoslate.com\/charlie-lee-bitcoin-and-litecoin-are-the-best-forms-of-money-ever-seen-interview\/","title":{"rendered":"Charlie Lee: Bitcoin and Litecoin are the best forms of money ever seen [INTERVIEW]"},"content":{"rendered":"<p>In an exclusive interview with CryptoSlate, <a href=\"https:\/\/cryptoslate.com\/people\/charlie-lee\/\">Charlie Lee<\/a> shares his vision for how <a href=\"https:\/\/cryptoslate.com\/coins\/bitcoin\/\">Bitcoin<\/a> and <a href=\"https:\/\/cryptoslate.com\/coins\/litecoin\/\">Litecoin<\/a> can fundamentally challenge governments and revolutionize how people transact. Ultimately, he argues that cryptocurrency is the best form of money ever seen.<\/p>\n<h2>Scaling problems with Bitcoin<\/h2>\n<p>One of the most commonly cited problems with Bitcoin is its inability to scale. The network has a <a href=\"https:\/\/www.comp.nus.edu.sg\/~prateeks\/papers\/Bitcoin-scaling.pdf\">maximum capacity<\/a> of somewhere between 3 and 7 transactions per second (TPS). During times of heavy use, this can cause a single transaction to cost upwards of $5.<\/p>\n<p>Critics often use VISA as a benchmark. The leading payment processor handles an average of roughly 2,000 TPS, up to 56,000 TPS at theoretical peak capacity.<\/p>\n<p>These same concerns are why many altcoins exist. Projects such as <a href=\"https:\/\/cryptoslate.com\/coins\/bitcoin-cash\/\">Bitcoin Cash<\/a>, <a href=\"https:\/\/cryptoslate.com\/coins\/eos\/\">EOS<\/a>, and <a href=\"https:\/\/cryptoslate.com\/coins\/tron\/\">TRON<\/a> tout higher transaction throughput\u2014at the cost of greater centralization\u2014supposedly solving the core issues around Bitcoin.<\/p>\n<h2>Bitcoin works today<\/h2>\n<p>Unlike other altcoin founders, Litecoin creator Charlie Lee has a drastically different opinion on the scaling debate.<\/p>\n<blockquote><p>\u201cBitcoin and Litecoin work perfectly fine right now, as a store of value and it\u2019s relatively easy to pay and relatively cheap compared to a wire transfer, for example.\u201d<\/p><\/blockquote>\n<p>According to Lee, Bitcoin\u2019s major value proposition isn\u2019t competing with payment processors like VISA, but with banks and financial institutions themselves.<\/p>\n<blockquote><p>\u201cToday, if I want to send a large amount of money overseas then I have to do a wire transfer, it costs $20-35 per transfer, and it takes half a day. And you have to jump through hoops to make that happen. And it can be censored, and potentially even reversed.\u201d<\/p><\/blockquote>\n<p>And, over time, Charlie Lee predicts that Lightning Network and other second-layer solutions will solve many of the scaling problems experienced by Bitcoin on the base layer.<\/p>\n<p>Meanwhile, other proponents have argued that Bitcoin is not a competitor to VISA or PayPal.<\/p>\n<blockquote><p>\u201cIt competes with local governments, legal systems and property rights\u2014the fundamental layers of the existing [society] stack\u2014not with the payment processors that sit on top of it,\u201d argued Hasu, a well-known (anonymous) Bitcoin theorist in his essay <a href=\"https:\/\/medium.com\/@hasufly\/bitcoin-and-the-promise-of-independent-property-rights-8f10e5c7efa8\"><i>Bitcoin and the Promise of Independent Property Rights<\/i><\/a>.<\/p><\/blockquote>\n<p>Lee seems to agree, saying that Bitcoin already offers utility to people by replacing wire transfers.<\/p>\n<blockquote><p>\u201cWith Bitcoin, you get an uncensorable, irreversible transaction that cost $1. Even if you want to send millions. Compared to wire transfer it\u2019s ridiculously better.\u201d<\/p><\/blockquote>\n<h2>Better than gold<\/h2>\n<p>One vocal Bitcoin critic, <a href=\"https:\/\/cryptoslate.com\/pomp-and-peter-schiffs-showdown-on-cnbc-crypto-trader-bitcoin-vs-gold\/\">Peter Schiff<\/a>, argues that gold is the superior store of value with a track record spanning thousands of years. The CEO of Euro Pacific Precious Metals makes the case that gold is the answer to inflation and monetary mismanagement.