Tuesday, April 9, 2013

Meet the $2 Million Bitcoin Pizza

pizzaMeet the $2 Million Bitcoin Pizza:
At right, a verified snapshot of 10,000
bitcoins of tomato sauce, peppers, and onions circa mid-2010. These
two pizzas are generally acknowledged to be the first tangible
goods purchased with bitcoins, the online crypto-currency.
Floridian Laszlo Hanyecz thought it would be "interesting" to be
able to say he paid for a pizza in bitcoins. He worked out a deal
where he transferred 10,000 of his bitcoins to a guy in
England, who ordered him two pizzas from Papa Johns.
Today,
one Redditor notes,
those 10,000 bitcoins would be worth about
$2.3 million, thanks (in part) to folks fleeing unstable and
politically risky state currencies in Cyprus and elsewhere
.
Some
news outlets
are covering this as a "doh!" story. But these
pizzas were a huge publicity boon for Bitcoin, contributing to the
success of the currency today. If Lazslo had been a hoarder,
perhaps his bitcoins would be worth very little now. Cashing in
bitcoins for pizza when they were worth a fraction of a cent each
is not obviously smarter or stupider than selling now would be,
with bitcoins trading at $234. It's a bet on which way the market
is headed, that's all.
And we all know there are moments in life when a pizza today is
worth more than $2.3 million in a couple years. We don't know
Laszlo. (Or the small child looking to nab a slice in the image
above.) Maybe this was one of those days.
(Check out the official Bitcoin pizza index ticker, and check
out Vice's
in-depth coverage
of the story from back when the pizzas were
only $750,000.)