Friday, October 20, 2017

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Bitcoin Minute

The Bitcoin Minute is produced by the World Bitcoin Network, a news channel dedicated entirely to Bitcoin.

World Bitcoin Network

This Papa John's pizza might look like an ordinary delivery, but it seems likely to go down in history as the most expensive food of all time. And the date it was purchased, May 22nd 2010 could well mark the first shot fired in a major revolution in the history of economics.
This is because this pizza was bought for bitcoins, and it is likely the first ever transaction ever made with the fledgling currency, which came to life in 2009.
Further when programmer Laszlo Hanyecz ordered the pizza in Jacksonville, Florida, three years ago, he purchased it with 10,000 bitcoins. At today's exchange rate of approximately 120 dollars to one bitcoin that amounts to a current day price for the pizza of 1 million 2 hundred thousand dollars.
For historians, Laszlo's initial exchange can still be seen today on the bitcoin forum. He wrote:
"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."
It seems impossible to imagine these days, as prices for bitcoins have multiplied in value over 50 thousand times. This was recently highlighted by the bitcoin purchase of a Porsche in Austin Texas. The price here, just 300 bitcoins.
Clearly, this leads us to a greater question. How far will the bitcoins value soar. An answer that no one knows. Yet some pundits suggest that bitcoins could swarm into the $60 trillion dollar international space for transactional currency.
Indeed if bitcoin even grabs a 1% share of this market, its value can be calculated to climb to a phenomenal 100 thousand dollars per coin. At that point, the pizza would be worth exactly 1 billion dollars. Too much? Its not clear. Laszlo ate well that night, and launched the once abstract coin into the world for the first time as a currency.

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World Bitcoin Network

With the Forbes online article this week interviewing Rob McEwen, once again we are given a glimpse at bitcoin's potential to unseat gold. The head of McEwen Mining and previous owner of Goldcorp, worth well over 30 billion, conceded that "it's a mistake to write off this bitcoin as a bubble or fad.." Other pundits have gone further suggesting that bitcoin is "gold on steroids."
Indeed, Gold, the ancient currency was once prized for how easy it was to recognize and transport. But in this global economy, the weight of gold is now its greatest burden, like cattle its predecessor, gold is a nightmare to when it comes to sending it over the internet. Further, modern counterfeiters have challenged the most pristine aspect of gold, with many recent forgeries being crafted with Tungsten, an element with the same density as gold. In a recent case in New York, hundreds of thousand of dollars were lost to complex gold forgery.
Bitcoin, like Gold, has achieved its lofty comparison mostly by its imposed scarcity, gold's greatest feature. Indeed by setting a hard limit of bitcoins at 21 million, it is seemingly even more scarce. While its possible to subdivide each bitcoin into millions of units called Satoshi's to maintain its fluidity, once the limit is reached no new coins will ever be created.
Indeed as gold prices drop in recent months, one can only wonder if bitcoin, Cyprus and the internet have anything to do with the fall. And others have suggested that as bitcoin's price explodes ever higher in value, whether we are seeing the beginning of the world's first digital gold rush.
That's it for the bitcoin minute. Send your suggestions and comments to
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And we welcome all video commentary, for or against bitcoin.

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