<\/p>\n<p>Instead, Lee argued that between Bitcoin and gold, \u201cit\u2019s not even comparable.\u201d The <a href=\"https:\/\/cryptoslate.com\/gold-forgery-crisis-need-bitcoin\/\">reasons are obvious<\/a> when examined in greater detail.<\/p>\n<p>Verifying gold\u2019s authenticity is costly, it requires large centralized institutions to custody and trade efficiently, and it\u2019s easy for central governments to confiscate. Bitcoin and Litecoin solve these fundamental problems. And, in doing so, have tremendous potential to grow, according to Lee.<\/p>\n<blockquote><p>\u201cGold\u2019s market cap is almost $10 trillion. So gold has 30-50 times the market capitalization of Bitcoin. So, Bitcoin still has a lot of room to grow. And it\u2019s doing things really well today.\u201d<\/p><\/blockquote>\n<h2>Fiat, it\u2019s not really your money<\/h2>\n<p>Prior to the advent of cryptocurrency, Charlie Lee argued that money was under the tight supervision of governments.<\/p>\n<blockquote><p>\u201cYou can\u2019t use it for stuff because the government says you can\u2019t. And it\u2019s hard to move money around.\u201d<\/p><\/blockquote>\n<p>As an example, prior to discovering Bitcoin, Charlie Lee describes a prolific \u201conline poker banning event.\u201d In April 2011, the owners of the three biggest online poker sites\u2014PokerStars, Full Tilt Poker, and Absolute Poker\u2014were arrested and the sites were <a href=\"https:\/\/www.cnbc.com\/id\/42649117\">shut down<\/a> over allegations of money laundering and bank fraud.<\/p>\n<blockquote><p>\u201cIt was probably lobbied by Vegas or other casinos, where the online poker was cutting into their profits,\u201d he said.<\/p><\/blockquote>\n<p>But it wasn\u2019t the arrests that stopped online poker, added Lee. People used to access these services using dollars, sending money via credit card and wire transfer. So the real way the U.S. government stopped people from accessing these services was by blocking payments.<\/p>\n<blockquote><p>\u201cAnything moving from banks to these poker sites was being effectively censored because the government says it\u2019s illegal. And that really highlighted the fact that it\u2019s not really your money.\u201d<\/p><\/blockquote>\n<h2>Governments can\u2019t stop cryptocurrency<\/h2>\n<p>Now, thanks to Bitcoin, Litecoin, and other cryptocurrencies, governments can\u2019t stop online services through censorship of payments. Another example he provided was the rise of Silk Road and other darknet marketplaces\u2014the proving grounds for Bitcoin\u2019s resilience and utility.<\/p>\n<p>Both Bitcoin and Litecoin are used for buying drugs, laundering money, and financing terrorism. Yet, in spite of intense scrutiny from the most powerful governments in the world, these networks continue to thrive.<\/p>\n<p>To emphasize the magnitude of this scrutiny, the founder and operator of Silk Road, Ross Ulbricht, was <a href=\"https:\/\/www.docketalarm.com\/cases\/New_York_Southern_District_Court\/1--14-cr-00068\/USA_v._Ulbricht\/269\/\">sentenced<\/a> to double life imprisonment, plus forty years, without the possibility of parole. Cryptocurrency can circumvent these controls because no one controls it and no single person is culpable. Whereas for Silk Road, Ulbricht takes the blame.<\/p>\n<blockquote><p>\u201cI see cryptocurrency as freedom of money. Compared to the internet, for example, which is freedom of information. Cryptocurrency frees people\u2019s money,\u201d argued Lee.<\/p><\/blockquote>\n<h2>Are cryptocurrencies a net positive for society?