why is it a celebration date for cryptocurrency?

why is it a celebration date for cryptocurrency?

Bogotá — Despite the drop in price, the most enthusiastic about cryptocurrency will remember on May 22 the Bitcoin Pizza Dayconsidered a special date for the development of this business in the world.

Bitcoin Pizza Day was the day on which bitcoin, considered the most popular cryptocurrency in the world, was used for the first time to acquire a physical product, marking the beginning of its irruption in daily operations.

Almost twelve years ago, Laszlo Hanyecz, a programmer from Florida (USA), paid 10,000 bitcoins for two Papa John’s pizzas or almost US$41 at the time, when the cryptocurrency was barely a few months old since the creation of its protocol by the enigmatic Satoshi Nakamoto.

Despite the notable drop in the current price, the gap compared to what you paid back then for pizzas is evident, since at today’s prices they are almost US$298 million.

Hanyecz has stated in some interviews that he does not regret having paid with cryptocurrencies, taking into account the value of these today, so contributed to the development of this business.

For posterity there was even the conversation through which the operation was completed in the Bitcoin Forum with Jeremy Sturdivant, who served as the recipient of those bitcoins that were finally traded for two pizzas.

Earlier this week, 35 fintech and cryptocurrency specialists from Finder concluded that the world’s most popular cryptocurrency could hit a new high this year amid political uncertainty and inflation, but his future remains uncertain.

According to that panel, bitcoin would peak at $81,680 on average in 2022 before falling to $65,185 by the end of the year.

However, bitcoin is moving further and further away from those prices sinking to its 2022 lows, down even below $30,000, marking a bad week overall for major cryptocurrencies.

In a scenario of rising rates to contain inflation, investors have been victims of the volatility derived from the uncertainty generated by the current economic outlook that has resulted after the pandemic.

Proof of this is the performance of the index Crypto Fear and Greedwhich offers a rating from 0 to 100 on the market sentiment of cryptocurrencies, as explained by Binance Academy.

This week the index marked its lowest levels so far this year, standing at 10, which it qualifies as extreme fearin line with the low scores obtained by other cryptocurrencies such as Dogecoin, Luna, among others.

A study released in October 2021 by the National Bureau of Economic Research (NBER) indicated that the 10,000 largest investors in these cryptocurrencies own around 5 million bitcoins.

“Bitcoin mining capacity is highly concentrated and has been for the last five years. The top 10% of miners control 90% and only 0.1% (about 50 miners) control about 50% of the mining capacity.

Not all investors maintain an active strategy and in fact some analysts point out that 65% of the bitcoin supply has not been touched in over a year.

According to information shared by the Buddha platform, “The amount of bitcoins that the holders in the short term compared to the long term is at very low levels”which has historically preceded bullish movements.

While “the total amount of bitcoins available in exchanges it is at a minimum, only comparable to 2018″.


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