Bitcoin's First Transaction: 10,000 BTC for Pizzas, Now Worth $2 Billion

This Sunday marks the 15th anniversary of the first Bitcoin transaction, where early adopter Laszlo Hanyecz offered to pay 10,000 BTC for two large pizzas. This transaction, valued at about $42 at the time and over $2 billion today, is considered one of the most important in Bitcoin's history. Hanyecz's request, posted on Bitcointalk, was a bold move that set the stage for future Bitcoin transactions.

Hanyecz's legacy extends beyond this single transaction. He continued to spend bitcoins on pizza, even offering to trade 10,000 BTC for two pizzas multiple times. However, by August 2010, the demand for his offer had increased significantly, and the bitcoin hash rate had multiplied by more than 26 times. This was largely due to the pioneering efforts of pseudonymous miner ArtForz, who had built their own GPU mining software. Hanyecz eventually stopped the experiment, stating that he could no longer afford to keep doing it.

Hanyecz's bitcoin address shows that he received 81,432 BTC, presumably from his mining operations, and spent the same amount on pizza trades. If his statement is true, this would mean he spent the equivalent of $8.45 billion on pizza today. Had he held onto his bitcoins, Hanyecz would only be $1.5 billion short of Michael Saylor on Forbes' billionaires rich list. However, Hanyecz does not seem to regret his decision, stating that Bitcoin is meant to be spent.

Jeremy "Jercos" Sturdivant, the individual who sold the pizzas to Hanyecz, was only 18 at the time. He coordinated the deal with Hanyecz via IRC and was also a bitcoin miner himself. Sturdivant has shown similar grace as Hanyecz when asked if he regrets the experiment, stating that Bitcoin as a currency is meant to be spent. At the time, Sturdivant was still sitting on quite a few coins and was using them as money.

Another interesting fact is that Satoshi Nakamoto, the creator of Bitcoin, had invented GPU mining before Hanyecz. In an interview from May 2020, Hanyecz revealed that Satoshi had shared his version of GPU mining code with him. Satoshi had cautioned Hanyecz about potentially developing GPU miners too quickly, as he was keeping the code ready in case he had to defend the network with it. This revelation adds another layer to the legacy of Bitcoin Pizza Day, highlighting the early efforts to protect the network from 51% attacks.

The legacy of Hanyecz and Sturdivant within the context of Bitcoin Pizza Day is largely ironic. Bitcoin has become so valuable that spending it is now viewed as tempting fate. Nobody wants to accidentally spend billions of dollars on pizza. This is precisely why Hanyecz will forever be remembered as a Bitcoin Legend.