Bitcoin price has seen serious volatility since Elon Musk announced on Twitter that his company, Tesla, would accept Bitcoin as payment.
Almost immediately, the social media platform was filled with screenshots of these orders, but those eager buyers willing to exchange their coins could live with tremendous regrets. Here’s how two delicious pizzas fit into this puzzle, and why even something more valuable like a Tesla can still end up being a bad buy.
How outputting BTC can be a huge mistake for a Tesla
This week, Elon Musk, CEO and founder of Tesla and SpaceX, revealed that the eco-friendly automaker had enabled the company’s website to accept Bitcoin as payment for the vehicles on offer.
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The internet was full of news and the price per coin rose sharply at first. A rejection of the resistance rocked the market for a short time – before this week’s historic options expired.
A Tesla is the new pizza
In 10 years time, people will be amazed that someone has spent a whole #Bitcoin on a Tesla
– Max Keizer (@maxkeiser) March 25, 2021
But as crypto bull Max Keizer points out ten years from now, people will be shocked that someone was stupid enough to spend a whole bitcoin on a Tesla.
The comment is not intended as an insult to someone who takes the plunge and buys a Tesla with its coins, but is a reality that, in retrospect, could make the purchase regrettable. Returning a Tesla is also a catch for those paying in BTC.
Eating pizza once was unfortunate, but Bitcoin couldn’t be without it
On May 22, 2010, Laszlo Hanyecz announced via the BitcoinTalk forum that he had successfully bought two pizzas for a total of 10,000 BTC.
At the time, the coins were worthless by all standards and weren’t even traded for a cent each. He got a lot in his mind and made history by completing the first documented transaction for goods with Bitcoin.
Laszlo Hanyeczcspent 10,000 BTC on pizza, now worth around half a billion USD | Source: BTCUSD on TradingView.com
Today, those 10,000 BTC are worth half a billion dollars, making these two pizzas some of the most unfortunate pizzas ever. Even someone who got a food-borne disease off a cake would have less lasting effects than wondering what could have been.
A Tesla now costs almost a full coin – which is much more valuable than two pizzas. Given how quickly cars depreciate in value the moment they are driven out of the parking lot and how far Bitcoin could ultimately rise in the years to come, buying a Tesla with BTC could be as unfortunate as Laszlo’s transaction in im Year 2010.
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Ten years from now, people might be appalled by the idea of spending a full coin on a car. The main difference between these people and Laszlo is that he is a pioneer who will forever be synonymous with the history of cryptocurrency and possibly a major factor in its evolution into what it is today.
Who knows, without his proof-of-concept purchase of two pizzas, the technology might not have found widespread acceptance. And while buying a Tesla is cool, there’s nothing more recognizable than a delicious pizza.
Featured image from Deposit Photos, Charts from TradingView.com