I guess you know that story when someone bought two pizzas for around (or precisely) 10,000 Bitcoin, right?
In short, a developer from Florida decided to buy pizza for his bitcoins, so he asked in Bitcointalk who was ready for that in exchange for 10,000 bitcoins. Another guy from the UK took him for serious and ordered two pizzas for developer’s name, paid 25 bucks and got his 10,000 bitcoins.
10,000 in Bitcoin was the equivalent of around $30 at that time, but today…it would be worth over $45 million, and I don’t know their price at the moment of your reading.
So, that was the mentality in the early days of Bitcoin. It is very representative – people could not know the next moves in the cryptocurrency market.
Now you may think that the UK guy is a multimillionaire today, right? But I don’t really think so. He might be a millionaire indeed, but not a multimillionaire. I’m sure that he decided to cash out years ago.
Check this Bitcoin chart:
Let’s say that Bitcoin suddenly peaked at over $1100…our hero would surely be amazed by this great opportunity to cash out now and become a millionaire. He might have waited for the moment when Bitcoin hits $2000 or even $3000. Well, the next move was a sharp drop to $500-600 – who would resist to that drop? This might be the moment of his cash out, or maybe he waited a bit and hoped for more, but eventually the price was bearish for months – only after 3 years the price reached that regional peak again!
Believe me, during those three years, most of the early Bitcoin investors sold their share in exchange for fiat money. There might be some Bitcoin multimillionaires from those times, but not so many.
Who would invest $10,000 in a virtual coin that promises nothing special except for isolated crypto enthusiasts? It can be only an already wealthy guy, who simply bets on something – makes the investment and forgets about it.
So, many people and serious investors showed interest in Bitcoin only after that sharp uptrend that went beyond $1000. This is where they started to invest. As for 2010 investors – most of them cashed out because of the fear to lose their stake.
There are only few entities that could anticipate what was going to happen. This may be big insiders, who had ties with the banking industry, different ventures, exchanges, etc. They knew what was going to happen, because the media doesn’t focus on something just so, for any reason. Bitcoin may be part of a big story, and many high ranked people are involved with it.