Tim Draper has always been a huge bitcoin advocate, but in a recent interview, he explains why he’s so convinced BTC is headed for the stars and beyond.
Draper Says the Lightning Network Will Do Great Things
In the past, Draper has stated that bitcoin is likely to hit $250,000 by the time 2022 rolls along. He later altered his prediction a bit to suggest that this figure would instead be reached in the early months of 2023, thereby pushing things back somewhat. However, he stands by his prediction and commented a bit more on why he seems to think this will occur.
During his interview, Draper stated that bitcoin is likely to hold a lot of power in the future thanks to its affiliation with the Lightning Network, which he says will shoot BTC into mainstream territory. The Lightning Network has garnered quite a bit of attention over the years due to its alleged ability to improve the bitcoin network’s speed and boost transaction times.
Bitcoin is the oldest cryptocurrency out there. Around since 2008, it gave birth to the digital finance space and without it, we likely never would have seen Ethereum, EOS or Litecoin rise to the occasion. However, while bitcoin is still widely respected and viewed as a solid wealth-sustaining tool, its technology leaves a lot to be desired.
For example, transactions on the bitcoin blockchain are quite slow in comparison to other blockchains. Ethereum and EOS are often able to complete transactions within the space of a few hours or even a few minutes. With bitcoin, money transfers could take a few days. This isn’t good when people are expecting their funds quickly or within a certain period. Thus, while bitcoin still holds its place in the crypto industry, it’s not always viewed as the most prominent currency for remittance payments or similar ventures.
However, the Lightning Network is a technology that could potentially change all this. Granted bitcoin becomes faster and more comparable to newer blockchains, the currency is more likely to hold its place and garner new customers.
Slow Blockchains Are Becoming Common with Age
Slow transactions tend to occur when a blockchain ages and becomes saturated. The same thing has happened with Ethereum as of late, with co-founder Vitalik Buterin commenting that the second-largest cryptocurrency by market cap is suffering from scalability issues due to the growing number of decentralized apps and tokens being built on its blockchain. The network is now considering an algorithmic move from proof-of-work to proof-of-stake – known as Ethereum 2.0 – which is alleged to help the blockchain deal with its newfound scalability problems.
Draper isn’t the only one shelling out bullish predictions for bitcoin’s price. Tom Lee of Fundstrat fame also predicted that the coin could potentially end the year at $40,000 though with less than two months left to go, this seems unlikely.