Where does Bitcoin stand 14 years after the first block?

This Tuesday, January 3, 2023, marks exactly 14 years since Satoshi Nakamoto mined the first block (Generation block) on the Bitcoin network. However, the gold digital coin has not had a quiet and peaceful history. Between attempts at censorship and predictions of its collapse, in this article we suggest you discover three key points about Bitcoin.

Bitcoin adoption is faster than internet adoption in the late 90s

Despite the bear market, the adoption of Bitcoin and cryptocurrencies has not weakened as much as critics would like. According to Triple’s data, the ecosystem already has less than 320 million users. According to the former head of Goldman Sachs, this number could reach 1 billion by 2024 and 4 billion by 2030. In a video posted on his YouTube account, a macroeconomic analyst comparing the adoption of cryptocurrencies to that of the Internet said:

“Cryptocurrency adoption is now massively outpacing internet performance. It grew nearly 165% per year compared to 85% for the Internet during the same period. This is the fastest adoption of any technology in human history. »

BTC power mix will reach almost 60% in 2022

The energy consumption of the Bitcoin network is controversial, as some believe it is disproportionate and inconsistent with the goals of energy prudence. Without getting into the relative cost/benefit debate of the electricity used by the actors of the Bitcoin ecosystem, its energy consumption is not really insignificant. At the time of writing, it is at 93.45 TWh, according to data from the Cambridge Bitcoin Electricity Consumption Index.

However, it should be noted that electricity used in the grid does not necessarily come from polluting energy sources. In recent years, miners have made great efforts to turn to renewable energies. BTC’s power mix increased by 23% to 59.4% in the third quarter, according to a report by the Bitcoin Mining Council, an organization that brings together major network miners and other key players in the ecosystem.

The asset has never experienced two consecutive years of decline

Bitcoin ended 2022 down a steep 81.02%. This is the worst annual performance in the history of the entire stock market. Nevertheless, there may be an ounce of hope as the asset has never fallen twice in a row in annual data. In fact, BTC was up 35% in 2015 after suffering a horrific 58% decline in 2014. Similarly, its price increased by 95% in 2019 and decreased by 73% in 2018. .

However, there is a difference between the bear market of 2022 and the market that Bitcoin has experienced in the past. Indeed, it affects not only the cryptocurrency market, but also almost all risky assets in the traditional exchange. Thus, financial markets are developing in a difficult macroeconomic context, characterized by the return of inflation and the risk of recession. Not to mention the tense geopolitical context that exacerbates supply chain issues between Russia and Ukraine.

Given the above arguments, Bitcoin’s stock market history may not be the best predictor of its future price in 2023. Are we headed for $8,000 or Tim Draper’s $250,000? However, for many, it seems unlikely that Bitcoin will go to zero anyway, as it is here to stay.

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