22 May 2010 was a day that will forever go down in Bitcoin history.
On this day, Laszlo Heinitz, a computer programmer from Florida, bought two pizzas for 10,000 bitcoins that had just recently been put into circulation. This day is now called Bitcoin Pizza Day, and every year on 22 May, the community celebrates the milestone 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 imagine that bitcoin would become such a valuable currency and his pizzas would one day cost several million dollars.
This article was prepared by Coinpaper and is intended for educational purposes. We hope the material will help you better understand and explore the cryptocurrency market.
Pizza for 10,000 BTC
Monday 18 May 2010: on the oldest crypto forum Bitcointalk.org, programmers are having boring conversations. They discuss the development of Bitcoin’s source code and the difficulties it may face.
Recently, the world experienced a financial crisis due to the machinations of Wall Street. Governments pumped trillions of dollars into the economy so that those who caused the problems could continue to live happily ever after;
Many felt that something was wrong with the monetary system. Those who hurt the economy the most get the most help.
Just 1.5 years ago, an anonymous programmer Satoshi Nakamoto published a paper describing an entirely 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, it could be created and transferred to other people. But where would you find people willing to buy bitcoins?
One such contributor to Bitcointalk.org was Hungarian programmer Laszlo Heinitz. He often corresponded with Satoshi Nakamoto. He even mined bitcoins himself.
So, 18 May 2010. Laszlo Heinitz comes to Bitcointalk.org with a rather interesting idea.
”Can the bitcoins that are lying idle on my drive be exchanged for something valuable?”.
He starts a thread and offers to transfer 10,000 BTC to a user who orders him two pizzas delivered to his home. He also lists in detail what toppings he likes.
There were a lot of people interested, but many of them could not make a transaction, because the protocol was slow. The commission at that time was 0.99 BTC, and confirmation had to wait 4 days;
Historic deal
Heinitz posted the bid on a cryptocurrency forum back on May 18. He offered to exchange 10 thousand bitcoins for any pizza with onions, sausages, mushrooms, tomatoes or just cheese pizza. At that time, ten thousand bitcoins cost about $40. A few days later, Jeremy Stardivent responded to the announcement. He agreed to trade two large pizzas from Papa John’s for cryptocurrency.
Since then, however, the price of bitcoin has begun to skyrocket. If Laszlo had kept his 10,000 bitcoins, they would be worth hundreds of millions of dollars today. This makes it one of the most expensive pizza purchases in history when viewed in retrospect.
Where bitcoins have gone
At the time Jeremy Sturdivant was only 19 years old. He could not even imagine that fate would give him a chance to become a millionaire;
Sturdivant quickly spent his bitcoins on various small things. At the time of his last purchase, BTC price was around $400. Sturdivant believes that it was a successful investment, because he got more than 1000% profit. Like Heinitz he has forever written his name in the history of the cryptocurrency world.
”Give a man a pizza, he’ll eat for a day; let him buy a pizza with bitcoin, and it will revolutionise the economy.”-Sterdivant once joked.
Is Laszlo a loser or a crypto angel?
Many people consider Laszlo a loser. They say that he should have just mined further and not sold bitcoins;
Remember, this was 2010 and the VTS exchange rate was only $0.01. But even at that rate, nobody needed the coins. There were no exchanges, no wallets, no Lightning Network fast payments. Heinitz was just storing bitcoins on a disc. If he hadn’t made the first offer, those bitcoins would have continued to gather dust on his disc.
The value of bitcoin is largely dependent on adoption and demand from new users.
The most expensive pizza was the start for the market to develop. In just a couple of months, the first crypto exchange appeared, and the bitcoin exchange rate grew several times.
As VTS developer Danny Scott writes, if a person had bought bitcoins every 22 May 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 buy all the pizzerias in the United States. But he doesn’t regret his deal. Thanks to his fame, Laszlo made a considerable fortune. And became a crypto-angel who launched a powerful digital money industry.
The legacy of the transaction
Today, May 22 is celebrated in the cryptocurrency community as “Bitcoin Pizza Day,” a day that symbolizes the beginning of bitcoin’s use in the real economy. This story has become a lesson of sorts for everyone involved in the world of cryptocurrencies: it demonstrates how quickly values can change and what unexpected consequences decisions that at first glance seem mundane can have.
Laszlo Heinitz, who became the hero of this story, does not regret his decision. It was important for him to prove that bitcoin could be used as a medium of exchange, and he was able to do it. The pizza deal encouraged other market participants to use the cryptocurrency more actively, which ultimately contributed to its growth and spread.
How has the real value of bitcoin pizza changed over the years?
Many years after the historic purchase of bitcoin pizza, its value continues to pique the interest of cryptocurrency enthusiasts. How has its actual value changed over the years?
2010. When pizza was first sold for bitcoin
At that time bitcoin was still a young cryptocurrency, its value did not exceed a few cents, and no one could have guessed that it would grow to unprecedented heights.
The value of two pizzas was 10,000 bitcoins. At the exchange rate at the time, that was about $41. Thus, one bitcoin was worth $0.0041.
2012
At the beginning of 2012, bitcoin was worth about $5. The value of 10,000 bitcoins that were used to buy two pizzas was already $50,000.
2013
By the end of 2013, bitcoin had risen to $1,000. The value of 10,000 bitcoins that were 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 that were used to buy two pizzas dropped to $5 million.
2017
In 2017, bitcoin soared to historic heights and reached the $19,900 mark. The value of 10,000 bitcoins that were used to buy two pizzas was already worth $199 million.
2020-2021.
After a prolonged bear market, 2020 saw a significant jump in the cryptocurrency market. In March, the bitcoin rate fell to $4,000 due to the panic in the financial markets caused by the COVID-19 pandemic. However, after that, the rate began to gradually rise, reaching a peak of $63,000 in April 2021.
Spent bitcoins have already been valued at $630 million.
2022-2023
Throughout 2022 the value of the first cryptocurrency has been declining all the time, but in 2023 we see at least a market rebound. The value of those 10,000 bitcoins is already more than half of what it was in 2021.
2024
In December, bitcoin hit an all-time high at above $106,000. As of 22 May 2024, 10,000 BTC is valued at nearly $1,06 billion.
What can be bought for 10,000 BTC
We decided to find out what could be bought for 10,000 bitcoins in different years. I think Laszlo Hanic in his 2010 would be very surprised to find out that he could afford, for example, a Lockheed Martin F-35A.
Frequently Asked Questions
When is Bitcoin Pizza Day celebrated?
Every year, Bitcoin Pizza Day is celebrated on 22 May to commemorate this historic transaction.
How many bitcoins were given for the pizza?
Heinitz paid 10,000 BTC for the pizza, which at the time was equivalent to just $41. That purchase would be worth over $350 million today.
When was the first time a pizza was sold for bitcoin?
The first known purchase with bitcoin was made in 2010. Laszlo Heinitz bought two pizzas for 10,000 BTC. Since then, bitcoin has become a more widespread means of payment, although not everywhere.
How many Bitcoins are mined per day?
The number of bitcoins mined is not constant and depends on the complexity of the network and the number of miners. Currently, about 900 bitcoins are mined every day, but this number can vary depending on market conditions.
This article was originally Posted on Coinpaper.com
