A Slice of History: Bitcoin Pizza Day and Its Lasting Impact
Introduction
On May 22nd, 2010 (exactly 14 years ago today), computer programmer Laszlo Hanyecz exchanged 10,000 bitcoins for 2 boxes of Papa John’s pizza, marking the first-ever transaction of bitcoin for a commodity. Ever since, Bitcoiners all around the world have continued to celebrate the day as Bitcoin Pizza Day in different fashion and style. In addition, so much has changed, including the price of bitcoin, its usage, and its global adoption.
The Legend, Laszlo
Often referred to as simply the “Pizza Guy”, Laszlo – a computer programmer and early adopter in fact wrote the first GPU miner which was how he was able to accumulate bitcoins. He became the first person in history to use bitcoin in a commercial transaction when he made the purchase of 2 boxes of pizzas with 10,000 bitcoins worth about $41 at the time. The transaction marked a significant milestone for Bitcoin, demonstrating that Bitcoin could transcend theory and become a practical form of money and a means of exchange. In the words of Laszlo: “What I was trying to do was make it clear that I didn't want somebody to send me a Papa John's gift card, or a Domino's credit, or anything like that—I wanted food, and I wanted to pay Bitcoins for food. Because if I can buy food with it, then it's as real as any other money, right? Food is a basic necessity - if I can eat from Bitcoin, I can live off of Bitcoin.”
This event underscored the importance of community and experimentation in the development of Bitcoin. Evolution of Bitcoin since the first Bitcoin Pizza DayIn 2010 Bitcoin was very much in its nascent stage, characterized by experimentation, development, and the formation of a dedicated community. Bitcoin was still undergoing significant developments; the mining community was still growing and was at a stage where it urgently required more miners to come aboard to validate transactions.The implication was that transactions were typically expected to be incredibly slow, a factor that negatively affected the decision of interested participants at the time. Also, during that time bitcoin was touted as a tool and money for criminals and members of the underworld. However, since 2010 till date, bitcoin has undergone several significant upgrades including the Lighting Network Solution – a layer 2 solution that enables bitcoin transactions to move at the speed of light.
The price of one bitcoin has surged from less than $1 to over $70,000, making bitcoin arguably the most lucrative financial asset available in modern day history. Countries (like El-Salvador) and cities (Lugano, Switzerland) around the world have adopted bitcoin as a legal tender within their jurisdictions and smart money is now heavily invested and exposed to bitcoin via Bitcoin ETFs available in countries like US and Hong-Kong.
The price of pioneering
A quick calculation of 10,000 bitcoins with the current price of one bitcoin today ($71,000) will equal to seven hundred and ten million dollars ($710,000,000) for the same 2 pizza boxes. The basic comparison of how much pizza you can get with those 10,000 bitcoins today shows how strong bitcoin is compared with prevailing government-controlled currencies. Ordinarily, you would expect anyone in this position to feel some type of regret, but not Laszlo. In a later interview, he felt neither regret nor sadness. Instead, he expressed a sentiment of satisfaction and pride for haven done it. For him, it wasn't just about the transaction, but about contributing to a significant moment in Bitcoin's journey. In his words: “I don't regret it. I think that it's great that I got to be part of the early history of Bitcoin in that way, and people know about the pizza. It's an interesting story because everybody can kind of relate to that and be like, 'Oh my God, you spent all of that money”
Conclusion & Call to Action
Bitcoin Pizza Day marks a pivotal moment in the history of Bitcoin; it reminds us how far we have come since the first ever bitcoin purchase in 2010 and can help us speculate what the future has in store for us. Bitcoin Pizza Day is not only a celebration of this specific transaction but also a reminder of the early adopters' vision and the community's role in Bitcoin's growth. For bitcoin to fulfill its promise, we must continue to use and advocate its use as a medium of exchange and not merely as a store of value - a narrative mostly spearheaded by corporate finance. Bitcoin was designed as a peer-to-peer electronic cash system to eliminate the need for existing centralized financial systems and institutions. Merely buying and just HODLing should not be the case. We must continue to use and encourage the use of bitcoin in the way it was intended otherwise it will never fulfill its promise as the best money. It is worthy to note that for anything to be considered as money, it must satisfy all three criteria: being a store of value, a unit of account, and a medium of exchange.
