This story features Digitalx Ltd. For more info SHARE ANALYSIS: DCC
Is it a revolution or simply another crazy asset-bubble? Bitcoin and peer cryptocurrencies are vying for mainstream acceptance.
-May 22 is ‘Bitcoin Pizza Today’
-While investors are increasingly paying attention, advocates of cryptocurrency contend the best is yet to come
-Big international companies are increasingly legitimising Bitcoin as a payment mechanism by accepting it as a payment method
-Still, the jury remains out on the future of Bitcoin and other cryptos, and many investors and experts remain sceptics
By Ed Kennedy
It is held that the first real-world Bitcoin trade occurred in 2010 when a computer programmer by the name of Laszlo Hanyecz completed a transaction with fellow Bitcoin enthusiast Jeremy Sturdivant. The transaction of BTC10,000 for 2 pizzas from a pizza joint local to Hanyecz is today famous in the crypto world and celebrated every May 22nd as ‘Bitcoin Pizza Today’. The holiday is typical of the fascinating aura that surrounds the rise of crypto. Quirky language and humour is a constant of the crypto scene.
But what’s certainly no laughing matter? Today Bitcoin is challenging gold as a store of value in the minds of many investors, and that the BTC10,000 traded for 2 humble pizzas 10 years ago is worth AU$758,607,497.00 at time of writing. Not only have Bitcoins and other cryptos seen an astounding rise in value over the past decade, but advocates of cryptocurrency contend the best is yet to come.
Leigh Travers on Bitcoin
Leigh Travers has been deeply involved within the Blockchain and digital asset markets over the last seven years while an Executive at DigitalX Ltd ((DCC)). He served on the Board of Australia’s Blockchain industry body for last years, including as Treasurer and Chair of the governance and finance committee. Prior to his involvement in the digital asset market, Leigh spent seven years at a publicly listed wealth management firm.
1. Thanks for your time, Leigh. Bitcoin and a number of other cryptos have been on a big run in 2021. Recalling the last Bitcoin boom and bust of 2017, some may say 2021 is just ‘more of the same’. Do you agree or do you feel it’s different this time?
I think there’s very big differences between the 2017 bull run and 2021. Yes, there are similarities – a peak in interest, whether that’s in price or mainstream news – and also another halving, following what we saw in the last bull run with the halving of Bitcoin supply.
Every four years there is a supply shock to the Bitcoin market. 2017’s run followed the 2016 halving, and 2021 follows the halving in mid 2020. Those periods also coincided with a pretty drastic increase in demand. But this time who is behind the demand is completely different.
In 2017 you had many investment banks saying Bitcoin was a fraud and be avoided – this time they have released price…