Stephen Whitelaw answers your CryptoCurrency questions
What and when is “bitcoin pizza day”?
SW: Bitcoin pizza day is celebrated every year on 22 May. On 22 May, 2010 one of the early adopters of bitcoin, a Florida man named Laszlo Hanyecz, made a purchase of two Papa Johns pizzas and used 10,000 bitcoin to buy them. At the time the purchase equated to around $40USD, at the conversion rate today, 10,000 bitcoin is worth around $388Million USD (i.e. about 340 Million euros)! Laszlo is regularly interviewed about this purchase and he consistently says he has ‘no regrets’ – he mined these bitcoin and has no idea that they would increase in value at such a phenomenal rate. The purchase was made when Laszlo posted a message on a cryptography board asking if anyone would buy him two pizzas for 10,000 bitcoin – it was Jeremy Sturdivant, a student in California, that took up the offer and made the Papa John pizza order for him. Sadly Jeremy also lost out and spent all of the 10,000 bitcoin later that year on travelling. This was the world’s first bitcoin payment for real goods. To be kind to Laszlo both the pizzas he received were in fact large ones, so it was not such a bad deal after all!
I’ve heard of Bitcoin Cash, is it the same as bitcoin?
Bitcoin was the first crypto currency, launched back in 2009 and Bitcoin Cash was created on 1 August, 2017 through what is known as a hard fork – this occurs when a group of individuals agree to create a new crypto currency and a new blockchain is created.
Since its inception there have been many improvements made to the original bitcoin and they are often debated at length before they are implemented. Bitcoin has suffered from scaling issues since day one e.g. even today it can only cope with about 7 transactions per second [compare this to the Visa/Mastercard networks which currently process around 1,700 transactions per second]. Bitcoin Cash solved this scaling problem by creating a larger blocksize, bitcoins blocksize is 1Meg and Bitcoin Cash started out life at 8 Meg. [In May 2018 BitCoin Cash expanded its blocksize again raising it to 32 Meg]. The creation of BitCoin Cash was not a friendly time, as techies argued the pros/cons of keeping the blocksize at 1 Meg – this time is now referred to as the blocksize wars.
Both crypto currencies exist independent of each other and bitcoin is relying on something called the ‘Lightning Network to scale – this creates a second layer on top of bitcoin where transaction speeds are near instant and fees are almost zero. It has been predicted that the ‘Lightning Network’ will be able to handle up to 15 million transactions per second, although its adoption has been slow. Meanwhile some Bitcoin Cash supporters have moved over to Bitcoin SV (BSV) – a hard from Bitcoin Cash that initially had a blocksize of 128 Meg and has since expanded this to 2,000 Meg [2 Gig] – just as well the size of our hard disks is on the increase!
Whether you are an interested newcomer or are looking for specific technical help and assistance with anything to do with crypto currency, we are here to help.
Simply send your email to email@example.com and we will publish selected questions and answers in the upcoming editions and online.
It should be noted that neither The Portugal News nor Stephen Whitelaw will provide any financial advice in relation to crypto.
Support The Portugal News
The Portugal News provides, free, independent, honest and unbiased news in print, online, on social media and in emailed newsletters. We support local communities, foreign residents and visitors of all nationalities to Portugal with news and views on all things Portuguese. This takes a dedicated, motivated loyal team. To help us continually improve our services we ask you to consider making a contribution – no matter how small.
Be the first to comment on this article
More in Business
Discover your dream home with Engel & Völkers Portimão
Investing as a resident of Portugal
By Advertiser, In Business – 25 Feb 2022, 13:38
Redmi Note 11 now available in Portugal
The first models of the Redmi Note 11 series are now available in Portugal. The new Redmi Note 11 and 11S are the first on the market, while the Redmi Note 11 Pro and 11 Pro 5G hit stores on 29 March.
By TPN, In Business, Portugal, Company News 03 Mar 2022, 18:05
According to a report by Grande Consumo, in the case of the Redmi Note 11, the 64 gigabyte version will have an RRP of €199.99 and the 128 gigabyte version will have an RRP of €259.99. The Redmi Note 11S, with the 128 gigabyte version, will have a RRP of €299.99. The following month, in March, the Redmi Note 11 Pro, with 128 gigabytes, will…
Portugal retail sales down
Retail sales rose in the Euro Zone and in the European Union (EU) in January, in year-on-year and chain-to-chain comparisons, with Portugal registering the second largest monthly decline (-2.8%), according to Eurostat.
By TPN/Lusa, In Business, Portugal, Economy 05 Mar 2022, 09:06
Compared to January 2021, the volume of sales in retail trade increased by 7.8% in the Euro Zone and 8.3% in the EU, while in comparison with December, it grew by 0.2% and 0.6%, respectively. According to the European Statistical Service, among the Member States, the highest year-on-year increases were observed in Slovenia (32.3%), Poland (19.5%) and…
New, cheaper iPhone to be launched?
The company has already confirmed an Apple Event for March 8 and it is being speculated that it will introduce a new iPhone SE, more affordable than the conventional range.
By TPN, In Business, World 04 Mar 2022, 16:04
The Apple Event promotional video was posted on Twitter by Apple’s vice president of marketing, Greg Joswiak. It only shows a stylized version of the company logo with various colours. According to the rumours that always precede company events, the new iPhone SE will be able to support 5G network. If the more affordable price is confirmed, which could be…
Working with top premium brands
Since 2003, MEGABOX has been providing solutions for bathroom furniture, lighting, kitchens, closets, dressing rooms, among others. To provide the highest level of quality to its clients, MEGABOX not only works with brands of excellence in the European market, but also offers tailor-made products manufactured in its own Carpentry Factory situated in Alcochete.
By Paula Martins, In Business, Company News 04 Mar 2022, 06:54
MEGABOX represents the most prestigious European design brands. In the words of their partners, MEGABOX is the right partner to work with!! SNAIDERO Kitchens “A SNAIDERO kitchen is not only a kitchen, it is a philosophy. Furthermore, a partner working with us has to understand Italian style”, said Andrea Bandera, export manager at SNAIDERO….
TeleTrade: Large Investment Sharks are Gaining Optimism
The sentiment on global markets is still vulnerable as the conflict in Ukraine intensifies.
By Advertiser, In Business 03 Mar 2022, 11:33
However, according to TeleTrade analyst Ilya Frolov (https://www.teletrade.eu/pt), the cost of fuel as well as gold contracts and bond yields are under the primary influence, while stock indexes are relatively quiet. Oil prices soared by almost 15% since the start of outright military moves, reaching the highest values since 2014. The North Sea…
3rd edition of the IPBN Sustainability conference
Last year saw the most extreme heatwave in modern history hit western North America, a…
In Business – 23 Feb 2022, 18:18
Record levels of inflation
CryptoCurrency glossary of terms – Letter ‘E’
Confused by all the cryptocurrency terms out there? Delve into our easy to understand…
By Stephen Whitelaw, In Business – 23 Feb 2022, 12:49
How do I start a business in Portugal?
Starting a business is always a big step in someone’s life, but it can turn out to be an…
By Bruno G. Santos, In Business – 23 Feb 2022, 12:19
Siemens boosting 3,000 strong Portuguese workforce
Fuel market grew 20.99% in January
The fuel market grew by 20.99% year-on-year in January, data that “show a recovery,…
By TPN/Lusa, In Business – 22 Feb 2022, 13:03