Bitcoin's Path To $1 Million: Why This Bubble Is Not Bursting Anytime Soon

intheflesh (25)in #bitcoin • 7 years ago

Since Bitcoin's first commercial "pizza transaction" in 2010, the price has skyrocketed by over 500,000,000%.

So, it's natural for many people to believe that Bitcoin is a massive bubble.

People may actually be paying for their pizzas with Bitcoin once again, but this time using extremely small portions of their Bitcoins.

Lots of people have heard of Bitcoin, lots of people have an opinion on Bitcoin, but surprisingly, not that many people own Bitcoin.

I've never witnessed a bubble that had a relatively low participation rate, was largely decoupled from Wall Street, and had so many people convinced that it was a bubble.

Ever since a Florida programmer made the first commercial transaction using Bitcoin (COIN), when he traded 10,000 Bitcoins for 2 pizzas, the digital currency was launched. On May 18th, 2010, Laszlo Hanyecz posted on a Bitcoin forum that he would pay 10,000 BTCs for “a couple of pizzas, like 2 large ones so he would have some left over for the next day.” Well, as Laszlo’s pizza-related dreams came true that evening, an actual value for Bitcoin was born. A value of just $0.0025, or one quarter of 1 cent. However, as news spread around the internet of the now infamous pizza purchase, Bitcoin was soon officially trading at $0.06, an impressive 2,300% increase in just a few short weeks.

Fast forward to today’s world, in which Bitcoin is currently trading at around $13,500 and those 10,000 Bitcoins from 2010 used to purchase two large pizzas are now worth a whopping $135 million. Bitcoin itself is up a mind-numbing 540,000,000% since its first implemented purchase.

Bitcoin All-Time Logarithmic Chart