Bitcoin Begins 2023 with its Most Successful Start in History

📈Hello Defions

At the start of 2023, Bitcoin was valued at approximately $16,600 per coin. By February 20th, its value had risen to about $24,700, which translates to a gain of approximately 48%. This is the largest price increase ever recorded at the beginning of a year throughout Bitcoin's 13-year history. Despite the numerous instances, numbering between 400-500, of Bitcoin being declared "dead" over the course of its history, it continues to persist.

To fully comprehend this digital currency landscape, it is imperative to gain an understanding of Bitcoin and its underlying principles, irrespective of the coins you may favor. Being the genesis of the entire ecosystem, Bitcoin's inception on Halloween in 2008, as described in the whitepaper, is the foundation on which all other cryptocurrencies have been built. Acquiring knowledge of these fundamentals is essential for staying informed and maintaining an edge in this dynamic industry.

While it is difficult to make precise predictions about the inflation levels of the United States Dollar, which serves as the world's reserve currency, Bitcoin offers a clear advantage in terms of predictability. Unlike the dollar, we can accurately anticipate Bitcoin's inflation trajectory all the way up to the point when the last coin is mined in 2140. This long-term perspective provides a roadmap for what to expect and offers transparency regarding the number of coins that are held by long-term investors, known as "hodlers," and those available for trading on open markets.

Every four years, the Bitcoin community eagerly anticipates a significant event known as "the halvening," during which the supply of newly minted coins released to the public is reduced by 50%. This event occurs on schedule, like clockwork, every four years, with the most recent one having occurred in May 2020. Currently, the mining reward for each block is 6.25 BTC, which is expected to be cut in half to 3.125 BTC around April or May of 2024. By 2040, 0.1953125 will be mined every ten minutes, with 98.80% of the total 21 million Bitcoins having already been mined. However, the mining process will continue for another century to extract the remaining 0.2% of the total supply. It's essential to take a moment and re-read this paragraph to fully comprehend the implications of the halving and Bitcoin's finite supply

Over the last decade, Bitcoin has transformed from a virtually worthless asset to a highly valued one, with its price soaring to nearly $70,000 and currently hovering around $25,000. This impressive price rise has occurred despite the fact that we have yet to reach the extreme limits of Bitcoin's limited supply. Given that Bitcoin has survived four cycles of market booms and busts, it's a safe bet that it will continue to thrive for many years to come.

As the supply of Bitcoin truly diminishes in the upcoming cycles, we will witness the compounding effects of its scarcity on price discovery. The question is whether you will be a passive spectator or an active participant in this technological and monetary advancement that promises to be as transformative as the inventions of Edison, Ford, and other giants of the past.

At Defion Labs, we believe that you owe it not only to yourself but to future generations of your family to learn as much as you can about this ever-evolving and advancing ecosystem. We are committed to being your trusted guide on this journey and will continue to provide valuable content and information. Join us every Thursday for our weekly podcast, where we can interact and explore the exciting possibilities of this game-changing asset.

👋Defion Labs

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