All historical revolutions and traditions often started with seemingly insignificant acts.
Did you know that:
The industrial revolution, which is the basis of today’s economy sprung out because of Brit’s love for tea? A fall of an apple led to the discovery of gravity?
Similarly, a simple transaction involving Pizzas would be enshrined as folklore in the crypto community as the Bitcoin Pizza Day.
The Man Behind Bitcoin Pizza Day
So, what does pizza have to do with Bitcoin?
The story dates back to May 22nd 2010 when a Floridonian man decided he wanted free lunch and craved some pizza.
Laszlo Hanyecs was a young programmer and an early contributor to the Bitcoin network when it was hardly a year old. As a part of an even more niche community back then, he even advanced the mining of Bitcoins significantly. He introduced a program that made it possible to mine Bitcoins using their computers Graphics Cards (GPU’s) instead of CPU’s.
But most people of the community do not know Laszlo for his contribution to mining. He is known for an event that occurred because of his mining – Paying for pizzas with Bitcoin.
So one fine day, Laszlo took to the Bitcointalk forum [a forum to discuss all things Bitcoin] and wrote:
“I’ll pay 10,000 bitcoins for a couple of pizzas.. like maybe 2 large ones, so I have some leftover for the next day, I like having leftover pizza to nibble on later. You can make the pizza yourself and bring it to my house or order it for me from a delivery place, but what I’m aiming for is getting food delivered in exchange for bitcoins where I don’t have to order or prepare it myself, kind of like ordering a ‘breakfast platter’ at a hotel or something, they bring you something to eat, and you’re happy!”
Another Bitcoin enthusiast of the time, Jeremy Sturdivant took up the offer and ordered two pizzas (priced about $30 each) from a Pizza chain restaurant in exchange for 10,000 BTC.
A year since its inception, the value of Bitcoin was a fraction of a cent. No vendor accepted it as a means of exchange for actual goods.
Hence, this was the first event that marked an actual transaction using Bitcoins to exchange real-world goods.
PS: The post’s original thread is still up on the bitcoin talk forum.
The Bitcoin Pizza Day
The Bitcoin – Pizza transaction proved to the world that Bitcoin could be used as a medium of exchange in the place of cryptocurrency. It showed that Bitcoins carry value.
May 22nd 2010 went on to be known as the Bitcoin Pizza Day. Since then, Bitcoins have grown in value. Today, it has grown to be one of the greatest assets for investment.
The annual celebration of Bitcoin Pizza day is more of a reminder of Bitcoins journey as an asset class. It puts light on the once in a lifetime investment opportunity by highlighting its historical price trajectory since 2010.
What are the Pizzas Worth Today?
Currently, the price of one Bitcoin is ~ ₹26.84 lakhs.
The math is:
2 pizzas = 10,000 BTC
The current value of Bitcoins paid for 2 pizzas will be ~₹26,840 Crore.
Suppose Laszlo did not give away those 10,000 BTC, will he have made that much money? We may never know because Bitcoin gets value from circulation.
Is it too late to invest in Bitcoins?
Looking at the value of the Bitcoins used to buy pizza may seem overwhelming. But we should remember that the transaction took place at a very early stage of Bitcoin. We have come a long way from Bitcoin Pizza Day, but the journey does not end here.
Bitcoin is now emerging as a vital asset class. I believe that it will continue to grow in value over the next few decades.
If you ask me, I would say that the best time to buy Bitcoin was ten years ago and the second-best time is now. But you don’t have to listen to me, research yourself and decide.
Suppose you are interested in purchasing Bitcoins, you may want to check out CoinSwitch Kuber. It makes crypto investing simple and easy. And you can start investing with as little as ₹100.
Happy Bitcoin Investing!
[su_note] KuberVerse is an educational initiative. Anything expressed here directly or indirectly is not investment advice. And we ask you to do your own research before investing. [/su_note]
Disclaimer : Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. The information provided in this post is not to be considered as investment/financial advice from CoinSwitch. Any action taken upon the information shall be at user's own risk.
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