Bitcoin in 2022: ETFs, Halving, Upgrades - A Sneak Peek

• Bitcoin's Stellar Performance in 2023 and Predictions for 2024
• Institutional Interest in Bitcoin Increases
• Growth in Bitcoin Mining and Security
• Bitcoin in 2024: Halving and More
• Technology Trends and the Future of Bitcoin

Bitcoin's Stellar Performance in 2023 and Predictions for 2024

In 2023, Bitcoin$42,260 -0.64% took the limelight as the best-performing asset class, outclassing stocks, bonds, and gold with a remarkable 150% price surge since the start of the year.

Institutional Interest in Bitcoin Increases

The year 2023 was a historic one for Bitcoin, marked by a significant increase in institutional interest. This was most prominently seen in BlackRock's application for an ETF in June. Several other institutions such as Invesco, ARK, Fidelity, VanEck, and Franklin$0.0015 -3.24% Templeton have also entered the fold with as many as 12 ETF applications currently open. Although the SEC denied GBTC's application, a court decision deemed the SEC's reason for rejection as invalid. A mere rumor of approval in October sent Bitcoin's price soaring.

Growth in Bitcoin Mining and Security

The energy utilized for Bitcoin mining and security saw substantial growth as well. The mining hashrate doubled from 240 exahash to 482 exahash within the year. This rate measures the number of calculations per second needed to add another block of transactions to Bitcoin's ledger every ten minutes. Bitcoin remains the most secure and dependable digital system worldwide, boasting 100% network uptime for the 14th consecutive year. 2023 also witnessed widespread recognition that Bitcoin's relationship to energy and the environment is largely positive, contributing to electrical grid stabilization and creating economic incentives to reduce carbon emissions.

Bitcoin in 2024: Halving and More

Looking into 2024, a significant event on the horizon is the next "halving," where new Bitcoin issuance will decrease by 50% at block 840,000, anticipated for late April. In spite of growing Bitcoin demand, the per block supply will be reduced. Historically, bull markets have followed halvings. This recurring pattern informs the strategy for 2024 and 2025, factoring in a high likelihood of a bull market.

Besides, there is a high probability that one or more spot Bitcoin ETFs will be approved, potentially opening the floodgates for capital from traditional investment channels. The general consensus is that this is likely to occur in January.

Technology Trends and the Future of Bitcoin

Noteworthy technological trends for Bitcoin in 2023 included the ongoing influence of the Taproot upgrade, which bolstered transaction efficiency and privacy. The maturation of the Lightning Network reinforced Bitcoin's scaling capacity by adding layers atop the Bitcoin protocol to facilitate quicker, more cost-effective transactions. A more mature Lightning Network in a high-fee bull market environment will be intriguing to observe.

As the world grapples with financial uncertainty in 2024, Bitcoin's stability may garner interest from individuals, institutions, and governments seeking to reduce chaos. Bitcoin is establishing record values against weak currencies, gaining support from politicians worldwide, and seeing increased usage by people and businesses globally. Bitcoin's growth, devoid of central control, is propelled by millions who understand its advantages. By safeguarding global monetary integrity, Bitcoin reinforces the belief that sound money is a fundamental human right.

Edited by Jonathan Stoker