Crypto Glossary

Bitcoin Pizza

Bitcoin Pizza refers to the infamous transaction where a guy, named Laszlo Hanyecz, paid 10,000 Bitcoins for two pizzas making it the first business transaction of Bitcoin in the real world.

What Is Bitcoin Pizza?

A historic Bitcoin transaction was done on May 22, 2010, in which a man from Florida used the cryptocurrency to pay for two pizzas. The day is celebrated every year, not because of the transaction, but because of the price: the individual in question, Laszlo Hanyecz, paid 10,000 BTC for the two pizzas, which is now worth about USD $465,352,000 with one bitcoin valued at $46,490, at the time of writing.

Laszlo Hanyecz is also the first individual to make a business transaction with Bitcoin where he bought two Papa John's pizzas on May 22, 2010. Hanyeczs' pizzas have become increasingly expensive since then as they were valued at $10,000 just nine months after the transaction when Bitcoin achieved equivalence with the US dollar, and the rest is history.

Interestingly, Hanyecz does not regret his decision. In an interview, he said that ''Bitcoin is a way to harness greed.'' He went on to say that: “It’s common knowledge that anybody who held for four years is in the money. But businesses can’t generally afford to just hold on for four years and not pay their rent.” “It was a really interesting system but nobody’s using it,” he said. “If nobody’s using it, it doesn’t matter if I have it all.”

The irony of this historic transaction was such that the person who bought this pizza from Hanyecz also sold his Bitcoins for a negligible price. Sturdivant, who was 19 at the time, sent two pizzas to Hanyecz and got 10k bitcoins in return. However, not knowing the immense potential of this cryptocurrency, he spent them all to cover the expenses of his business trip. He went on record to have said: “If I had treated it as an investment, I might have held on a bit longer.” He also said: "I would never have thought that the same number of Bitcoins would have a purchasing power on the order of real estate."

This act of both individuals, Hanyecz and Sturdivant, would seem foolish right now, however, at that time no one really knew the immense value this digital currency will have in the years to come.

Since this interesting transaction, crypto enthusiasts celebrate Bitcoin Pizza Day on May 22 all over the world. 

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