The journey of Bitcoin throughout 2023 has been very interesting. More and more people are interested in investing in this cryptocurrency because of the value it offers.
If you are personally interested in investing in Bitcoin, you need to know what makes it tick and what challenges it faces. Looking back at 2023, we can see how Bitcoin has changed the world of finance.
Bitcoin’s Performance in 2023
Bitcoin wasn’t impressive in 2022, with rough patches here and there. It lost a lot of value due to problems in the crypto world. But in 2023, this cryptocurrency started to shine again. It started the year at around $16.000 and ended it with a blast with a whooping $45.000, an increase of 180%.
This price rise was due to other problems in the finance sector, like the SVB bank crash, which prompted many to develop an interest in cryptocurrency. Another factor for its price rise was the boost it got from BlackRock, a big investment company that applied to launch a Bitcoin ETF.
But Bitcoin also had price drops in 2023. One of the events that caused it to drop in price was the SEC lawsuits against Binance and Coinbase, two of the biggest crypto exchanges. This caused Bitcoin’s value to drop, but it recovered quickly afterward. This proved how strong Bitcoin can be.
Bitcoin vs. Other Assets in 2023
Bitcoin did great in 2023, much better than the year before. From January to December, its value went up by 180%, much more than many other assets in its category.
For example, stock market indices like NASDAQ 100 and S&P 500 and some of the popular stocks like Coinbase and NVIDIA also went up, but not as much as Bitcoin.
Both NVIDIA and Coinbase are linked with Bitcoin since Coinbase is a platform where you can trade Bitcoin, and NVIDIA is a company that produces graphics processors that help mine this cryptocurrency. So if Bitcoin does well, do these companies do well too.
A potential boost in 2024 for Bitcoin could be the incoming halving event in May, where the amount of new Bitcoin that is created gets cut in half. When this happens, Bitcoin prices usually go up.
Is BTC a Safe Bet?
Because Bitcoin did well in 2023, many investors were interested in it. If you plan to invest in this cryptocurrency, you have to be insightful because Bitcoin can be very unpredictable, so even though you have the potential to make a lot of money, you can also lose a lot.
If you are planning to invest in it, you need to be careful and smart. Don’t put all your money in Bitcoin. Try to diversify your investment into different assets. That way you can reduce your risk of losing a lot of money. Invest wisely.
Bitcoin and Business: New FASB rules
Because of the new rules for how to report crypto holdings, Bitcoin investment for businesses is changing. The FASB made new guidelines that start in 2025. These new guides state that businesses have to show the market value of their crypto assets.
The FASB Chair, Richard R. Jones said that the goal of these changes is to give more useful information to the people who invest money in businesses that have cryptocurrency and to make accounting more clear and simple.
This change makes it easier for businesses to report their Bitcoin and other digital assets in their regular financial reports. It also makes businesses more likely to see cryptocurrencies as important parts of their financial plans.
Anticipated Growth and Challenges
Investors are looking forward to the May 2024 halving event, signaling a rise in interest to invest in Bitcoin, since usually when these halving events happen, Bitcoin prices go up.
So investors are hopeful that this rise in prices will happen again, and want to take advantage of this opportunity.
But investing in Bitcoin is not all sunshine and rainbows. Investors should not put all their eggs in one basket, but they should also not miss out on the potential of Bitcoin. Being volatile as it is, Bitcoin can both offer great gains and losses as well.
Conclusion
Bitcoin has evolved a lot, going from a risky gamble to a strong asset in the global economy. This cryptocurrency went through a lot, and at the end of 2023 emerged as a strong contender.
Events such as the SVB bank crash, the SEC lawsuits, and the BlackRock ETF have elevated Bitcoin and made it more popular and relevant. The new FASB rules also show that the crypto world is becoming more mature and easier for businesses to invest in Bitcoin.
Bitcoin is always changing, and those who want to invest in this cryptocurrency should do so knowing what Bitcoin is capable of, and how it can evolve.
