May 22, 2010 was the day that went down in Bitcoin history forever. On that day, Laszlo Heinitz, a computer programmer from Florida, bought two pizzas for 10,000 bitcoins, which had only recently been put into circulation. This day is now called Bitcoin Pizza Day, and every year on May 22, the community celebrates the landmark event.
The idea of using cryptocurrency to buy goods and services was completely new at the time, and Heinitz could not resist the temptation. However, he could not even guess that bitcoin would become such a valuable currency and that his pizzas would one day cost several million dollars.
Pizza for 10,000 BTC
Noon, May 18, 2010: On Bitcointalk.org, the oldest crypto forum, programmers have boring conversations. They discuss the development of Bitcoin's source code and the difficulties it may encounter.
Recently the world suffered a financial crisis because of the machinations of Wall Street. Governments pumped trillions of dollars into the economy so that those who caused the problems could continue to live comfortably.
Many felt that there was something wrong with the monetary system. Those who hurt the economy the most get the most help.
Just 1.5 years ago, the anonymous programmer Satoshi Nakamoto published a document in which he described a completely new idea - the idea of money that is not controlled by governments and banks. In 2009, fans of this new system even conducted the first transaction. Satoshi Nakamoto transferred 50 BTC to cryptographer Hal Finney. This meant that digital money worked and could be created and transferred to other people. Only where to find people willing to buy bitcoins?
One such member of Bitcointalk.org was Hungarian programmer Laszlo Heinitz. He often corresponded with Satoshi Nakamoto. He even mined bitcoins himself.
So, May 18, 2010. Laszlo Heinitz visits Bitcointalk.org with a rather interesting idea.
"Can the bitcoins that are sitting idle on my drive be exchanged for something of value?"
He starts a branch and offers to transfer 10,000 VTS to the user who orders two pizzas with home delivery. He also lists in detail what kind of toppings he likes.
There were many who wanted to, but many could not carry out the transaction, because the protocol was slow. The commission was 0.99 VTs, and the confirmation had to wait 4 days.
The buyer was forum member Jeremy of California. He paid for two Papa John's pizzas for $41. This date became known as Bitcoin Pizza Day.
As Fidelity writes, this is "the day we measure the value of bitcoin in sausage, cheese and sauce."
Is Laszlo a loser or a crypto-angel?
Many people consider Laszlo a loser. They say he should have just kept mining and not sold bitcoins.
Remember that it was 2010, and the exchange rate of VTS was only $0.01. But even at that rate, nobody needed coins. There were no exchanges, no wallets, no Lightning Network fast payments. Heinitz kept just conventional coins on disk. If he hadn't made the first offer, those bitcoins would have been gathering dust on his disk.
Bitcoin's value depends mainly on acceptance and demand from new users.
The most expensive pizza was the start for the development of the market. In just a couple of months, the first cryptocurrency exchange appeared, and the bitcoin rate increased several times.
As WTC developer Danny Scott writes, if a man had bought bitcoins every May 22 for 10 years, he would be rich now. But without Heinitz, Bitcoin would never have become "digital gold.
Now with 10,000 WTC, Heinitz could have bought every pizzeria in the United States. But he has no regrets about his deal. Thanks to his fame, Laszlo made quite a fortune. And he became a crypto-angel who launched a powerful digital money industry.
How has the real value of bitcoin pizza changed over the years?
Many years after the historic bitcoin pizza purchase, its value continues to be of interest to cryptocurrency enthusiasts. How has its real value changed over the years?
2010. When pizza was first sold for bitcoin
At the time, bitcoin was still a young cryptocurrency, its value did not exceed a few cents, and no one could not assume that it would grow to unprecedented heights.
The value of the two pizzas was 10,000 bitcoins. At the then exchange rate it was about $41. Thus, one bitcoin was worth $0.0041.
2012
At the beginning of 2012, a bitcoin was worth about $5. The value of 10,000 bitcoins used to buy two pizzas was already $50,000.
2013
By the end of 2013, bitcoin had risen to $1,000. The value of the 10,000 bitcoins used to buy two pizzas was already $10 million.
2014-2016
In 2014, the value of bitcoin began to decline, and by 2016 it was around $500. The value of 10,000 bitcoins used to buy two pizzas dropped to $5 million.
2017
In 2017, bitcoin soared to historic heights, reaching the $19,900 mark. The value of the 10,000 bitcoins used to buy two pizzas was already $199 million.
2020-2021
After a prolonged bear market In 2020, there was a significant jump in the cryptocurrency market. In March, bitcoin fell to $4,000 due to the panic in financial markets caused by the COVID-19 pandemic. After that, however, the rate began to gradually rise, peaking at $63,000 in April 2021.
The bitcoins spent were already valued at $630 million.
2022-2023
The whole year 2022 the value of the first cryptocurrency was decreasing all the time, but in 2023 we see at least a rebound of the market. The value of the very 10,000 thousand bitcoins is already more than half of what it was in 2021.
What you can buy for 10 000 BTC
We decided to find out what you could buy for 10 thousand bitcoins in different years. I think Laszlo Hanich in his 2010 year would have been very surprised to find out that he could afford, for example, a Lockheed Martin F-35A.
What do you think of this story? Let me know in the comments
