Bitcoin in 2023: A year of turmoil, growth, and hope
The year 2023 was a rollercoaster ride in the world of Bitcoin. We saw the price dip down and climb up again, we saw exchanges crash, and CEOs step down. But we also saw more people adopt Bitcoin and its technologies than ever before. Let’s reflect and take a closer look at what shaped the cryptocurrency landscape in 2023!
The numbers
Bitcoin price is the most obvious barometer of its fitness. Despite some rocky beginnings, the big picture shows that Bitcoin is indeed quite fit. It started the year around $17,000 for BTC, however, it soon got to just under $30,000 and stabilized, steadily climbing up. In December, we saw it surpass $40,000 and that’s where it stands now, around the price from early 2022. This nearly threefold increase in value within a single year shows potential that the bear market might be coming to a close, especially with a bunch of exciting events coming up in 2024.
While price surges are exciting, other vital statistics have also captured our attention. Bitcoin transactions reached an all-time high, reaching 700,000 transactions per day towards the end of 2023. This only proves a growing interest in Bitcoin, however, it is important to remember that increased demand can sometimes result in higher blockchain fees. As great as it is to see Bitcoin being used daily by so many, it’s crucial that the network remains democratically usable for everyone.
One of the best solutions that address this concern is the Lightning Network which has also recorded substantial growth throughout the year, nearing 100,000 transactions per day with minimal fees and lightning-fast speed. It has proven to be especially helpful for internet microtransactions, such as tipping on streaming and other social media platforms such as Nostr.
The events
One of the most significant events that shaped the 2023 crypto market was the bankruptcy of FTX and the subsequent conviction of its CEO, Sam Bankman-Fried. This sent shockwaves through the industry, followed closely by another scandal at Binance, the world's largest crypto exchange. Its CEO, Changpeng Zhao (CZ), stepped down from his role in November after being arrested for non-compliance with U.S. anti-money laundering laws.
Arrests of some of the most prominent crypto figures and defrauded funds of many of centralized exchange users naturally shook public trust in cryptocurrencies and contributed to a dip in Bitcoin's price. However, we can also see a silver lining. The scandals prompted a wider discussion and led many users to reevaluate the importance of custody of their crypto. As a result, an increasing number of people are opting to store their coins in hardware wallets like Trezor, ensuring their security and control.
Complementing the custody debate, the world also saw rising Bitcoin adoption and a thirst for education. Events like BTC Prague, Europe's largest BTC-only gathering, witnessed record attendance and enthusiasm. Participants embraced the idea of the “build market”, emphasizing that a bear market is an opportune time to initiate new projects and develop new technologies in preparation for another Bitcoin boom. Innovative products, entrepreneurs and world leaders advocating for Bitcoin, or stories of its impact on economies in Africa or Latin America demonstrate that Bitcoin's essence remains unshaken.
The future
As we look forward, two significant milestones are on the horizon. The first is the Bitcoin halving, expected in April 2024. This is part of Bitcoin’s design, leading to rewards for the miners getting halved. This in practice makes Bitcoin scarcer (as new coins are released half as fast) and potentially increases its value in the following months.
The second milestone is the anticipated approval of Bitcoin Exchange-Traded Funds (ETFs) in the United States, potentially happening as early as January. This development could lend greater credibility to Bitcoin as an asset, open it up to a broader investor base, and help it become a part of many new portfolios, again increasing its value.
What about us?
With halving and ETFs likely attracting many newcomers into the world of Bitcoin, at Invity, we’re ready to keep spreading our message of education and financial independence.
You can look forward to more educational blog articles and the regular Invity Beacon newsletter, summarizing important crypto topics in a casual manner. We’re also working on new and improved features in the newcomer-friendly Invity mobile app, and we’ll of course continue to provide you with a secure trading experience within the Trezor hardware wallet.
Just all the safe & simple things in life that bring crypto closer to people from all walks of life! Thank you for joining us on our journey in 2023 and we look forward to sprinting towards the next bull market with you!