Bitcoin pizza 2.0

A little bit of history, as the middle class is about to get crushed by inflation.

In May 2010, Laszlo Hanyecz famously paid 10,000 bitcoins in exchange for two pizzas ($35).

Today, 12 years later, these 10k BTC would be worth $400,000,000.

If you are thinking “too bad for him, I don’t care” or “I’m convinced by Bitcoin already” you can stop reading. Have a sunny day! :)

However, if you are among the many people who say “if I had known at the time, I would have bought 10k BTC myself…” this is for you.

Hindsight is 20/20, but in reality you would NOT have invested in Bitcoin even if you knew about it. You know about Bitcoin now and you are still not investing $35 in it today.

Back then, it was still relatively easy to buy from early adopters, and it’s even easier to get into BTC today.

So, if you missed the $35 opportunity of a lifetime in 2010 why is it that don’t you invest $35 in Bitcoin today?

Short answer: unit bias.

Back in 2010 Bitcoin was worthless because 10k BTC was equivalent to $35. Today, Bitcoin is too expensive because 1 BTC is worth $40k.

But this is the wrong way to look at it.

You can buy a fraction of a BTC. The same way you can buy 5 grams of gold, not necessarily a full 12 kg bar.

1 BTC is divisible in 100,000,000 satoshis.

At current exchange rate, $1 gets you approximately 2,500 sats.

In other words, 1/10th of Laszlo’s pizzas (or a cappuccino) would cost you the same amount (“10k”) as in 2010, but in satoshis instead of full bitcoins!

In 12 years, people may or may not look back and ask incredulously “10k sats were worth $4??!!” No one knows for sure where it’s going. Like no one knew in 2010 (especially not Laszlo).

But those who say today “I would have invested…” do have a 2nd chance.

Today, just like in 2010, a tiny gamble on the future will cost you the price of a couple of pizzas. Gambling a relatively small amount like $35 today is the same as the same dollar amount 12 years ago (it could be argued it’s an even smaller gamble taking into account inflation).

If in 12 years these satoshis are worth zero, will have cost you a few bucks over a decade.

IF — and it’s a big IF — in 12 years 1 satoshi is worth $1, you won’t be saying “if only I knew then”… because you do know today about the potential risk and reward of such a gamble.

As the usual disclaimer goes: Never invest what you can’t afford to lose. But that’s the point: can you afford to lose 2 pizzas today, to save generational wealth for your family tomorrow?

© 2023 Yves Bennaïm