3 days ago
Bitcoin Pizza Day: From Novelty to Global Utility
Once dismissed by skeptics as a passing fad, cryptocurrencies become an integral part of the global financial ecosystem. Impressively, this incredible journey has taken shape over the span of just fifteen years.
Back in May 2010, on what has become known as 'Bitcoin Pizza Day,' Bitcoin was first used in a real-world payment transaction. This pivotal event demonstrated Bitcoin's utility as a medium of exchange, paving the way for crypto to rise from the fringes of the internet, into the mainstream.
Since then, the crypto community has celebrated this day, and not just as an excuse to throw a pizza party. "From two pizzas to a global financial movement, crypto's journey has been nothing short of extraordinary—and our community has been the driving force behind it,' said Rachel Conlan, Chief Marketing Officer at Binance.
Back in May 2010, Bitcoin, which first became available for sale the previous fall, was steadily building up a following. However, until then, early adopters had simply traded U.S. dollars for BTC. Bitcoin owners yet to utilize the original cryptocurrency for anything more than as a speculative investment.
That all changed on May 18, 2010. That's when early adopter Laszlo Hanyecz posted a thread on the BitcoinTalk forum, offering anyone 10,000 BTC if they would order two large pizzas, and send them to his home. On May 22, 2010, Laszlo confirmed in a subsequent post that his request had been fulfilled. For the first time, Bitcoin demonstrated its real world utility.
As this event coincided with the aftermath of the late 2000s Global Financial Crisis, there was growing interest in building an alternative financial system, Bitcoin soon emerged as the vehicle to build such a system. Over the next fifteen years, Bitcoin went from facilitating a simple pizza order, to sparking the development of other cryptocurrencies. As you can see from this chart, the value of Bitcoin has increased significantly every year since that first 'Pizza Day' in 2010.
It also led to the development of an entire alternative ecosystem to the highly-centralized and dollar-based global financial system, before becoming integrated with said mainstream system. In short, one can say that crypto has gone from 'Domino's to DeFi' in the fifteen years following this event.
No longer a nerdy novelty hidden away in an obscure corner of the interest, Bitcoin's attainment of global utility has brought with it a sudden influx of institutional backing of this and other major cryptocurrencies.
This has sparked another wave of high price appreciation. Today, the price of 1 BTC is well-within the six-figure category, with Bitcoin recently changing hands for over $110,000.
In other words, Laszlo's 10,000 BTC pizza may have only translated into $41 at the time of the first 'Bitcoin Pizza Day,' but those same 10,000 BTC are now worth over $1.1 billion. That said, without this event, it's questionable whether Bitcoin's journey would've played out the same way.
Even as Laszlo's pizza day was a fairly easy achievement, given Bitcoin's low price and low mining requirements at that time, it's possible that this event happened at the right place at the right time, sparking a chain of events that led to Bitcoin's meteoric rise in status.
The crypto community continues to observe 'Bitcoin Pizza Day,' mainly for how it demonstrates how everyday transactions can profoundly affect the future. That's definitely the case for crypto users even today, as we found out from interviewing Binance users about their own personal 'Bitcoin Pizza stories.'
Take, for instance, the story of Jimmy, a Canadian who became an accidental early 'HODLer' of Bitcoin. Back in 2012, Jimmy purchased 5 BTC in order to complete a textbook purchase. As Jimmy explains his story, 'My first encounter with crypto was in late 2012, when Bitcoin was around $13. I wasn't thinking about investing, I just needed it to buy a textbook on compilers from an online seller who insisted on Bitcoin payment. I bought five whole Bitcoins on Coinbase, used a few to pay for the book, and forgot about the rest. I didn't dive deeper into crypto until years later when I joined Binance. That old Coinbase account? It sat untouched for years, and I became an accidental HODLer.'
Another poignant story comes from Binance Angel @Gerrit92 got into crypto back in 2019. Through patient 'buying and HODLing,' Gerrit92 built a small fortune. To celebrate, he cashed out some of his profits, using them to buy a Rolex. Besides fulfilling a long-held desire to own this valuable watch, the Rolex to this user also serves as a token of the friends and profits he has made via crypto. @Gerrit92 explains, 'I've been investing in crypto since 2019 and have never cashed out a large amount. I traded occasionally to rebalance my portfolio, but I always believed in a long-term vision. After many years in crypto, I decided to take a small portion of my profits to invest in another asset, fulfilling a childhood dream with a valuable purchase, a Rolex. It may be less volatile, but I look at it every day, and it reminds me of crypto and the friends I've made in this community.'
The payoff from his efforts helped to build his self-esteem, and to prove himself to his ex-girlfriend and her father, who rejected him due to his past poverty.
Note to readers: This article is part of Mint's paid consumer connect Initiative. Mint assumes no editorial involvement or responsibility for errors, omissions, or content accuracy.
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