Why two pizzas selling for 10,000 Bitcoin is significant

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How many times has one heard something like the following:

“If only I had listened to my friend back in 2013 and bought Bitcoin…”

Or

“I heard about Bitcoin back in 2011 but never thought anything of it…”

“What people don’t understand” is the significance of why someone sold two pizzas in 2010 for 10,000 Bitcoin. 10,000 Bitcoin is worth over US$120 million as of October 2020. A naïve takeaway from this event is that one should simply HODL, which is true to some extent. However more interesting and disruptive reasons exist that should be discussed.

👇A thread on venture capital and Bitcoin startups. There’s nuance to why founders who understand Bitcoin should avoid VC the way it’s structured today.

— Jack C. Liu (@liujackc) July 7, 2020

A tweet from the above thread highlights why prioritizing accumulation of coins is logical with a fixed supply and low barriers to entry of competitors in the economy. The thread correctly points out that many Bitcoin (BSV) businesses seem to have no interest in obtaining more coins while their VC funds keep them afloat. As Liu highlights, ‘delaying profitability’ in a Bitcoin economy does not make sense.

Furthermore, not only will businesses foregoing earning satoshis not benefit from potential appreciation in value, but they will be disproportionally at a disadvantage when competing with companies who did earn satoshis during that time.

For example, if company A generates revenue while operating at a loss in purely Bitcoin vs. company B who is well-funded upfront in fiat but with no Bitcoin revenue generated (or fiat) if the price rises then company A suddenly becomes profitable and well-capitalized.

A fair criticism is that earning and hoarding coins on the balance sheet is a bad idea if the company is dependent on a price rise to be profitable. However, with more ways emerging to spend those coins earned by the day, coupled with a presumed lower time preference this strategy looks like a very smart one and would have netted our friend who sold pizzas a modest 2,926,829% return.

This is a reminder that 18 months ago 1 BSV was worth around $60 and has risen nearly three times that as of Oct. 2020.

Any merchant or builder who earned BSV last spring from commerce like mug cup sales or writing Yours articles now has triple the purchasing power today.

Source: Coinmarketcap

The fact of the matter is that early adopters and supporters of the Bitcoin network are disproportionately rewarded for their contributions.

Just ask Satoshi who has somewhere close to 1 million coins untouched, worth billions of USD a decade later.

Just ask the father / grandfather who mined in 2011 and was able to retire 10 years early to spend more time with his family.

Just ask another family man who bought their first coins in 2010 and can now re-invest in Bitcoin SV businesses now that he himself is set for the rest of his and his families’ life.

Many others exist who have secured their families’ wealth because they took a gamble on potentially the most disruptive technology in human history.

Despite this strategy that has proven to pay dividends in much more ways than just profit, Bitcoin SV ‘proponents’ still criticize HODL’ing, charging for their services, extracting short-term profit and claim that the revenue earned now is not enough.

Imagine foregoing earning Bitcoin now.