In 2023, Bitcoin has reaffirmed its position as the top-performing asset class, surpassing stocks, bonds, and gold with a remarkable 150% price surge since the year's commencement. The institutional embrace of Bitcoin has been evident, highlighted by BlackRock's ETF application in June and a dozen pending applications from major firms like Invesco, ARK, Fidelity, VanEck, and Franklin Templeton. Despite the SEC's initial rejection of GBTC's application, a subsequent court ruling discrediting the SEC's rationale, coupled with October's swirling approval rumors, triggered a significant uptick in Bitcoin's value.
The energy consumption associated with Bitcoin mining and security has witnessed a substantial increase, with the mining hashrate skyrocketing 100% from 240 exahash to 482 exahash year-to-date. Bitcoin's network maintained a flawless 100% uptime for the 14th consecutive year, and its positive impact on the environment has gained recognition. Looking ahead to 2024, the anticipated 'halving' is poised to occur, reducing Bitcoin's new issuance by 50% at block 840,000, projected for late April. Historical patterns suggest that bull markets tend to follow halving events, and the high probability of one or more spot Bitcoin ETF approvals is set to broaden access for traditional capital.
In terms of technology, Bitcoin experienced notable trends in 2023, including the ongoing influence of the Taproot upgrade, enhancing transaction efficiency and privacy. The Lightning Network, designed to facilitate faster and more cost-effective transactions, further matured during the year. Amidst lingering global financial uncertainties in 2024, Bitcoin's stability may emerge as an attractive proposition for individuals, institutions, and governments seeking refuge from chaos. With record valuations against weakened currencies, backing from global political figures, and growing adoption by individuals and businesses globally, Bitcoin's surge is fueled by a multitude recognizing its role as a safeguard for global monetary integrity and asserting sound money as a fundamental human right.
