If you bought $100 of bitcoin 7 years ago, you’d be sitting on $75 million now

By News Desk

PHOTO: REUTERS

PHOTO: REUTERS

As the seven year anniversary of the first bitcoin transaction hit, the cryptocurrency also hit a record high trading at $2,251.61 on Monday, reported CNBC.

In simpler words, if seven years ago you bought $100 of bitcoin, they would now be worth $75 million.

On May 22, 2010 a programmer named Laszlo Hanyecz used 10,000 bitcoin to pay for two pizzas. At the time, he believed the coins he had ‘mined’ were worth around 0.003 cents each. The pizzas cost $30 then. However, they would now cost $22.5 million at current bitcoin prices.

Mining bitcoins involves solving a mathematical solution which results in being rewarded in bitcoins.

Bitcoin is a virtual currency that can be moved like money around the world quickly and anonymously without the need for a central authority. The cryptocurrency has doubters as many associate it with criminal activity. However, it has seen a stunning rally. Factors driving the rally include: political uncertainty making bitcoin a safe haven asset and recent legislation in Japan which allows retailers to accept bitcoin as a legal currency.

Bitcoin is also attractive because it is decentralised, meaning it is not aligned within one country and involves no banks.

This story originally appeared on CNBC

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