May 22, 2010 was the day that forever imprinted the history of Bitcoin (). On this day, Laszlo Heinitz, a Florida programmer, bought two pizzas for 10,000 BTC, which just recently appeared. The idea of using cryptocurrencies to buy goods and services was completely new at the time, and Heinitz could not resist the temptation. This day is now called Bitcoin Pizza Day, and annually on May 22, the community celebrates a holiday dedicated to this iconic event.
Pizza for 10,000 BTC
Let’s pretend that today is May 18, 2010. Recently, the world experienced a financial crisis due to fraud on Wall Street. And just one and a half years ago, the anonymous programmer Satoshi Nakamoto published a document in which he described a completely new idea. He wrote about the money that won’t be controlled by governments and banks.
In 2009, fans of this new system even made their 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 to find those who want to buy
Of course, Bitcointalk.org is probably the oldest crypto forum, used mostly by programmers at the beginning. There they discussed the development of the Bitcoin source code and the difficulties it may face. One of such users was the Hungarian programmer Laszlo Heinitz.
So, on May 18, 2010, Laszlo Heinitz came to Bitcointalk.org with a rather unusual idea. He offered to transfer 10,000 to a user who would order him two pizzas delivered to his home. Laszlo even listed all supplements he likes on pizza.
There were a lot of applicants, but many could not complete the transaction, because the protocol worked slowly: the confirmation took 4 days. The lucky buyer was Jeremy Sturdivant from California. He paid for two Papa John's pizzas $41.
A blessing or a curse?
Many think that Laszlo made the biggest mistake in his life. He should’ve just mine further and hold on to his Bitcoin. Why on earth did he do it?
Remember that this was 2010, and the BTC exchange rate was only $0.01? No one needed these coins. There were no exchanges, no wallets, no fast Lightning Network payments. If Heinitz hadn’t made this unique purchase, coins would have been stored on his disk with no actual purpuse.
The value of Bitcoin depends on the acceptance and demand from new users. So we can say that the most expensive pizza was the start for the market development. Just a couple of months later, the first crypto-exchange appeared, and the Bitcoin rate increased several times.
According to BTC developer Danny Scott, if a person bought Bitcoin every May 22 for 10 years, he would now be rich. But without Heinitz, Bitcoin would never have become a “digital gold.” Now for 10,000 BTC, Heinitz could buy all the pizzerias in the USA. But he doesn't regret his decision. He was the one who helped to launch a powerful crypto industry.
How has the value of Bitcoin pizza changed over the years?
Many years after the historic purchase of Bitcoin pizza, its value continues to be of interest to cryptocurrency enthusiasts. Let’s see, how has it changed over the years?
- The year 2010
At that time, Bitcoin was still a young cryptocurrency, its did not exceed a few cents, and no one could have imagined that it would “go to the moon”. Two pizzas cost 10,000 Bitcoins. It was about 41 dollars.
- The year 2012
At the beginning of 2012, Bitcoin was worth about $5. The cost of 10,000 Bitcoin, which was used to buy two pizzas, was already $50,000.
- The year 2013
By the end of 2013, Bitcoin had risen in price to $1,000. The cost of 10,000 Bitcoin was already $10 million.
- The year 2014-2016
In 2014, the price of Bitcoin began to decline, and by 2016 it was about $500. The value of 10,000 Bitcoin has dropped to $5 million.
- The year 2017
In 2017, Bitcoin hit $19,900. The cost of 10,000 Bitcoin was now $199 million.
- The year 2020-2021
After a long bear market, 2020 saw a significant leap in the development of the cryptocurrency market. In March, the Bitcoin exchange 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 increase, reaching a peak of $63,000 in April 2021. The amount of Bitcoins spent on pizzas was now $630 million.
- The year 2022-2023
Throughout 2022, the value of the first cryptocurrency was going down, but in 2023 we see a rebound on the market. The cost of those same 10,000 Bitcoin is now half less than it was in 2021.
In the case with these two pizzas for 10,000 BTC one famous phrase fits perfectly: “That’s one small step for man. One giant leap for mankind.” It was a start of something greater. And who knows what would have happened with Bitcoin and with the whole crypto industry, if it wasn’t for Laszlo Heinitz. What do you think about this purchase? Was it a big mistake or a smart move? Share your opinion in the comments below!
If you want to learn more interesting facts about crypto then don’t forget to check out our blog! You might like our articles “Zero-Knowledge Proofs on BitcoinOrdinals May Accelerate Bitcoin Development – Grayscale
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