Bitcoin rate goes to $ 250,000 through the Lightning Network

Bitcoin is doing well again this year, and then the good predictions come naturally. At a Blockchain Summit in Malta, venture capitalist Tim Draper is very positive about bitcoin: “I expect bitcoin to tap the $ 250,000 in 2022 or 2023.”

Development Lightning Network works wonders

According to Tim Draper, the Lightning Network helps to ensure that the price of bitcoin rises so fast. With the help of the Lightning Network, bitcoin can handle many more transactions per second.

“I think bitcoin payment processors are going to make sure there is a tidal wave of adoption,” says Draper. “Through the Lightning Network and OpenNode, everyone can move bitcoin freely and quickly. In this way, bitcoin is not only a potting agent, but the coin can also be used for micro payments. Bitcoin can be used for retail, and it can be spent indefinitely. “

What is the Lightning Network?

Tim Draper refers to the current scale problem of bitcoin. The bitcoin blockchain can now handle a maximum of seven transactions per second. Is bitcoin used worldwide as a payment method? Then the blockchain runs up to its limits.

The Lightning Network solves this scaling problem. This network is a kind of layer over the blockchain. Thousands of transactions can be sent per second on this layer.

And all with minimal transaction costs. A transaction only has to cost a satoshi, that is one millionth of a bitcoin. With the value now, that comes down to around 0.00008 euros. That is considerably less than the 66 euro cent that you now pay for a bitcoin transaction.

The payment network has been in existence since 2018 and is still in full development. The Lightning Network is still difficult to use, but more and more wallets are being developed with which you can easily use the network. Think for example of Blue Wallet and Breez.