According to CoinDesk, Bitcoin has once again become the best-performing asset class in 2023, outpacing stocks, bonds, and gold with a price increase of over 150% since the beginning of the year. Institutional interest in Bitcoin has surged, as evidenced by BlackRock's application for an ETF in June and 12 open applications from firms such as Invesco, ARK, Fidelity, VanEck, and Franklin Templeton. Although the SEC rejected GBTC's application, a court ruled that the SEC's reasoning was invalid, and rumors of approval in October sent Bitcoin's price soaring.
The energy used to mine and secure Bitcoin has also grown significantly, with the mining hashrate increasing 100% from 240 exahash to 482 exahash year-to-date. Bitcoin's network uptime remained at 100% for the 14th consecutive year, and its relationship to energy and the environment has been increasingly recognized as positive. In 2024, the next 'halving' is expected to occur, reducing the new issuance of Bitcoin by 50% at block 840,000, which is anticipated to be mined in late April. Historically, bull markets have followed halvings, and the approval of one or more spot Bitcoin ETFs is highly likely, opening up traditional investment channels to more capital.
Bitcoin's technology trends in 2023 included the continued impact of the Taproot upgrade, enhancing transaction efficiency and privacy, and the maturation of the Lightning Network, which facilitates faster, more economical transactions. As global financial uncertainty continues in 2024, Bitcoin's stability may attract attention from individuals, institutions, and governments seeking to reduce chaos. With record values against weak currencies, support from global politicians, and increased usage by people and businesses worldwide, Bitcoin's growth is driven by millions who recognize its benefits as a safeguard for global monetary integrity and sound money as a fundamental human right.