On May 22nd, 2010 (exactly 14 years ago today), computer programmer Laszlo Hanyecz exchanged 10,000 bitcoins for 2 boxes of Papa John’s pizza, marking the first-ever transaction of bitcoin for a commodity. Ever since, Bitcoiners all around the world have continued to celebrate the day as Bitcoin Pizza Day in different fashion and style. In addition, so much has changed, including the price of bitcoin, its usage, and its global adoption.
The Legend, Laszlo
Often referred to as simply the “Pizza Guy”, Laszlo – a computer programmer and early adopter in fact wrote the first GPU miner which was how he was able to accumulate bitcoins. He became the first person in history to use bitcoin in a commercial transaction when he made the purchase of 2 boxes of pizzas with 10,000 bitcoins worth about $41 at the time. The transaction marked a significant milestone for Bitcoin, demonstrating that Bitcoin could transcend theory and become a practical form of money and a means of exchange. In the words of Laszlo: “What I was trying to do was make it clear that I didn't want somebody to send me a Papa John's gift card, or a Domino's credit, or anything like that—I wanted food, and I wanted to pay Bitcoins for food. Because if I can buy food with it, then it's as real as any other money, right? Food is a basic necessity - if I can eat from Bitcoin, I can live off of Bitcoin.”
This event underscored the importance of community and experimentation in the development of Bitcoin. Evolution of Bitcoin since the first Bitcoin Pizza DayIn 2010 Bitcoin was very much in its nascent stage, characterized by experimentation, development, and the formation of a dedicated community. Bitcoin was still undergoing significant developments; the mining community was still growing and was at a stage where it urgently required more miners to come aboard to validate transactions.The implication was that transactions were typically expected to be incredibly slow, a factor that negatively affected the decision of interested participants at the time. Also, during that time bitcoin was touted as a tool and money for criminals and members of the underworld. However, since 2010 till date, bitcoin has undergone several significant upgrades including the Lighting Network Solution – a layer 2 solution that enables bitcoin transactions to move at the speed of light.
The price of one bitcoin has surged from less than $1 to over $70,000, making bitcoin arguably the most lucrative financial asset available in modern day history. Countries (like El-Salvador) and cities (Lugano, Switzerland) around the world have adopted bitcoin as a legal tender within their jurisdictions and smart money is now heavily invested and exposed to bitcoin via Bitcoin ETFs available in countries like US and Hong-Kong.
The price of pioneering
A quick calculation of 10,000 bitcoins with the current price of one bitcoin today ($71,000) will equal to seven hundred and ten million dollars ($710,000,000) for the same 2 pizza boxes. The basic comparison of how much pizza you can get with those 10,000 bitcoins today shows how strong bitcoin is compared with prevailing government-controlled currencies. Ordinarily, you would expect anyone in this position to feel some type of regret, but not Laszlo. In a later interview, he felt neither regret nor sadness. Instead, he expressed a sentiment of satisfaction and pride for haven done it. For him, it wasn't just about the transaction, but about contributing to a significant moment in Bitcoin's journey. In his words: “I don't regret it. I think that it's great that I got to be part of the early history of Bitcoin in that way, and people know about the pizza. It's an interesting story because everybody can kind of relate to that and be like, 'Oh my God, you spent all of that money”
Conclusion & Call to Action
Bitcoin Pizza Day marks a pivotal moment in the history of Bitcoin; it reminds us how far we have come since the first ever bitcoin purchase in 2010 and can help us speculate what the future has in store for us. Bitcoin Pizza Day is not only a celebration of this specific transaction but also a reminder of the early adopters' vision and the community's role in Bitcoin's growth. For bitcoin to fulfill its promise, we must continue to use and advocate its use as a medium of exchange and not merely as a store of value - a narrative mostly spearheaded by corporate finance. Bitcoin was designed as a peer-to-peer electronic cash system to eliminate the need for existing centralized financial systems and institutions. Merely buying and just HODLing should not be the case. We must continue to use and encourage the use of bitcoin in the way it was intended otherwise it will never fulfill its promise as the best money. It is worthy to note that for anything to be considered as money, it must satisfy all three criteria: being a store of value, a unit of account, and a medium of exchange.