Bitcoin and the Misinterpretations of Pizza Day

The Pizza Day Story

The story of Pizza Day is often seen with a sense of regret. The tale is quite well-known: many years ago, Laszlo Hanyecz bought two Papa John’s pizzas, and in exchange, someone received 10,000 BTC. This transaction is hard to believe given the current value of Bitcoin. The story is fascinating for several reasons. It marked the first real-world good or service purchased with Bitcoin and established Bitcoin’s price. Laszlo, a pioneer in mining Bitcoin using GPUs, spent around 100,000 BTC on pizzas, making similar deals multiple times throughout the month.

Daydreams of Becoming a Bitcoin Billionaire

Pizza Day often triggers fantasies of becoming a Bitcoin billionaire through a single smart trade. Many people don’t fantasize about being Laszlo, but they can imagine being the person on the bitcointalk forums offering to buy Bitcoin for a couple of pizzas. These fantasies stem from a fiat mentality, where the value hierarchy is rooted in fiat money. The desire is to be lucky rather than skilled. People would prefer making money without working, versus earning it by providing valuable goods and services.

Bitcoin Regret Stories

Almost everyone has a Bitcoin regret story. Perhaps you heard about Bitcoin back in June 2011 when it ran up to $30 and regret not buying it then. Or maybe you discovered Bitcoin in April 2013 when it reached $266, or later that year in December 2013 when it soared to $1,100. Or perhaps it was in 2017 when it hit $2,500, $5,000, and then $19,000. Anyone who’s heard about Bitcoin at any point in its history has a regret story.

The Challenge of Holding

In these regret stories, we often overlook something. What if we had bought Bitcoin when we first heard about it? How would we have handled the subsequent challenges? Would we have had the strength to hold through the 85% drawdowns in 2011, 2013, 2014, and 2018?

Shattering Your Dreams

Had you sold Laszlo two pizzas for 10,000 BTC in 2010, you probably would have sold them in the new few years. To think otherwise is hubris. Most people back then didn’t understand what Bitcoin was, and there were no educational resources explaining why you should hold.

Building Conviction is Challenging

Developing deep conviction is not easy, and for early adopters, it was especially difficult. Going against conventional wisdom and following your convictions requires a great deal of courage, which many people lack.

Bitcoin Derangement

Studying the early individuals in the Bitcoin space reveals a troubling pattern. Almost every non-technical Bitcoin advocate pre-2013 is now promoting an altcoin. Why have so many early adopters become Bitcoin-deranged?

Level Up Your Convictions

For many, Pizza Day is an opportunity to indulge in time-traveling fantasies where they daydream about being wealthy. This mindset often leads people to explore altcoins, as it stems from the fiat money mentality. Instead, Pizza Day should serve as a reminder that forming conviction is no easy task.

Ten Things You Bought Instead of Bitcoin

1. That sleek, irresistible Apple gadget you just had to have, only to replace it two years later with an even shinier, more irresistible version. 2. Green gems in Clash of Clans, because clearly, the defense of your virtual village was of greater importance than securing your financial future. 3. A college degree with about as much relevance to your current job as a penguin waddling through the Sahara Desert. 4. Litecoin, the less secure, less functional cousin of Bitcoin— because who needs the real deal when you can settle for something much worse? 5. A dating app subscription that merely solidified your status as forever alone. 6. Steam games on sale, eagerly awaiting their debut in your library, wondering when they’ll finally bask in the glow of your screen. 7. That exercise equipment now serving as an exquisite clothes rack, because let’s face it, the allure of the couch is simply too strong to resist. 8. An online class you signed up for, attended just long enough to say “hello” and “goodbye,” then promptly ghosted. 9. The, uh, “adult entertainment” that left you feeling deflated and questioning your life choices the next day. 10. An MLM product from a Facebook friend that you abandoned quicker than you can say “pyramid scheme.”

Final Thoughts

The story of Pizza Day is a powerful lesson about the importance of conviction and understanding the value of what you hold. It also serves as a reminder of the dangers of falling into the trap of rent-seeking fantasies. What are your thoughts on this story? Do you have your own Bitcoin regret story? Share this article with your friends and discuss. Don't forget to sign up for the Daily Briefing, which is everyday at 6pm.