Guy paid 10,000 Bitcoins for two Papa John's pizzas in 2010. Now, it's worth a massive $670 million

In May 2010, Bitcoin (BTC) had almost no value. On May 18, 2010, programmer Laszlo Hanyecz offered 10,000 BTC for some pizzas. This offer is now considered the first Bitcoin transaction. Hanyecz made the offer on May 18 but it was not accepted until May 22. Hanyecz wrote, "I'll pay 10,000 bitcoins for a couple of pizzas...maybe two large ones so I have leftovers for the next day. I want food delivered in return for bitcoins so I don't have to order or prepare it myself. You can make the pizza yourself and bring it to my place or order it for me."

When people asked where he lived, he said Jacksonville, Florida. Some pointed out that he could get a better deal since 10,000 BTC was worth $41 at the time. One person suggested ordering from Papa John's, and another offered to place a Domino's order from Europe. But by May 21, no one had accepted his offer. Hanyecz joked that he was getting hungry and wondered if his offer was too low. On May 22, he announced that he had successfully exchanged 10,000 bitcoins for pizza. Thus, May 22 is named as 'Bitcoin Pizza Day.' 

Hanyecz utilized 10,000 BTC, which is now worth $670 million, per Bitcoin.com. In June, he reiterated his offer, stating that he would exchange 10,000 Bitcoin for two pizzas whenever he got the money. The pizzas came from Papa John's, which tweeted about the acquisition in 2021. "11 years ago today, a very hungry programmer, Laszlo Hanyecz, paid 10,000 bitcoin for two Papa John’s pies, marking the very first bitcoin pizza transaction ever," Papa John's announced on May 22, 2021.

The value of Bitcoin

Because it may be used in place of and swapped for fiat money, Bitcoin has value. The primary source of its high value is investor demand, which is motivated by the desire to turn a profit. The price of Bitcoin is set by supply and demand, or what people are willing to pay, much like the price of any other useful item. As long as there are people who regard Bitcoin highly, there will be a need for it. Bitcoin was created to take the place of established monetary systems and give people control over their money—not governments or other organizations. The main forces affecting the price of bitcoin are fear and greed in addition to supply and demand. Some individuals believe that a product's inherent worth or usefulness is a store of wealth or production costs. Nevertheless, Bitcoin wouldn't be as erratic and unpredictable as it is if they were the primary causes.

Bitcoin's growing acceptance

Bitcoin gained considerable respect in recent years although many investors merely use it for speculation. US financial authorities authorized bitcoin exchange-traded funds (ETFs) in January 2024. More people can indirectly invest in Bitcoin through these funds instead of keeping it themselves.

One of the main factors driving Bitcoin's price increase to a record high was this approval. In September 2021, El Salvador became the first country to accept Bitcoin as legal tender. However, the cryptocurrency hasn't been widely adopted by the population. A study by Central America University (UCA) found that 88 percent of Salvadorians did not use Bitcoin in 2023.

This article originally appeared 4 months ago.