If you are new to bitcoin, this story will fascinate you. If you have heard this story before, its time you redo your calculations. As someone who has known about Bitcoin since it was under $1, I had forgotten about this story for a couple of years, and with Bitcoins recent drastic price runup, it is well worth a look back.
Back in 2010 Bitcoin had just gotten a market value with the now-defunct BitcoinMarket.com opening trading in March at $0.003 per BTC. It rapidly grew until it hit just under $0.01 in May of that year. This is when Laszlo Hanyecz steps in with the first ever documented purchase with Bitcoin being used. On May 27th, 2010, Laszlo posted a request to buy pizza with Bitcoin. It was on May 22nd that he reported successfully trading 10,000BTC for two Papa Johns Pizzas (he did this by sending the Bitcoin to another individual, who placed the order for him using US Dollars). The market value of said Bitcoin were $41 when this purchase took place.
I heard this story way back in 2011 when Bitcoin reached the milestone of $1 per coin. My fellow libertarian nerds would laugh at the idea that someone spent $10,000 value on two large pizzas, purchased just 1 year previous.
And then I forgot about the story.
Well, here we are on December 12th 2017 with the price of Bitcoin currently $17,560 per coin. 10,000 bitcoin is currently worth $175,600,000, or rather $87,800,000 for one large Papa Johns pizza. No, I didn’t accidentally add a few extra 0’s there, we are talking $175 million.
When we are talking about an investment that went from $0.003 to $17,500 in 7.5 years, we are talking about a 5.8 million-fold increase. A $1 investment would net you $5.8 million in just 7.5 years – making it likely the greatest investment in human history. And what is a bit unfortunate about this story is to find out that Laszlo spent just about all of his coins he had before it reached the massive growth of 2013, let alone what we see today. He hasn’t posted since 2014, yet I am sure that the bitcoin community would love to donate some of their coins to this bitcoin pioneer. As he stated on February 14th, 2014, “The pizza thing was a lot more popular than I thought so I made good on as many trades as I could. Other than a little bit of single digit change, I spent everything I mined.” You can read all of his posts HERE.
We are actually almost to the point where 2BTC can buy you 10,000 pizzas, what a change less than a decade can make.