Bitcoin’s Lightning Network [LN] is growing faster than expected as the network capacity has increased to a massive 575 BTC worth $2.04 million.
Lightning Network was a solution that would help Bitcoin scale and handle all the transactions and new users that were pouring into the Bitcoin buzz. The LN adds another layer to Bitcoin’s blockchain and allows users to create a channel between users who can then transfer money in a two-way fashion with infinitesimal or no fees.
Lightning Network, since its inception, has grown massively and gained a lot of traction and become mainstream as it is instant and more secure.
As per the data obtained from 1ML, at the time of writing, the number of nodes for LN is at 5,376, which has increased by 20% since last month. The number of channels on the LN main net has also increased by a massive 42.7% in the last month and is currently at about 20,000 channels.
The network capacity has also increased by 21% and is currently worth up to 575 BTC i.e., approximately $205 million worth of BTC is currently on the Lightning Network main net. However, the node countdown is just a few hundred short of reaching a million.
However, these stats are different in comparison to a tweet by a user, @khannib. According to him, the total number of channels open as of January 14, 2019, are ~24K. Moreover, the total BTC value in all channels adds up to $582 BTC i.e., 2.06 million.
@BitfuryGeorge, a Twitter user commented:
“cant wait for the time when I open up my Lightning wallet ; transfer my BTCs and provide liquidity for massive number of micro-transactions.. Hey @rogerkver your deam of buying starbucks coffee for close to no fees –> coming up:”
“Less than 1 year ago, the Lightning Network crossed 1 BTC in channel capacity. Now it’s at 581 BTC. What will it be at in 2020?”
@JuanSaieh, a Twitter user commented:
“Redirecting revenue from miners to routing entities. Its not going to work. Anyone who understand bitcoin knows that miner bussines is sacred. The only problem that bitcoin solves is the double spending prevention.”
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Bitcoin will likely be valued at $100,000 with a market cap of over $2 trillion before the end of 2021
The entire cryptocurrency market seems to be on the brighter side of the market since the beginning of the year. A majority of the coins have recorded significant recoveries from their 2018 slump, a period during which most coins lost over 90 percent of their value, when compared to their all-time highs. Among all the coins in the market, Bitcoin [BTC] aka the digital gold, was noted to be making a massive comeback as the coin breached the $11,000 mark after nearly 15 months. The coin however, soon retracted to settle below the $11,000 level.
According to CoinMarketCap, at press time, Bitcoin was trading at $10,887.27 with a market cap of $93.549 billion. The coin recorded a 24-hour trading volume of $20.757 billion for the past 24 hours and saw a massive rise of over 17 percent over the past seven days.
Anthony Pompliano, Co-founder of Morgan Creek Digital Assets, predicted that the largest digital currency could rise to reach $100,000, before the end of 2021. Pomp added that he was around 70-75 percent confident in this prediction. He stated,
“As I have previously said, making predictions is difficult […] Part of my process as a professional money manager is forming a thesis (price target), identifying a timeline (date), and establishing a confidence level. And then constantly re-evaluating those three aspects of my thought process as I receive new information.”
Pomp however, listed six pointers that have to be understood beforehand. First, this prediction is not an investment advice, and people should do their own research before investing in the digital currency. The second is with respect to Bitcoin’s volatility, with Pomp remarking that since it was a highly volatile market, the coin could witness a significant fall before being valued at $100,000. He stated,
“I anticipate that there will be numerous 20-30% drawdowns from new all-time highs as the asset continues to appreciate in value. These mini-boom/bust cycles should not cause panic, but rather need to be understood as natural market dynamics whenever an asset gains significant value in short periods of time.”
Further, the partner of the investment firm stated that the rise would be driven by several catalysts. This includes institutional adoption, exchange-traded funds and retail product approvals, global instability, governments all across the globe manipulating currencies, markets and economy. He went on to state,
“The market cap of Bitcoin will reach $2+ trillion when Bitcoin is worth $100,000. This is less than 1/3 the market cap of gold and less than 1/40 the global money supply.”
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