BITCOIN PIZZA
On 22nd May 2010, Laszlo Hanyec bought two Domino's pizzas for 10,000 bitcoins.
Now the price for the two pizzas is
840,362,900 $
The page refresh each 20 sec
On 22nd May 2010, Laszlo Hanyec bought two Domino's pizzas for 10,000 bitcoins.
Now the price for the two pizzas is
The page refresh each 20 sec
Cryptocurrencies have seen an enormous amount of growth since their advent. Bitcoin, the king of the market, has blasted covering most of the market cap has been consistently praised and loved by bitcoin maximalists and crypto enthusiasts alike. This is due to the fact that no other market or any other currency to be specific has been so consistent in its dominance and growth.
Comparing the value of bitcoin against the USD, the price has grown exponentially over a limited supply. The gains made by the currency within a time period of 6-7 years can be seen in the graph below.
The trend clearly shows that bitcoin acts more of a store of value or an asset as opposed to being a transactional currency. This acts as the premise of our story “The bitcoin Pizza”.
Back in the day, there wasn’t enough data available to analyze the potential of the currency. One could only speculate or make assumptions regarding the actual use case and value of cryptocurrencies. The subject of this story, Laszlo Hanyecz, was one of the initial adopters of bitcoin who is also known as the first person to use bitcoin for commercial payments. In 2010, bitcoin was as underpriced as one can think it to be. Hanyecz, a programmer, offered 10,000 bitcoins for two pizzas from Papa John’s, thereby initiating the worst trade deal in the history of commerce. The offer was accepted and Hanyecz received two large pizzas in exchange for 10,000 bitcoins. Although bitcoin didn’t have any real use cases back at that time and he assumed that using digital currencies for actual transactions would be a good idea as they would amount to nothing otherwise.
Fast forward a few years, the two pizzas that were worth $40 back then are priced to be well over $30 million and rising. This example can be used to make a point regarding cryptocurrencies being eligible to be transactional currencies. There is however, a loophole: stablecoins. Stablecoins have fiat or asset reserves due to which the price remains pegged to that underlying asset. The price of USDT, for example, stays locked to the price of a dollar due to which it is used worldwide for payments. Another issue with Bitcoin being used as a payment method is the time that a transaction takes to complete: 10 minutes. This is an awful amount of time for commercial payments that need instant verification. Imagine checking out your cart from Amazon and actually waiting 10 minutes for your bitcoins to reach the store.
There are a lot of talks in the town regarding Dogecoin becoming a medium for payments in the future. If cryptos boom with this consistent pace, we might actually see a lot of bitcoin pizzas in the future as well, maybe named differently to Dogecoin cupcake or XRP chocolates. Hanyecz, however, has no regrets over his transaction as he believes that he did much more than making money, i.e., making history. In an interview with CoinTelegraph, Hanyecz stated:
You know, I don't regret it. I think that it's great that I got to be part of the early history of Bitcoin in that way, and people know about the pizza and it's an interesting story because everybody can kind of relate to that and be [like] - "Oh my God, you spent all of that money!"