Reflecting On Bitcoin Pizza Day: How Was Bitcoin Designed And How Is Bitcoin Doing

By BitcoinGordon | BitcoinGordon | 23 May 2021


Happy May 22, 2021, Bitcoin Pizza Day crypto universe!

These past weeks have been weeks of intentional divisiveness in the cryptocurrency world. We've all seen it, we've all felt it. Many of us living and breathing the market perhaps have felt it more than others. We have seen unquestionable deliberate market manipulation, shaking thousands of permanent liquidations from the market, sending at least hundreds home to silently lick their wounds and figure out how to tell their wives, husbands, and parents that the savings account or college fund is gone. Personally, I don't find that kind of market manipulation funny. And, just a note to those who are swept into the current from the outside looking in, buying up a chain of meme-coin cartoons as if they are the world's store of value, if it is the maniacal billionaire, the U.N., a sudden splurge of media and the Pope all messaging the same thing about what is good or bad in crypto, you best believe you are on the wrong side of the argument, thus the wrong side of history.

I have long been a supporter of those with contrarion, similar, and partly opposing views, offering balance, filling in blanks, widening perspective to something I believe is more accurate. The past few weeks have been times that strengthen camps, but not necessarily in a good way. People have been trained to believe what they think they know measured in what they are told to hate about the other guy. The warning there, is that talking points often are no longer facts, but rather propaganda. You've been warned.

So, many years ago, the first documented successful real world financial transaction occurred using Bitcoin to purchase 2 Papa John's pizzas, now known to be the most expensive pizzas in the history of the world, with the rise of Bitcoin's value, or more accurately the drop in the value of fiat, what originally cost $41 would have been over-payment of more than $300 million. Ouch. From what I hear, Laszlo, the Bitcoin owner, has been handling it well for a while, but I haven't bothered to check recently. Gordon isn't always going to promise to brush up on his research every time he has something to say.

This marked an important defining time in history, and he should be thanked, but also we really should kinda make a permanent BTC-address-based donation to him for creating a valuable landmark, where if the future repeats the past, every year the world will have one more example of how crypto has been the way to go for more than a decade.

When the market began, we had a small group of people who believed in what Bitcoin was, because they believed in what it was designed to do, and saw that it was in fact doing so. This is profound, because Bitcoin was designed to crack a problem in digital decentralized, programmed agreements in value that had not been fully resolved before; the double-spend. There had already been numerous e-money concepts prior to Bitcoin, and it isn't to say that all of them failed in what they did. For instance we still use PayPal today, and one should consider the irony that one of the main founders of PP today is pushing a crypto proponent currently not embraced by PP or general finance, not for the love of the project, rather for his understanding that the future of money is now a new generation who was never taught about money, doesn't understand it, thus can be molded and directed through a new kewl experiment in money that is designed to defy logic and good design.

Perhaps fixing that design is the goal, but meme's and meme-art are the future, and some of that has merit, but not nearly enough to prevent the coming wreckage. The only real issue I have with the monetization of funny memes is the fact that there is so little substance in the economic framework of its isolated world to provide flow of value. Forget store of value; who's focused on earning, and who is focused on buying? It may be boomer, square, old and worn out to think in terms of occupation, discipline, coat-and-tie slaving to work, and I think all of us believe in crypto enough to hope that there is promise for us to do better for ourselves than our other options.

Looking back on Satoshi's white paper and all that it addresses, we have a decade of trying an experiment under some incredibly harsh conditions. We've been under 3 U.S. presidencies, we've discovered that shilling is a serious thing from McAfee Musk and others, we've seen that Bitcoin comes back after a global pandemic scare, we've seen that China banhammers still hold substance, we've seen a new fool born every minute, hacks, closures, scams, extortion, lost wallets, bad hardware upgrades, and knock on wood through the ICO scares to everything else, Bitcoin is here and at 10X the price from last year's lowest drop. 

We argue the points of the utility of Bitcoin, but also the greater crypto field. Is it fast enough, cheap enough, logically stable enough to warrant replacing any of the traditional banking sector? I think true believers are still on their own in thinking it already conquers those things, but we have arrived at the point where corporates and wealthy investors are realizing it is now seen as a necessary sinking-ship hedge asset class. Bitcoin is becoming a standard for what to have when the writing is on the wall. In fact, those adding it to their company assets are not seeing crypto as the risk, but rather fiat. That is huge, and most of the world has yet to pick up on the signal!

We see more than a decade of something otherwise completely theoretical proving itself to be true. The idea of a network all running code together can handle all of the transacting tasks of an asset without pause or error. Do things ever go bad? Of course, but nothing that is suggesting that the concept of decentralized payment transactions has failed. It has succeeded, and every real argument against Bitcoin now comes to improvement. It must become faster, and it must become reliably cheaper to transact. But, all of the issues surrounding a network in need of improvement prove the fact that we aren't tossing the idea on a quest for something else. Even with hundreds of legitimate projects now on seen, Bitcoin is the strongest presence for which all of the others are compared. Even when China plays it's silly reindeer games and 39% of the network goes down or mining is facing a crackdown, Bitcoin is managing tens of billions of dollars worth of transactions on chain every day.

The instinct for Bitcoin was right. The implementation has been paved with a rocky road that is less about the technology and more about the personalities in our circles. The Roger Ver Craig Wright debates, hard fork hash wars, the ETH Classic acceptance of an old ETH protocol that led to multiple hacks on-chain that still occur with ETC today; all of these are part of the growth, fear, challenge of a growing asset class. Most of us are remaining bullish but always on the search for answers as to what come next.

It is my belief, that today's knock-down to $30K again, is an incredibly strong sign of resilience. Much of this must be miners selling off ahead of a crackdown, and though the percentages are deep, people are reminded in comfort of potential coming ETF's, bank accounts pointing directly to people's crypto wallets, previous pullbacks and the sky-highs that came after a sweetening period of Bitcoin's halvenings.

Pizza Day meant that if you are determined enough, you could now find someone willing to trade goods or services for Bitcoin who wasn't just hiding out on Silk Road. But, now it also provides a marker for us to ask "who else is taking Bitcoin payments?" and it's a valid question. The PayPal marketpalce either is, or soon will be able to transact in Bitcoin via an internal PP swap that occurs at sale. Will Amazon come next? Alibaba I believe has announced.

We are likely going to see more community pressure to accept the top coins and whatever Doge-category coins are the flavor of the day. Institutional investing is going to be pressing up against supply, in my opinion, for the very first time, while volume actually works against scarcity, we will see if ETF's bring the momentum people hope for, or if they provide too much of a bandwidth solution to access Bitcoin without actually owning it.

The future looks both volatile and bright, and who would expect cryptocurrency to be any other way?

And on that ponder, crypto Gordon Freeman... out.

 

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BitcoinGordon
BitcoinGordon

Hi! I'm Gordon Freeman (I hear they made a likeness of me in some video game... totally unrelated... or...).


BitcoinGordon
BitcoinGordon

Welcome! This is my blog for all things crypto, from my day trading and tutorials to general crypto news.

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