$600 Million Pizzas
About 11 years ago, a programmer went into a pizza shop and purchased cheesy slices of pie with Bitcoin. Known as Bitcoin day, on May 22, 2010, Laszlo Hanyecz purchased two pizzas for 10,000 bitcoins. But what if Hanyecz held on to his Bitcoin instead of spending it?
On Saturday, Bitcoin hit another record as the cryptocurrency jumped to $60,000. Today, Hanyecz’s 10,000 bitcoin purchase would be worth over $600 million.
Over the past year, Bitcoin has skyrocketed over 1000% as major institutions endorse the cryptocurrency. Last month, Tesla purchased $1.5 billion worth of bitcoin, growing its balance sheet by an estimated $1.2 billion. The electric vehicle maker also announced it would start accepting payments in Bitcoin soon. Also, last month, credit card company Mastercard said it would start allowing merchants to accept select cryptocurrencies on its network.
But despite endorsements from major institutions, not everyone is a fan of Bitcoin. Legendary investor Warren Buffet argues the cryptocurrency has “no unique value at all” — saying he has no ambition to own any. And Big Short investor Michael Burry said Bitcoin is a “speculative bubble that poses more risk than opportunity,” predicting a painful crash in the future.
Regardless of your opinion on the future of Bitcoin’s price, it is clear Bitcoin is gaining popularity as more investors learn about cryptocurrencies and blockchain technology. Do you think Bitcoin is here to stay, or do you agree with Michael Burry’s assertion that Bitcoin is a speculative bubble waiting to pop?
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.