<\/h2>\n<p>Many financial regulations exist to prevent the financing of terrorism, crime, and other activities that harm public welfare. As such, it\u2019s appropriate to ask whether cryptocurrency jeopardizes the public welfare by taking away an enforcement tool.<\/p>\n<blockquote><p>\u201cIt will definitely be a net positive for society,\u201d Lee responded. \u201cI think money should be free. But, If you\u2019re doing something illegal then that should be stopped. But not through censorship of money.\u201d<\/p><\/blockquote>\n<p>There are times when regulations overstep the boundaries of what\u2019s acceptable, he argued. Policing people\u2019s decisions\u2014especially those that don\u2019t impact others, like drug use and online gambling\u2014is antithetical to individual choice and vulnerable to government abuse.<\/p>\n<blockquote><p>\u201cI feel like people should be able to do whatever they want with their own bodies, as long as it doesn\u2019t harm anybody else. And it\u2019s their money, so they should be able to do it.\u201d<\/p><\/blockquote>\n<p>Lee provides another analogy to the internet. \u201cIt\u2019s like the censorship of information,\u201d he continued.<\/p>\n<blockquote><p>\u201cFor example, the Chinese government censoring online information so their citizens don\u2019t know what\u2019s actually going on. Because they don\u2019t get the real information, they effectively get fed propaganda and lies. That\u2019s just wrong.\u201d<\/p><\/blockquote>\n<h2>The future of Bitcoin<\/h2>\n<p>Bitcoin and Litecoin offer people a fundamentally new way to transact, in spite of the government. At some point people won\u2019t even know they\u2019re using cryptocurrency to pay for goods and services, Lee argued.<\/p>\n<blockquote><p>\u201cIn the future, people will be using Bitcoin and Litecoin and not even know what's happening in the background. Whether or not they\u2019re even using Bitcoin or Litecoin, all they care about is that they\u2019re sending money from themselves to someone else for goods and services.\u201d<\/p><\/blockquote>\n<p>Ultimately, Charlie Lee asserts that cryptocurrency is a revolution that has the potential to fundamentally alter money.<\/p>\n<blockquote><p>\u201cI see cryptocurrency as freedom of money\u2026. I\u2019d like to see that revolution happen, where cryptocurrencies become the reserve currency, where everyone will use it as money. It\u2019s just the best form of money we\u2019ve ever seen.\u201d<\/p><\/blockquote>\n","protected":false},"excerpt":{"rendered":"<p>In an exclusive interview with CryptoSlate, Charlie Lee shares his vision for how Bitcoin and Litecoin can fundamentally challenge governments and revolutionize how people transact. Ultimately, he argues that cryptocurrency is the best form of money ever seen. Scaling problems with Bitcoin One of the most commonly cited problems with Bitcoin is its inability to [&hellip;]<\/p>\n","protected":false},"author":29,"featured_media":113318,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[10085,29],"tags":[],"post_folder":[],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v21.9 (Yoast SEO v21.9.1) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Charlie Lee: Bitcoin and Litecoin are the best forms of money ever seen [INTERVIEW]<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/cryptoslate.com\/charlie-lee-bitcoin-and-litecoin-are-the-best-forms-of-money-ever-seen-interview\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Charlie Lee: Bitcoin and Litecoin are the best forms of money ever seen [INTERVIEW]\" \/>\n<meta property=\"og:description\" content=\"In an exclusive interview with CryptoSlate, Charlie Lee shares his vision for how Bitcoin and Litecoin can fundamentally challenge governments and revolutionize how people transact. 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