Digital money has taken over the world, and no one can ignore it. For entrepreneurs and market investors, the digital currency situation is an overwhelming field. In any case, how could everything begin? Clearly, the first crypto-exchange cost more than two pizzas. Do you find this amusing? Here's what you need to know.
On May 22, 2010, a crypt-miner in Florida traded his Bitcoins for two pizzas. The exchange is noteworthy for being the first to use Bitcoin for a business transaction with a real company. However, Bitcoin was still not an acceptable method of payment during that time.
First Bitcoin Transaction
Laszlo Hanyecz paid 10,000 BTC at a neighbourhood pizza store in 2010, known as Papa John's, to purchase two large pizzas. His Bitcoins were only worth $40 at the time. Hanyecz posted in a bitcoin forum and simply exchanged his Bitcoins with those who could deliver him these pizzas because the digital currency wasn't yet acceptable in the corporate world. Judging by the current value of Bitcoin, which is above $46k, Hanyecz pizzas can be declared the priciest pizzas ever.
Crypto enthusiasts officially dubbed May 22nd as Bitcoin Pizza Day when this famous pizza purchase announced the commercialisation of digital money in the real world. This was the first incident in which bitcoin was used to purchase tangible assets that we are familiar with.
Bitcoin Pizza Brand
Following the Bitcoin and pizza mania, which shows no signs of subsiding anytime soon, Anthony Pompliano, founder of Morgan Creek Digital, announced a seven-day Bitcoin pizza event on Twitter which took place in May 2021. It has partnered with free pizza places in ten cities across the United States but ironically will not allow bitcoin as payment. All earnings from pizza sales will be contributed to the Human Rights Foundation's fund, which enables bitcoin miners.
At the point of pizza purchase, 10,000 BTC was only worth $41
Laszlo Hanyecz may have traded his bitcoin for $41 in a deal. If the data are correct, the cost per bitcoin at the time of offer was around $0.004, or four-thousandths of a penny.
In any event, this brief check at Bitcoin's past is a testament to how much has happened in a small period of time. A penny now could be worth 100 times its value tomorrow, or vice versa. If you've recently purchased or are considering purchasing crypto, you're certainly scared of what might happen to your money. Maybe the fact that the price of a Bitcoin has risen from around $1 to about $30,000 over the last years will provide some confidence. It's been a bumpy road, and we're certain to see more fluctuation as the industry proceeds to delve into an unfamiliar setting.
Thus, assistance from experts is a must. There are several crypto platforms such as Bitcoin-up.io that will ensure that you do not trade your Bitcoin for pizza. Funny right? Maybe, maybe not. However, the Bitcoin Up platform is one of those we found to be committed to helping beginners avoid costly mistakes. You can take this as a fun fact too if you want, especially as the platform provides educational and educative content at the same time.
Bitcoin Pizza Day: Not the first crypto holiday
Bitcoin users have been coining events for nearly as long as the technology has been around. Bitcoiners honoured the absence of Bitcoin founder Satoshi Nakamoto, who had resigned as lead designer, by announcing April 28, 2011, as "Satoshi Disappear Day". It's a suggested bitcoin event to pay homage to an incredible unidentified leader and to analyse how the bitcoin community will remain active after the founder of bitcoin has left.
Hanyecz waited for his pizzas for 4 days
Hanyecz waited a long time for his purchase for days. Hanyecz previously stated on a forum that he placed his offer on Tuesday, May 18, 2010 but he did not receive his pizza until Saturday, May 22 with the help of Jercos.
Hanyecz spent BTC on more than two pizzas
Hanyecz did not limit himself to only two pizzas. In June 2010, he attempted to push the boundary, writing in his post that the exchange was "an open proposal."
There were rumours that there were other pizza-request trades, and there is reason to believe that this is the issue with Hanyecz closing his open proposal in August because he can no longer supply a large number of coins each day.
Jercos later traded the 10,000 BTC
It wasn't long until Jeremy "Jercos" Sturdivant was dragged back into the picture as the Bitcoin Pizza Day celebration progressed. He was the person involved with Laszlo Hanyecz in the very first recorded bitcoin acquisition of a tangible product.
"A currency is supposed to be spent," Sturdivant had stated at the time, stressing that the 10,000 BTC he had acquired was returned into the market swiftly when they were all worth approx $400.
The crypto fever is at an ATH, particularly among young financial investors. While Bitcoin Pizza Day seems to be well now, there are few reports of previous celebrations before 2014. It's because Bitcoin was completely new prior to 2013. Because of this historic event, the worldwide crypto community unites every year on May 22 to honour the first physical virtual currency transaction.
Hanyecz could have profited roughly $690 million if he had speculatively traded his whole reserve at bitcoin's ATH of $68,990 which can purchase 46 million large Papa John's pizzas costing $15 each.
Furthermore, 5 percent of the 10,000 BTC Hanyecz spent on the pizzas in 2010 ended up in an unusually well-off account, while a portion of the assets was allegedly burned on an unsuccessful crypto trade.