By Savannah Smith  |  05-23-2017   News
Photo credit: Igor Stevanovic | Dreamstime.com

Monday not only marks the seven-year anniversary of Bitcoin Pizza Day when bitcoin as cryptocurrency was started but it also witnesses the record-breaking price of bitcoin reaching nearly $2,200.

CoinDesk data shows bitcoin was even trading for as high as $2,251.61 midday Monday, setting a fresh record high, after first passing through the $2,000 barrier over the weekend.

On this day, seven years ago a programmer named Laszlo Hanyecz spent 10,000 bitcoin on two Papa John’s pizzas. Hanyecz asked a fellow enthusiast on a bitcoin forum to accept 10,000 bitcoin for two boxes of pizza. He believed at that time that the coins he had “mimed” on his computers were estimated to be worth around 0.003 cents each.

Bitcoin mining is complex involving mathematical solution with the miner being rewarded in bitcoin, the same process for which Hanyecz got his initial coins. But the cryptocurrency has invited many questions and doubts from skeptics as it continues to be associated with criminal activity. It has been rallying, however, from the bad reputation.

As enthusiasts celebrate the Bitcoin Pizza Day, they are stressing that what was worth $30 of Hanyecz pizzas seven years ago would now cost $22.5 million at current bitcoin prices. They also calculate that if one bought $100 of bitcoin at the 0.003 cent price on May 22, 2010, would now be sitting on around $75 million.

Several factors have been driving the astounding rally including a recently passed legislation in Japan that allows retailers to begin accepting bitcoin as a legal currency. It has boosted trading in yen, which presently accounts for over 40 percent of all bitcoin trade. Other contributing factors include global political uncertainty which has driven demand for bitcoin as a safe haven asset.

There have been reassurances lately over a persistent point of contention within the bitcoin community about the future of the underlying technology behind bitcoin known as the blockchain. There were serious fears expressed before about the creation of two separate cryptocurrencies. The worries were eased with an alternative, more acceptable option now being floated

Source:

http://www.cnbc.com/2017/05/22/bitcoin-price-hits-fresh-record-high-above-2100.html

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