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What is Bitcoin Pizza?

14 Feb 2023
Minute Read: 4

The "Bitcoin Pizza" is a famous event in the history of cryptocurrencies that took place on May 22nd, 2010. On this day, Laszlo Hanyecz, a programmer from Florida, made the first recorded purchase using Bitcoin. He offered 10,000 Bitcoins (BTC) to anyone who would order him two large pizzas and deliver them to his house.

The order was fulfilled by another Bitcoin enthusiast who ordered the pizzas from a local pizzeria and had them delivered to Hanyecz's house. At the time, 10,000 BTC was worth only a few dollars, so the transaction was considered a minor and insignificant event.

However, the significance of the "Bitcoin Pizza" event has grown over time as the value of Bitcoin has skyrocketed. Today, 10,000 BTC is worth tens of millions of dollars, making it one of the most expensive pizzas ever purchased. The "Bitcoin Pizza" event has become a symbol of the early days of cryptocurrencies and a reminder of the potential for investment and growth that exists within the space.

The "Bitcoin Pizza" event has also been used to demonstrate the volatility of cryptocurrencies. Despite being worth a few dollars at the time, the value of the 10,000 Bitcoins used to purchase the pizzas has grown by several orders of magnitude in just a few years, highlighting the potential for significant gains and losses in the cryptocurrency market.

Simplified Example

The story of "Bitcoin Pizza" can be compared to a milestone moment in someone's life. Just as a person might remember the day they got married, graduated, or bought their first house, the story of the "Bitcoin Pizza" is a memorable event in the history of Bitcoin. On May 22, 2010, someone bought two pizzas for 10,000 Bitcoins, which was a significant amount of money at the time. This event is often cited as the first real-world transaction using Bitcoin, and it's remembered as a key moment in the history of the cryptocurrency. In short, the story of "Bitcoin Pizza" can be thought of as a milestone moment in the history of Bitcoin, similar to a memorable event in someone's life.

Who Invented the Bitcoin Pizza?

Laszlo Hanyecz is a Hungarian-American programmer and early Bitcoin adopter. He is known for his significant contributions to the Bitcoin community, including developing the first GPU mining code for Bitcoin and freely sharing it with the community. He is also known for his advocacy for Bitcoin and his willingness to experiment with the cryptocurrency in its early days.

In May 2010, Hanyecz posted on the BitcoinTalk forum that he was willing to trade 10,000 BTC for two Domino's pizzas. Jercos, a Hungarian Bitcoin user, accepted the offer and delivered the pizzas to Hanyecz's home. This transaction was the first documented purchase of a physical good with Bitcoin and helped to solidify Bitcoin's legitimacy as a currency.

Hanyecz has since continued to be an active member of the Bitcoin community. He has spoken at conferences and events, written articles about Bitcoin, and continued to develop Bitcoin-related software. He is also a popular figure in the Bitcoin community and is often referred to as the "Bitcoin pizza guy."

Examples

Dogecoin NASCAR: In 2014, the Dogecoin community raised 67.8 million Dogecoins (worth about $55,000 at the time) to sponsor NASCAR driver Josh Wise. The Dogecoin logo was featured prominently on Wise's car and uniform, and the sponsorship helped to bring wider attention to the Dogecoin community.

CryptoKitties: CryptoKitties is a blockchain-based game that allows players to buy, sell, and breed digital cats. In 2017, one CryptoKitty sold for 600 ETH, which was worth about $170,000 at the time. The sale of this digital cat drew widespread attention to the world of non-fungible tokens (NFTs) and the potential for blockchain-based assets to have significant value.

Beeple's NFT artwork sale: In 2021, digital artist Beeple sold a digital artwork as an NFT for a record-breaking $69 million. The artwork, titled "Everydays: The First 5000 Days," was sold through Christie's auction house and represents a major milestone in the mainstream adoption and recognition of NFTs as a new form of digital art and investment. This sale is similar to the "Bitcoin pizza" story in that it represents a significant early adoption of a new technology, with the potential for significant value growth in the future.

  • Halving: Halving is a process that occurs in many cryptocurrencies. It refers to the reduction of rewards miners receive when they validate transactions on the blockchain, as per predetermined protocols written into the cryptocurrency's code.

  • Gavin Wood: Gavin Wood is a British computer programmer and blockchain developer best known for his contributions to the Ethereum project.

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