Bitcoin price could see a boost of up to $30,000 by the end of 2018 thanks to a new technology that will replace blockchain, said Dan Ciotoli, a bespoke blockchain analyst.
Speaking to CNBC, the expert explained how Lightning, a new network for cryptocurrency transactions, will replace blockchain and become the real driver of cryptocurrency’s value.
He said: “I think that the Lightning network could really be huge for bitcoin in 2018 because what I’m not seeing now is commerce involving bitcoin.
“No one is actually selling goods or services for bitcoin in a way that is profitable to them because those transactions fees are so high.
“With the Lightning network you’ll see a big reduction in transaction fees and I think that would bring the next wave of people to the bitcoin ecosystem.
“There are differences, of course, among all the cryptocurrencies but the impact of the Lightning network will be limited to bitcoin and litecoin.”
He added: “There is also ethereum that has a bit faster transactions than bitcoin, but it still can run into the same issue if it gets the same usage that bitcoin does.”
The Lightning network will facilitate agreements between people to make faster and cheaper transactions off the blockchain.
Mr Ciotoli explained how the bitcoin crash in January was “inevitable” after the “big run-up in December”.
Bitcoin reached its highest value in 2017 when the cryptocurrency’s price skyrocketed to $20,000.
According to Coindesk at 08:03am GMT, on January 25, bitcoin price is $11,403.69.
At the same time, bitcoin rivals Ripple and ethereum are respectively priced at $1.37 and $1,083.71.