No wonder those two pizzas sound like a miracle in the Bitcoin timeline. Most people would be quick to judge the Laszlo Hanyecz Bitcoin pizza anecdote as one in which the Bitcoin owner was foolish in spending his Bitcoin on purchasing a pizza. On the other hand, you can notice how the Bitcoin pizza purchase registered the first-ever record of purchasing real-world assets with cryptocurrency. The following post dives deeper into the origins of Bitcoin pizza day and its significance.
What is Bitcoin Pizza Day?
The first thing you need to know about Bitcoin Pizza Day is the story behind the term. Every year, the crypto community celebrates Bitcoin Pizza Day on May 22. It is the day when the Bitcoin pizza story comes to everyone’s mind. What was the story of the Bitcoin pizza? An early Bitcoin miner and programmer from Florida, Laszlo Hanyecz served as a crucial contributor to Bitcoin development.
Before the first halving of Bitcoin rewards in 2012, every successful miner received 50 BTC for discovering a new block. Therefore, mining around 200 blocks could have helped you receive 10,000 BTC as the reward. Considering the fact that Bitcoin was in its early stages of development in 2010, mining was not competitive. At the same time, Bitcoin had not gained traction in 2010, only a year after its inception.
Laszlo Hanyecz thought that it would be a good idea to trade his Bitcoin holdings for two slices of pizza. 2010 would go down in the pages of history as the Bitcoin pizza year when an individual paid for a pizza in Bitcoin. Laszlo put out an offer on Bitcointalk forum to buy pizza in return for Bitcoin.
The offer stated that he would transfer 10,000 BTC to anyone who would order, collect and deliver two Papa John pizzas. Four days later, someone accepted the offer of Laszlo, and thus history was created. Someone had actually used Bitcoin as a means of exchange in a financial transaction involving real-world goods.
Develop comprehensive knowledge about the working of Bitcoin blockchain by Enrolling in the Getting Started with Bitcoin Technology Course.
What Is Interesting about Bitcoin Pizza Day?
The historical significance of Bitcoin Pizza Day is visible in the use of Bitcoin for purchasing real products. Laszlo inadvertently set a precedent for future use cases of Bitcoin, and the growth of Bitcoin is proof of the same. According to Laszlo, the pizza purchase with Bitcoin showed the world that Bitcoin is real. However, the Bitcoin pizza price turned out to be a huge loss for Laszlo as he was left with only a few Bitcoins in single digits. Many people take out their calculators and use the current price of Bitcoin to evaluate how much the two pizzas would have cost today.
The most interesting answer to “How much is the Bitcoin pizza worth today?” points to the all-time high price of Bitcoin. What if Laszlo had sold off his 10,000 BTC stash when the price of Bitcoin was $68,990? He would have had $690 million in his bank account and could have purchased 46 million large pizzas from Papa John. Laszlo would have had a massive stash of pizzas for a lifetime. While many would assume that Laszlo made a foolish decision, the Bitcoin pizza story presented the foundations for using cryptocurrency to pay for coffee or even real estate.
Key Milestones in Bitcoin Timeline
The next important highlight in understanding Bitcoin Pizza Day would point to a review of the notable milestones for Bitcoin. Users in the Bitcoin community commemorate the pizza purchase by Laszlo Hanyecz on May 22, 2010, as Bitcoin Pizza Day. How did the world of Bitcoin look before and after Bitcoin Pizza Day?
The examples of blockfi Bitcoin pizza day rewards and coupons alongside interesting activities on other crypto platforms show the transformative impact of the Bitcoin pizza purchase story. Bitcoin arrived in the world with the whitepaper released by Satoshi Nakamoto in 2008. Let us take a look at the important milestones before and after the first pizza purchase with Bitcoin.
Before Bitcoin, the world had DigiCash, a unique platform for electronic money transfers. Established by David Chaum, DigiCash became one of the significant players in promoting virtual currencies in 1989.
After almost two decades, the Laszlo Hanyecz Bitcoin pizza anecdote was waiting to happen. In January 2009, Bitcoin founder Satoshi Nakamoto created 50 Bitcoin and transferred 10 of them to an early Bitcoin adopter, Hal Finney.
In May 2019, Laszlo Hanyecz initiated the first Bitcoin transaction in the real world by purchasing pizza with Bitcoin.
By July 2010, Bitcoin trading had started, and by the end of 2010, the value of Bitcoin was almost $0.80.
In October 2011, the cryptocurrency ecosystem witnessed the arrival of Litecoin, one of the earliest altcoins based on Bitcoin code. Today, you can notice how Bitcoin Pizza Day explained the possibilities for introducing more than 19,000 different cryptocurrencies today. On top of it, the cryptocurrencies which emerged alter have extended beyond the simple use cases of decentralized payment.
Another important milestone in the journey of Bitcoin emerged in October 2013 with the FBI shutting down Silk Road, a black market that used cryptocurrencies for anonymous transactions.
The biggest crypto exchange, Mt. Gox, which managed around 70% of all crypto transactions, experienced a massive setback in February 2014. After a hacking attack, the crypto exchange had to become bankrupt.
The consequences of the Bitcoin Pizza year started becoming more prominent in December 2014, when Microsoft included Bitcoin as an accepted form of payment.
Within a gap of the next three years, the value of Bitcoin increased gradually and exploded in December 2017. At the end of 2017, the value of Bitcoin was almost $15,000 and four years later; Bitcoin touched its all-time high at $68,990.
