Bitcoin Pizza Day – Anniversary
Today, Monday 22nd May 2017 marks the 7th anniversary of the Bitcoin Pizza Day purchase. On this fateful day 7 years ago Laszlo Hanyecz had spent 10,000 bitcoin to buy two Papa John’s pizzas. At the time bitcoin was valued at $41 per bitcoin. To mark this anniversary May 22 is fondly dubbed as Bitcoin Pizza Day. Pizzerias around the globe offer discounts to bitcoin users today to remember Laszlo’s purchase. There is plenty of Pizza to be bought with one bitcoin today.
22nd May 17, also marks the new price breakthrough for Bitcoin. Reaching heady heights of almost $2200, the real cost of Laszlo’s two pizzas today would be $22 million dollars.
Bitcoin Pizza Day – Marks First Transaction with Bitcoin
What was so important about the Bitcoin Pizza Day is that it marked the first ever transaction using Bitcoin as a currency or medium of payment. On this fateful day, Laszlo Hanyecz invited bitcoin enthusiasts and miners to forum at Papa John’s Pizzas. Believing that his mined coins were worth just 0.003 cents he grandly bought 2 pizzas with his mined coins.
Therefore, this 7th anniversary from the Bitcoin Pizza Day is made even more significant as Bitcoin hit the dizzying level of $2185 early this Monday morning.
How is Bitcoin Mined?
It is natural to ask “What is Bitcoin?” and why is so much being said about it? It is quite common to find people who are still scared of investing or storing bitcoin!
In order to mine bitcoin you need to solve a complex math formula. When you do, your reward is a bitcoin. This is in simple terms how you could earn bitcoin. At the time that Laszlo was mining bitcoins, this was easy enough. However, today, on the 7th Bitcoin Pizza Day anniversary, it is not that simple. The formula becomes more and more complicated to solve.
The Bitcoin mine has a total of 21 million bitcoin. A big chunk of around 17 million has already been mined. It is anticipated that the formula is now so complex that it might take 20 years of more for the rest of the unmined bitcoin to be “rewarded”!
So How Can An Average Joe Get Bitcoin?
Today bitcoin can be bought through bitcoin exchanges. Depending on your geographical location you can buy bitcoin through your local exchange. It is recommended that you do your proper due diligence about the exchanges and make sure that they are legitimate.
Since bitcoin is becoming so expensive, you can also buy bitcoin fractions which are called Satoshis!
Bitcoin Satoshis are named after “Satoshi” the alleged inventor of Bitcoin. In truth, no one really knows who invented bitcoin. Most likely it started off in Silicone valley by a number of computer geeks who were all suffering from financial losses after the crashes of 2008! Bitcoin emerged in early 2009.
- Bitcoin was associated with illegal/criminal payments or drug trafficking.
- Some exchanges in the past have disappeared, leaving people with not access to their bitcoin.
What is different today about Bitcoin?
The commemoration of Bitcoin Pizza Day resonate well. The pizzas worth $30 at the time are worth $22 million today. There is much more trader confidence in Bitcoin.
As recently as 1st April 2017, Japan has legalised the bitcoin structure. It has acknowledged Bitcoin as a legal form of payment.
Moreover, Russia, who was dead against Bitcoin to start off with, is looking at possible ways of legitimising bitcoin.
Malta, the small financial haven in the Mediterranean is said to be looking at ways of embracing the blockchain in a sweeping national strategy.
All of this is adding to the reassurance value of bitcoin.
Should I invest in Bitcoin
Although we must clearly state, that this article is an opinion and not investment advice, the fact that just 7 years ago the cost of a pizza could today make you a multi millionaire, sets you wondering.
What is the trend? What does the Bitcoin Pizza Day Anniversary really mean?
There is no question that the dizzying heights that bitcoin prices have risen to in the past six months are totally unprecedented. Bitcoin has passed the proverbial threshold of $2000 on the 20th May and has since risen to $2200 on the Bitcoin Pizza Day anniversary! The growth is suddenly exponential.
The fact that Interpol and the CIA have both found ways of tracking down illegal and criminal payments across the globe with crypto currencies, has been extremely re-assuring.
If you had bought $1000 worth of bitcoin 7 years ago, today you would be looking at $729 million in your bank account.
Will the trend continue?
Well much has to be seen – but if the bitcoin enthusiasts forecasts are to be believed, bitcoin could hit as high as $1 million per bitcoin.
What Would be My Strategic Investment Advice?
There are a few things that I would take into consideration.
- On a very positive note, Bitcoin is not tied to any particular country or currency. It is completely independent. Therefore, any massive political or financial crisis in any country, have only got positive impacts on bitcoin. The more the currencies of countries hurt from lack of confidence, the better the price of bitcoin reacts.
- There are still some security questions and some tech questions surrounding the crypto currency. We do live in a volatile world, and there is no telling what could stall or retrace a price hike.
Therefore, what I would personally do, is the following:
- Invest discreetly into Bitcoin or a cryptocurrency portfolio. Do not dedicate more than 10% of your total investments into bitcoin.
- Wait for the currency price to double. It is likely that you will not have long to wait for that if the current price trend continues.
- Cash in half the portfolio as soon as the price hits double.
- Sit back, relax and let the profits show you the future.
As intimated previously, this article is not to be used as investment advice. It is merely the sentiment and thoughts of the writer. Any decisions that you may take on this article are your responsibility.
Bitcoin could possibly be the currency of the future. It is certainly the currency of today in countries like Japan which account for 40% of bitcoin trade.
There is one thing that is sure – Laszlo Hanyecz made history with his Bitcoin Pizza Day. To-day this has to be the most expensive Pizza to ever hit the Guiness Book of Records in retrospect!