What is Bitcoin Pizza and What is its History?

Bitcoin Pizza is a term that refers to the first known purchase of a physical item using bitcoin. How could that happen? Let's look at the history in the following review. 

Understanding What Bitcoin Pizza Is

On May 22, 2010, Laszlo Hanyecz, a programmer who later became famous as the person who bought pizza with bitcoin, made a post on a Bitcoin forum called Bitcointalk. 

He wants to make a deal with someone who will accept bitcoin as payment for pizza. Hanyecz wrote:

"I'll pay 10,000 bitcoins for some pizza. Like maybe 2 large pizzas so I have leftovers for the next day..."

At that time, 10,000 BTC was equivalent to about 41 USD, which means each bitcoin was worth about 0.0041 USD. Hanyecz's offer was accepted by another Bitcointalk user, who paid 25 USD for the two pizzas.

Hanyecz got these coins by mining on his laptop. At that time, consumer grade hardware was powerful enough to mine bitcoin effectively. 

In 2018, Hanyecz used the Bitcoin Lightning Network to buy two pizzas once again, but this time spent only 0.00649 BTC. Hanyecz said in an interview that he does not regret spending 10,000 BTC on two pizzas.

At the time, Bitcoin was an obscure Internet phenomenon followed by only a handful of enthusiasts. Using crypto assets to buy physical goods seems even more implausible than it currently is.

Bitcoin Pizza Day History

Thanks to this incredible transaction, May 22 is now known as Bitcoin Pizza Day. Today is considered a historic moment in bitcoin history, marking the first time the crypto asset was used as a medium of exchange for real-world purchases.

Today, the 10,000 bitcoins used to buy those two pizzas would be worth millions of dollars, making it a remarkable example of bitcoin's early days. The term “bitcoin pizza” has even become synonymous with using the crypto asset for seemingly mundane purchases.

Also read:

BTC Drops: Bitcoin Falls Below $39,000 USD Impact of GBTC Selling

Buy Bitcoin Before or After the Halving? Here's the Guide!

Buy Bitcoin vs Spot Bitcoin ETF, Which is More Profitable?

Why Did Bitcoin Prices Drop After Bitcoin Spot ETF Was Approved?

DISCLAIMER: This article is informational in nature and is not an offer or invitation to sell or buy any crypto assets. Trading crypto assets is a high-risk activity. Crypto asset prices are volatile, where prices can change significantly from time to time and Bittime is not responsible for changes in fluctuations in crypto asset exchange rates.