The recognized investor and Bitcoin (BTC) supporter Tim Draper remains bullish about the future of the leading cryptocurrency.
He considers that Bitcoin could hit $250,000 by 2023, that would represent a price increase of 2677% from current prices.
Bitcoin To $250,000 By 2023; Is That Possible?
At the AIBC Summit in Malta a few days ago, Draper said that the Lightning Network (LN) and other solutions are allowing users and individuals to spend Bitcoin around the world.
This is eventually going to help the cryptocurrency reach a price of $250,000 in the next three years.
The Lightning Network is a second layer scaling solution created for Bitcoin that would allow it to scale, process micropayments and reduce the congestion in the main Bitcoin blockchain.
At the time of writing this article, the Lightning Network has a network capacity of 820.27 BTC and 34,788 channels opened among 10,415 nodes.
This is not the first time that Mr. Draper considers that Bitcoin could reach $250,000 before 2023. He said that repeated times in the past always taking into account adoption and usability.
Although this seems to be a less conservative price prediction, other figures in the cryptocurrency space such as John McAfee, believe Bitcoin could surge to $1 million in the coming year.
Mr. McAfee said that the cryptocurrency will hit $1 million by the end of 2020. We are almost a year away and things are not so clear regarding the future price action of Bitcoin and other cryptocurrencies.
It is always worth taking into account Bitcoin will be experiencing a halving event in May next year. Although demand shocks seem to have a larger effect on Bitcoin’s price than supply reductions, it is certainly one of the most bullish characteristics of Bitcoin.
The cryptocurrency will be reducing its rewards for miners from 12.5 BTC per block to 6.25 BTC per block. In this way, if there is an increase in the demand for Bitcoin there will be a lower number of BTC available to be sold from miners.
At the time of writing this article, Bitcoin is being traded around $8,800 and it has a market capitalization of $158 billion. In the last 24 hours, the leading cryptocurrency remained stable with a price increase of 0.42%.