Happy Bitcoin Pizza Day

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The popular tale goes that this story is a significant part of Bitcoin‘s past and is recognized globally every year. However, fewer people are aware of Hanyecz’s additional accomplishments in the Bitcoin realm. As revealed by Pete Rizzo, a Bitcoin historian and former CoinDesk editor, who shared an extensive thread on Wednesday, Hanyecz was not only the first individual to make a commercial transaction using Bitcoins but also had a close relationship with Satoshi Nakamoto.

As a crypto investor, I’ve been following the latest developments in the Bitcoin community with great interest. And this year’s Pizza Day has taken on a new significance for me after the recent release of 120 pages of Satoshi’s emails to early Bitcoin developer Martti Malmi, also known as Sirius. These emails have brought up an intriguing question: was the first purchase using bitcoin really just a coincidence and a mere transaction for pizza?

As a crypto investor, I view Bitcoin’s value in terms of its exchangeability with other goods and services, similar to how I perceive the worth of traditional paper currencies.

As an analyst, I would rephrase it as follows: “Initially, when an individual publicly declares that they will prepare a pizza in exchange for one hundred bitcoins, they can essentially utilize bitcoins as a form of payment, given the demand for pizza and trust in their announcement. In turn, another user, such as a trusted friend who is also a hairdresser and offers fancy haircuts, might announce her acceptance of bitcoins as payment. This expansion in usage drives up the value of bitcoin, enabling purchases not only of pizzas but also of haircuts. Once bitcoins have gained sufficient acceptance, the pizza vendor could retire from the business while still being able to rely on their bitcoin savings.”

It’s intriguing that the initial Bitcoin purchase outside of peer-to-peer transactions involved buying pizza, considering Satoshi’s analogy.

According to Rizzo’s assessment, Hanyecz’s impact on Bitcoin goes beyond just demonstrating its capability for real-life transactions. He was the pioneer who translated Satoshi’s code for Apple’s OS, thereby enabling more users to operate the authentic Bitcoin software. Additionally, he was an active participant on the BitcoinTalk forum, addressing queries regarding the software and its design.

Nevertheless, there were differences in opinion between Hanyecz and Satoshi. Notably, Hanyecz is believed to be the pioneer in mining Bitcoin using GPUs, which granted him an advantage over those who were simply running the Bitcoin software on standard computers.

Back then, Satoshi Nakamoto initiated a fierce competition among Bitcoin miners, which is still ongoing (currently, Bitcoin miners depend on large-scale factories equipped with application-specific integrated circuits for proof-of-work mining). Initially, the user base was small, and the need to invest in expensive specialized equipment might have deterred potential network participants. Satoshi expressed concerns that this could discourage people from joining the decentralized system.

See also: What Is Bitcoin Pizza Day?

In simpler terms, Satoshi expressed that the use of high-end GPUs in Bitcoin mining could discourage participation from those without such equipment prematurely. However, he emphasized that this wasn’t about wealth distribution per se, but rather promoting more growth by involving a larger number of people in the process.

Approximately a week after his initial post on May 21st, Hanyecz brought up the topic of increasing the value of the Bitcoin offer. Eventually, 19-year-old Jeremy Sturdivant stepped forward and expressed his interest in completing the trade. “I just want to announce that I have completed the exchange of 10,000 Bitcoins for a pizza,” Hanyecz shared at the time.

Based on Rizzo’s account, Hanyecz initiated an open offer for the now famous “pizza swap” deal, potentially spending roughly $3 billion in current value on Papa John’s pizzas. A plaque reportedly exists at the Jacksonville, Florida, branch to honor this historic transaction.

As a financial analyst looking back on Hanyecz’s historic Bitcoin transaction, I can’t help but marvel at his unwavering perspective. Unlike some who might lament the vast sums spent on what seems mundane now, Hanyecz remains unfazed. In an interview with CNN, he simply stated, “Someone had to start it.”

As a researcher studying the world of cryptocurrency, I can’t help but notice that bitcoin has once more reached new heights, surpassing its previous all-time highs. And do you know what was the very first purchase made with this digital currency back in 2010? A pizza, making it the most costly pie ever sold in history.