One of Bitcoin’s Earliest Breakthroughs Is Thanks to Piz
Bitcoin can trace one of its earliest breakthroughs back to pizza. The now infamous Bitcoin Pizza Day marks the cryptocurrency’s first-ever recorded transaction for the purchase of a physical item. After all, a currency is not fully formed unless it is exchanged for a good or service. That is key component of what makes up money and on May 22, 2010, that all changed for bitcoin.
Laszlo Hanyecz Paid 10,000 Bitcoins for Two Large Papa John’s Pizzas
The exchange was facilitated by a back and forth conversation between Laszlo and Jeremy Sturdivant on the online forum BitcoinTalk. Known by their forum aliases “laszlo” and “jercos”, the two somewhat knowingly made history, although they could not have realized the magnitude of the moment at the time.
Pizza was the good of choice thanks to Laszlo’s desire to have some already prepared food. He was hungry. He also wanted TWO pizzas so that he could have some leftovers to nibble on the next day. Who can blame him? The pizzas could either be handmade and then delivered or simply ordered from a delivery company.
Jercos obliged. Being in Britain, jercos went the mainstream delivery route and, POOF, two Papa John’s pizzas became the center of the first-ever recorded bitcoin transaction. The price tag on the pizzas has become regular fodder for journalists and the Twitter-sphere each year around May 22.
The Cost of the Pizzas Has Reached as High as $80 Million USD
The transaction continues to be referenced in relation to the rise and fall of the worldwide bitcoin price. Laszlo should not feel bad about his 10,000 BTC spend though. The cryptocurrency had little to no significance in terms of price or value at the time.
With the pizza purchase, bitcoin came into being in a whole new way. It was a groundbreaking moment.
Previously, the electronic peer-to-peer cash system was simply its original protocol. Functional, yes, but more so in theory than anything else. The pizza purchase marked a necessary point in the evolution of bitcoin if it was to become the world’s most well-known cryptocurrency.
Bitcoin now has the potential to go beyond just buying pizzas. For example, take its impact on financial equity. Learn about how the cryptocurrency can help bank the unbanked.