Back in May, 2010, the bitcoin-buzz was merely a shadow of its current self.
That being said a hungry developer bought two pizzas using 10,000 units of this little known digital currency.
Ten thousand coins were worth about $40 (£30) in May, 2010 and an anonymous user agreed to buy the pizza for him. Even then, the buyer of the pizza was getting a good deal out of it…they only paid $25 (£19) for the two.
Seven years later and bitcoin has gone nuclear. Today, 10,000 bitcoins are worth almost $60 million (£45.7 million).
Its price continues to tear upward, with each bitcoin worth $5,798 (£4,416) — a little shy of its all-time-high of $6,112 (£4,655) reached last week.
Only a year ago, it was trading at just $443 (£341), after falling from what was then seen as the unprecedented highs of about $1,100 (£847) in late 2013.
CryptoCompare founder Charles Hayter said in an email:
“The Japanese have caught the Bitcoin bug and inefficiencies across markets are being exposed. Irrational exuberance is taking hold as the Japanese stumble over each other to enter the Bitcoin market and drag up international prices.”
Bitcoin has boomed since 2010, with the buzz hard to escape.
Laszlo Hanyecz’s purchase of two pizzas from a Papa John’s from another bitcoin enthusiast is believed to be the first “real-world” transaction payment in bitcoin.
Hanyecz posted on the forum Bitcoin Talk on May 22, 2010, writing:
“I’ll pay 10,000 bitcoins for a couple of pizzas.. like maybe 2 large ones so I have some left over for the next day. I like having left over pizza to nibble on later. You can make the pizza yourself and bring it to my house or order it for me from a delivery place, but what I’m aiming for is getting food delivered in exchange for bitcoins where I don’t have to order or prepare it myself, kind of like ordering a ‘breakfast platter’ at a hotel or something, they just bring you something to eat and you’re happy!
I like things like onions, peppers, sausage, mushrooms, tomatoes, pepperoni, etc.. just standard stuff no weird fish topping or anything like that. I also like regular cheese pizzas which may be cheaper to prepare or otherwise acquire.
If you’re interested please let me know and we can work out a deal.”
The date is a marked on an annual basis by bitcoin users as “Bitcoin Pizza Day.”
The #Bitcoin pizza is worth $58,605,275 today. (-1% from yesterday)
— Bitcoin Pizza (@bitcoin_pizza) October 28, 2017
Hanyecz told The New York Times in 2013:
“It wasn’t like Bitcoins had any value back then, so the idea of trading them for a pizza was incredibly cool. No one knew it was going to get so big.”
Most recently, Juilian Assange has weighed in with comments about his fortunate investment in bitcoin.
In 2010, following the release of sensitive government documents related to wars in Afghanistan and Iraq, WikiLeaks funding was blocked, notably by John McCain and Joe Lieberman who led a bipartisan attempt to cut off ‘traditional’ payment systems.
Assange’s Wikileaks had payment routes such as Visa, MasterCard, Payal, AmEx and Mooneybookers blocked, forcing them to invest in bitcoin, seven years ago. This investment turned out to be a master-move, and Wikileaks saw their investment into the blockchain returned to the tune of 50000%…!
My deepest thanks to the US government, Senator McCain and Senator Lieberman for pushing Visa, MasterCard, Payal, AmEx, Mooneybookers, et al, into erecting an illegal banking blockade against @WikiLeaks starting in 2010. It caused us to invest in Bitcoin — with > 50000% return. pic.twitter.com/9i8D69yxLC
— Julian Assange 🔹 (@JulianAssange) October 14, 2017
CoinTelegraph concludes that as Wikileaks is consistently on the forefront of revealing government corruption and political manipulation, and the fact that Assange has lived as a fugitive in the Ecuadorian Embassy in London since 2012, it’s no wonder he is not particularly fond of pro-government fiat currencies. Wikileaks and Assange represent the sort of non-governmental, decentralized control that Bitcoin is founded upon.
It’s not just Bitcoin that’s booming!
Other crypto-currencies are also riding the bitcoin wave. As confident increases in the global market, new coins are also enjoying huge success over the past year. Notably, Ethereum and Dash are the two of the biggest movers.
Ethereum was trading at $10 at the start of this year and has seen it’s price soar to around $300, similar can be said for Dash, starting the year at $11 and is currently sitting at around $280.
The cryptocurrency boom and their increasingly intricate underlying technology is becoming too big for central banks to ignore. Bitcoin and its numerous counterparts pose a direct threat to the established fiat banking money system by essentially avoiding it completely.
Money, as we know it, depends on federal authority for credibility, with central banks typically managing its price and quantity. Cryptocurrencies manage to circumvent all that nonsense and instead rely on their supposedly unhackable technology to guarantee value, amount and a level of stability.
Getting involved in the crpto-world is easier than you might think! Just a few clicks of a mouse and some standard verification is all it takes to get involved and start buying bitcoin.
There are many services out there that can get you set-up in no time at all. Check out CoinBase.com, one of the markets leading online databases, who will help you with everything you need to know!