a new standard may have been set on May 18, 2010, when two pizzas with a total price of $25 were purchased using 10,000 Bitcoins instead of cash. Those 10,000 Bitcoins were worth $8.7 million by the end of 2013 as the virtual currency has since soared in value – arguably creating the most one-sided transaction since the island of Manhattan was purchased for $24 in 1626…”
Who Said It: David Harris, Chief Investment Officer and a Managing Director of Rockefeller & Co.
In Context: Writing about the valuations of Internet stocks versus the S&P 500, as well as other technology equities, David Harris suggests that Bitcoin’s current valuation is “merely an anomaly” due to its “relatively miniscule” size and infancy as an asset class. Speculative buying is a trend in the Internet sector, he suggests, and the price action in Bitcoin is “vaguely reminiscent” of the dot-com bubble of 1999, when traditional means of valuing assets through revenues and profits were dispensed in favor of new-era valuation techniques like page views and clicks. As an investor he says it is more relevant to examine the returns from larger, more liquid assets valuations which are apparently within a more normal P/E ratio, showing little evidence of speculation, particularly emerging markets and commodities. (Image source: Rockefeller Financial)
Where we found it:Rockefeller Global Foresight