2022 hasn’t been the best year for crypto. The digital asset market has plummeted over the past year after experiencing steep increases in 2020 and 2021. Bitcoin rose to previously unseen levels during these two years, only to fall quite hard and rapidly since the beginning of 2022. This has prompted several investors to sell all their BTC before the values could drop further, afraid they were bound to lose their capital if they waited even more. Checking the Bitcoin price today, it’s plain to notice that it is starkly different compared to its values from the previous year. However, this hasn’t deterred some other traders, who have continued to buy BTC Bitcoin and continue their transactions even through this trying time.
Their persistence is motivated by the belief that BTC levels are bound to bounce back sooner or later. This isn’t the first time that the coin has become devalued only to return and reach new heights. With this in mind, investors are eagerly waiting for better news, with many believing that the next year is likely to deliver.
And with 2023 right around the corner, it’s time to wrap up the year and look into how bitcoin has evolved over 2022.
Lightning Network
The Lightning Network is BTC’s scaling protocol. In 2022, this network has experienced significant development. It allows for the completion of instant transactions, eliminating the need for additional confirmations. Completely decentralized, it improves the coin’s scalability while at the same time leveraging security and settlement assurances. Bitcoin’s base layer has remained the same, offering an increasing degree of stability for the blockchain network. The publicly visible liquidity capacity rose from 1,05 to nearly 5,000 BTC in 2022, while the number of channels rose by 80%. Nodes also increased by almost 90%, but the figures slowed down slightly over the year’s second half.
Cheap payments, generally below 1 US cent, became widespread in 2022 as a way to exchange P2P value over the network. Many wallets were launched, improved trading tools were introduced, and more educational resources were presented.
El Salvador
El Salvador has become the first country in the world to use Bitcoin as legal tender. The move has experienced mixed results. While in the beginning, it was touted by some as a revolutionary move, the currency’s plummeting values have led many to believe that the investment won’t pay off. Tourists have started visiting the country, moved in by the promise of cyber currency trading, and in October, the government created the world’s first Bitcoin Embassy. As a chamber of commerce, this financial body is headed by a BTC miner and investor turned diplomat.
The following month, in November, El Salvador created a Bitcoin Office within that of the president. This office aims to facilitate access and offer information to worldwide investors. Since El Salvador placed Bitcoin on the same level as local fiat money, traders have been flocking to try it, creating the need for such an office. Moreover, it can be used as a means to establish a Salvadoran template for other nations looking to join the ranks and take similar steps.
Optimal operations
Perhaps the most outstanding achievement Bitcoin saw in 2022 is the coin itself. Over the past twelve months, the blockchain system continued to operate well, with one block being completed, on average, every 10 minutes. Coin issuances are still adhering to the white paper issuances released all the way back in 2008. The blockchain recorded no emergency restarts or chain splits and no protocol-level hacks.
Over 2022, Bitcoin delivered another year of 100% uptime. It remained completely decentralized and censorship-resistant, meaning it could be accessed from any corner of the world. This is quite an impressive achievement considering all the year had in store for the coin. It’s pretty difficult to operate at the same level when navigating a dire crypto winter. Nevertheless, billions of dollars worth of BTC were traded daily on the blockchain.
It’s worth remembering that crypto has achieved this without any traditional foundation, direct employees or venture capitalists. These are all aspects that other assets benefit from. Regardless, crypto, in general, and Bitcoin in particular, has had one of the most astronomic rises ever seen in the trading market since its introduction. Ongoing developments are focused on the predictability and reliability BTC has to offer.
The coin is well-recognized as being more stable than the altcoin alternatives, so although transactions might take a little longer to complete than in the case of other cryptos, this is a marker of the security of the network. Delivering an optimal experience for investors is hugely important, especially since theft can be particularly destructive when it occurs on the blockchain. While the fact the network cannot be altered after a task is completed is good news when it concerns avoiding fraud, it also means that should crypto be stolen, it will typically remain stolen forever.
Gridless computing
Mining is, in simple terms, the process through which new Bitcoin is launched on the blockchain. The process is known for using a significant amount of computational power, a reality that has created discourse regarding the sustainability of the coins and the use of natural resources. Indeed, to become a miner, you’ll need to purchase special apparatus, as a regular computer simply won’t do.
In some areas, this can be quite a challenge, particularly in rural areas with no immediate access to a reliable energy source. Moreover, with discussions on green practices and environmentalism being on the rise, there has been more and more discussion regarding the creation of energy sources that are environmentally friendly, renewable and affordable at the same time.
Bitcoin mining has been shown to help in this regard. In 2022, a Kenyan village was powered by securing a Bitcoin network by using excess hydropower. In addition, 2,000 people, so approximately 500 families, saw their rates lowered from $10 to $4 per month.
While Bitcoin certainly hasn’t seen its best year in 2022, there were indeed many positive aspects as well. In 2023 investors expect prices to rise, but even if the climb isn’t as high as expected, most are unlikely to abandon ship, as they have complete faith and are sure Bitcoin is a promising venture.
