The recent downturn in the Bitcoin market has not stopped prominent investors and commentators from making price predictions.
Most recently, Tim Draper — a prominent venture capitalist that has made early investments in China’s version of Google Baidu, Tesla, Skype, and Bitcoin — has doubled down on his call that the leading cryptocurrency will surmount $250,000 within four years’ time.
Lightning Network to Bring Bitcoin to “The Moon”
During the Malta AI & Blockchain Summit this week, Tim Draper, a well-known Silicon Valley entrepreneur that bought his first Bitcoin over five years ago, dropped in through Skype to talk crypto.
When asked about his long-held $250,000 by 2022/2023 Bitcoin price prediction, he looked to the Lightning Network and other solutions that make paying with cryptocurrency easy:
“It’s because of Lightning Network and OpenNode and maybe others that are allowing us to spend Bitcoin very freely and quickly, so that it’s not just a store of value but it can be used for micropayments; it can be used for retail, it can be used all over.”
🔥 Tim Draper’s 2022 prediction 🔥
— Tippin (@tippin_me) November 12, 2019
He went on to say that Bitcoin payments will “open the floodgates” to this industry, giving BTC the potential to make up 20% of the world’s money in due course.
Not the Only Positive Factor
It isn’t only the Lightning Network that may be a boon to the price of Bitcoin in the years to come. In a previous interview, Draper noted that he believes fiat currencies, which he has also dubbed “political currency,” are “poor” in quality when compared with cryptocurrencies.
He specifically cited the controllability, lack of transparency, and subjectivity to political and social whims of traditional forms of money.
The American investor added that with some of the brightest developers, engineers, and academics working on digital assets, a monumental capital flight from fiat to cryptocurrencies is likely to take place over the coming decades:
“My belief is that over some period of time, the cryptocurrencies will eclipse the fiat currencies. That would be a 1,000 times higher than what we have now.”
There’s also the oft-cited idea that the scarcity of Bitcoin will send the cryptocurrency flying with time. John McAfee, the world-(in)famous cybersecurity guru that became crypto’s loudest spokesperson, has said on the matter of his $1 million price prediction:
“Let’s get real, there are only 21 million bitcoins. Seven million of which have been lost forever, and then, if Satoshi [bitcoin’s anonymous creator] is dead, add a few more million.”
What McAfee is arguing is that with increased demand for Bitcoin, the scarce nature of the cryptocurrency will lead to a large supply-demand imbalance in favor of bulls, pushing prices higher at a rapid pace.
Bringing Bitcoin Mainstream
Draper’s latest remark that the Lightning Network will be what allows Bitcoin to grow to the next level is reminiscent of comments made by his pro-crypto peers in Silicon Valley.
Speaking to crypto exchange SFOX in an interview earlier this year, Samson Mow, the Chief Strategy Officer of Blockstream, noted that the Lightning Network will be the solution to Bitcoin’s “identity crisis”:
“You should be making payments over the Lightning Network because that is instantaneous and almost free. That’s what it was designed for. Everything is designed for a different purpose. Bitcoin was designed for settlement and wealth transfer… Lightning was designed for fast payments and cheap payments.”
Indeed, right now, Bitcoin is effectively unusable as a currency for millions of people across the world, sporting a ten-minute block time, low maximum transition output, and inconsistent fees (although fees may sometimes be under $0.10).
The Lightning Network, should it live up to expectations, will show mainstream consumers the true power of blockchain technologies by offering effectively free, instant, and more private payments around the world.