The Most Expensive Pizza and the Cheapest Apple

How much would you pay for a pizza? If it´s about buying a pizza in your neighbourhood, the answer might be simple. You know the prices in your favorite restaurant, so you obviously won´t overpay. When you go on holiday (especially to a foreign country), the answer might be a bit more difficult. Still, you surely will not pay a totally unrealistic price. But what if you should pay in something else than money? How much tulip bulbs, baseball cards, hamburgers etc. would you pay for a pizza?

Now you need to think more right? The answer will get even more difficult when it comes to assets with rapidly changing values. Like shares, or bitcoin…

The Most Expensive Pizza

You might already heard the story of the first bitcoin transaction, that has happened almost exactly 7 years ago on 22nd May 2010.

Laszlo Hanyecz, a programmer from Florida has posted an offer that he is willing to pay 10,000 bitcoins for two large pizzas from Papa John´s. ¨I´ll pay 10,000 bitcoins for a couple of pizzas.. like maybe 2 large ones so I have some left over for the next day¨ – he wrote on bitcointalk forum.

A British man has accepted his offer and ordered the pizzas for him for the bitcoins. That time 10,000 bitcoins worth around $41, so even he had a nice profit as he has paid $25 for the pizzas. Let´s hope he kept those bitcoins as now they worth over $20 million!

Totally worth it!

Was Hanyecz crazy for paying 10,000 bitcoins for two pizzas? Considering the current value, it´s easy to say yes. Even in 2010 he has paid over 50% more for the pizzas if you convert the value into USD. Nevertheless for him those bitcoins worth almost nothing. He told the New York times years later: ¨It wasn like bitcoins had any value back then, so the idea of trading them for pizza was incredibly cool¨.

 

The Cheapest Apple

Considering current values, some might pay too much bitcoins for two pizzas. But there are people who get way less for their Apple. Like Ronald Wayne, who was the co-founder of Apple Computer (now Apple Inc.) and after a short while has sold his shares for $800. Now that 10% stake would have been worth over $80 billion. With a ¨B¨…

Ronald Wayne – source: nydailynews.com

Later on, Wayne has stated that (similarly to Hanyecz) he has no regrets. Selling the shares for $800 was the “best decision with the information available to me at the time”. Maybe it´s only me, but I would have more difficulty with dealing similar situations in such a calm manner…

Of course there are not just cheap apples. I’ve made the below picture in China. The price of the 9, nicely wrapped pieces is CNY 1,314, which is around EUR 170. When we asked why, they said it’s a special import from Japan. Enjoy…

These are just apples!

 

There must be endless number of similar stories out there, even if the money concerned is not as big as the two above examples. Have you ever thrown away a baseball card that today would worth a small fortune? Have you sold an item you inherited without knowing its real value?

Of course it works the other way around as well. Have you bought some random internet stocks on the top of the dotcom bubble? How many people have made crazy decisions during the 17th century tulip mania… Have you ever married someone who got away with a big amount of money after a nasty divorce…? 🙂

We all make stupid financial decisions. The biggest difficulty is that they all seem perfectly reasonable at the time we make them…

 

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7 Comments

  1. Mustard Seed Money May 25, 2017
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