Every year on May 22nd, the crypto community celebrates Bitcoin Pizza Day. This marks the anniversary of the first documented real-world purchase using Bitcoin. Back in 2010, a programmer named Laszlo Hanyecz paid 10,000 BTC for two large pizzas. At today’s prices, those pizzas would be worth hundreds of millions of dollars.
Many people look back and think this was a foolish decision. But in reality, it was a pivotal moment for Bitcoin—one that helped demonstrate its practical use as a currency. This article explores why spending that Bitcoin was anything but a mistake.
The Story Behind the Bitcoin Pizza Purchase
Laszlo Hanyecz was an early Bitcoin miner and enthusiast. At the time, Bitcoin was a little-known experimental digital currency. There were no exchanges, no stable valuation, and very few people who saw its potential.
Laszlo mined his Bitcoin using a GPU—a graphics processing unit—which was far more efficient than the standard CPU mining most people were doing. This allowed him to accumulate Bitcoin quickly. In fact, he was generating so many coins that Satoshi Nakamoto, Bitcoin’s creator, even asked him to slow down.
With a large stack of Bitcoin and a belief in the technology, Laszlo decided to test its utility. He posted on a Bitcoin forum asking if anyone would accept 10,000 BTC in exchange for two pizzas. At the time, this was a fair offer—the Bitcoin was worth around $41, while the pizzas were about $30.
After four days, a teenager named Jeremy Sturdivant took the offer. He ordered the pizzas for Laszlo and received the Bitcoin. That transaction is now immortalized as the first commercial Bitcoin payment.
Why It Wasn’t a Bad Decision
It’s easy to judge with hindsight. But at the time, Bitcoin had no established value. Laszlo wasn’t throwing away a fortune—he was helping to create one.
By demonstrating that Bitcoin could be used for a real-world transaction, he gave the currency something it desperately needed: legitimacy. Up to that point, Bitcoin was largely theoretical. This purchase proved it could work as money.
Moreover, Laszlo had mined thousands more Bitcoin. Spending 10,000 BTC didn’t wipe him out—it was a small fraction of his holdings. He continued to mine and trade, and he was an active part of the early community.
If he had hoarded all his coins, Bitcoin might have remained an obscure project with no practical use case. Instead, his transaction inspired others to think about Bitcoin as a spendable currency.
The Challenge of Holding Bitcoin
Many people assume that if they had been in Laszlo’s position, they would have held onto all their Bitcoin. But history suggests otherwise.
The person who received the 10,000 BTC, Jeremy Sturdivant, sold them when Bitcoin hit $1 each. He used the money to travel. At the time, that seemed like a smart decision—nobody knew Bitcoin would go on to reach prices of over $60,000.
Even Laszlo eventually sold most of his Bitcoin when it reached parity with the US dollar. Like many early adopters, he took profits when he could.
Then there are the stories of loss. Early Bitcoin exchanges like Mt. Gox suffered catastrophic hacks. Thousands of users lost their Bitcoin forever. Others, like James Howells, accidentally threw away hard drives containing private keys to wallets holding thousands of Bitcoin.
Holding Bitcoin for the long term isn’t easy. It requires technical knowledge, constant vigilance, and a strong stomach for volatility. Spending Bitcoin—especially in the early days—was often the most practical choice.
The Deeper Meaning of Bitcoin Pizza Day
Bitcoin Pizza Day isn’t just a fun story. It represents three essential functions of money:
- Store of value – Bitcoin has proven to be a remarkable store of value over time.
- Unit of account – The pizzas were priced in Bitcoin, showing it could be used as a measure of value.
- Medium of exchange – Bitcoin was used to complete a transaction, moving value from one person to another.
Today, Bitcoin is less commonly used for small purchases due to transaction speeds and fees. But its role as a store of value has only grown.
Spending Bitcoin in those early days helped cement its identity. Without people like Laszlo willing to use it, Bitcoin might never have gained traction.
Frequently Asked Questions
What is Bitcoin Pizza Day?
Bitcoin Pizza Day, celebrated on May 22, commemorates the first known commercial transaction using Bitcoin. Laszlo Hanyecz paid 10,000 BTC for two pizzas in 2010.
Why is Bitcoin Pizza Day important?
This event demonstrated that Bitcoin could be used as a real currency. It provided early proof of concept and encouraged broader adoption.
What would those 10,000 Bitcoin be worth today?
The value fluctuates, but at all-time high prices, 10,000 BTC was worth over $600 million. Even today, it represents a life-changing amount of money.
Did Laszlo regret buying the pizzas?
Laszlo has stated that he doesn’t regret the purchase. He believed in Bitcoin as a currency and was happy to help prove its usefulness.
What happened to the person who sold the pizzas?
Jeremy Sturdivant sold the Bitcoin when it reached $1 per coin. He used the proceeds to fund a trip and did not hold onto the Bitcoin long-term.
How can I learn more about using Bitcoin today?
👉 Explore practical Bitcoin guides for up-to-date tips and strategies.
Conclusion: Spending Is Sometimes the Best Way to Hold
Laszlo Hanyecz’s pizza purchase was far from foolish. It was a bold experiment that helped shape Bitcoin’s future. By using Bitcoin as money, he gave it value and purpose.
Holding Bitcoin through more than a decade of volatility, hacks, and technical challenges would have been nearly impossible for most people. Spending it—especially on something as memorable as pizza—was a way to ensure that those Bitcoin left a lasting legacy.
Today, Bitcoin Pizza Day reminds us that currency is meant to be used. Without early spenders and believers, Bitcoin might not be what it is today. Sometimes, spending is the best way to truly hold onto value.