The significance of the Laszlo Hanyecz Bitcoin pizza purchase has also had a significant influence on many events in Bitcoin history. For example, PayPal, a leading international payment processing platform, entered the crypto market in 2020. Electric vehicle manufacturer Tesla announced the move to accept Bitcoin payments in 2021 before retracting their decision. Another major player in driving Bitcoin adoption is Morgan Stanley. The US bank introduced the facility of offering Bitcoin to specific clients in March 2021. Most important of all, El Salvador became the first country to accept Bitcoin as a legal tender in September 2021.
With so many milestones in the history of Bitcoin, it is important to understand how Bitcoin Pizza Day fits in different narratives for growth of Bitcoin. How are big financial institutions and businesses accepting Bitcoin? Would they have accepted Bitcoin without proof of using Bitcoin for purchasing real products? Now you can understand why the story of Laszlo Hanyecz is not just an example of novice mistakes of Bitcoin owners.
Get familiar with the terms related to cryptocurrency with Cryptocurrency Flashcards
Contribution of Laszlo Hanyecz
Almost everyone in the crypto community must have heard of Laszlo Hanyecz’s story. Interestingly, most people choose to focus on the Bitcoin pizza price rather than the larger implications of the event. As a matter of fact, the Bitcoin Pizza Day celebrations fail to do justice to the contributions of Laszlo Hanyecz. With the Bitcoin Pizza Day of 2023 coming closer, let us learn how Laszlo is more than the ‘guy who bought pizzas for 10,000 BTC’.
The HODL concept gained prominence in the crypto community sometime around 2014. As Bitcoin was generated from a peer-to-peer electronic cash system, it turned into a valuable asset for whales. Bitcoin owners started accumulating tokens and distributing them in the market during higher trends in parabolic growth. Most of the Bitcoin owners are in the game just for the profits due to appreciation in value of Bitcoin. On top of it, many users in the Bitcoin community do not concentrate on the objective of Bitcoin as a peer-to-peer electronic cash system.
How did Laszlo and his contributions define Bitcoin? The answers to this question are important highlights you would want to remember on this year’s Bitcoin Pizza Day. Rather than pressing over questions like “How much is the Bitcoin pizza worth today?” you need to think about how Laszlo transformed Bitcoin. You would be surprised to know that Laszlo was one of the earliest contributors to the Bitcoin code.
Apparently, he was the first developer to provide the Bitcoin logic for Mac OS. In addition, he emerged as the first Bitcoin programmer to create the GPU mining code suited to Bitcoin. Interestingly, Laszlo also tested the GPU mining code alongside managing the ability for mining with a higher hash rate.
Laszlo informed Satoshi Nakamoto, as well as the Bitcoin community, about his findings. However, Satoshi was way ahead in his research as he had fluency in GPU mining and its potential uses in avoiding 51% of attacks. The best part of Bitcoin Pizza Day explained for beginners is the fact that Laszlo never hesitated in spending Bitcoins. He never had any regrets for spending the 10,000 BTC on pizza as he was the first to spend Bitcoin before the rest of the world followed suit.
The contributions of Laszlo in the early development of Bitcoin mining prove that he is more than the ‘pizza guy’ in the crypto community. On top of it, the pizza purchase by Laszlo was not a mistake if you look back at the series of events it had inspired. As a matter of fact, he was probably the first person to allocate value to Bitcoin, which was not traded on any exchange in 2010. He proved that Bitcoin could be used as a variant of electronic cash for purchasing desired products and services.
How Can You Participate in Bitcoin Pizza Day Celebrations?
The celebrations of Bitcoin Pizza Day every year are all about Bitcoin and pizza. It is no surprise that Bitcoin trading volume increases on Bitcoin pizza day. You can notice some important events from Bitcoin Pizza Day of 2022 to establish expectations regarding the celebrations this year. The blockfi Bitcoin pizza day association in 2022 is evident in the announcement by Visa regarding expenses on crypto cards from BlockFi, which had climbed beyond $1 billion. Payment with Bitcoin and other popular types of cryptocurrencies gained mainstream popularity in 2022. Apparently, around 80% of customers in the US had used Bitcoin or cryptocurrencies for in-store and online shopping.
One of the notable ways to commemorate Bitcoin Pizza Day is to look for stores to buy pizzas with Bitcoin. Rather than pondering over questions like “How much is the Bitcoin pizza worth today?” you need to look for opportunities for investing in cryptocurrency. Another proven approach for celebrating Bitcoin Pizza Day is to look for interesting competitions.
The popular DeFi platform, Cake DeFi, launched a contest for Bitcoin Pizza Day last year with a reward of $5500. The simple premise of the contest involved participants guessing the price of Bitcoin on 22 May 2022. Participants who guessed the price correctly could earn $5500 directly in their Cake DeFi account in the form of Bitcoin.
Dive deeper into the world of Decentralized Finance (DeFi) and understand and its connection to crypto by enrolling in Defi skills path.
The Bitcoin pizza story will always be one of the prominent highlights in the history of Bitcoin for years. Laszlo Hanyecz, the Florida-based Bitcoin developer, had mined 10,000 BTC as block rewards in the early days of Bitcoin. However, there was no exchange for trading Bitcoin into fiat currency.
Laszlo put out an offer to buy him two large pizzas in return for 10,000 Bitcoin and received a confirmation within four days. In the long run, the story of Laszlo would be one of the early examples of Bitcoin adoption. Bitcoin Pizza Day 2023 is coming closer, and you can make the most of the day with interesting activities. Learn more about making your Bitcoin Pizza Day memorable right now.
*Disclaimer: The article should not be taken as, and is not intended to provide any investment advice. Claims made in this article do not constitute investment advice and should not be taken as such. 101 Blockchains shall not be responsible for any loss sustained by any person who relies on this article. Do your own research!