Why a Bitcoin miner wouldn’t mind paying 10,000 BTC for a few pizza

Bitcoin boosts savings and keeps your money safe and without amortizing it over time. At least this is one of the dominant narratives in the ecosystem.

Despite the ‘HODL’ meme being spread by calling its owners not to sell their bitcoin even if the price drops, it really is The first Bitcoin use case was transactional.

The first commercial exchange of this cryptocurrency was 2 Pizza Cambio de 10,000 Bitcoin (BTC)paid by programmer Laszlo Hanyecz on May 22, 2010, which today equates to about $300 million.

Hanyecz was also one of the first miners on the Bitcoin network, allowing him to Accumulate amazing amounts of BTC daily. However, it wasn’t the abundance of bitcoin that drove Hanyecz to spend it.

What really prompted Laszlo to offer this 10,000 BTC offer for some pizzas was the desire for it Promote Bitcoin as a medium of exchange.

At the time, Bitcoin worked on the same monetary fundamentals that made it a counter-response to the paper economy. However, few users at the time were just learning about it and saw this protocol as nothing more than a curious piece to play with.

In fact, in 2018, Laszlo again boosted transaction usage from Bitcoin by buying 2 pizzas again, but this time through Lightning, which CriptoNoticias reported.

“The goal was to play with the c-lightning client and do more than just trade satoshis. Perhaps pizza restaurants will have their own Lightning contract through which channels can be opened directly,” he said on the Bitcoin developer mailing list.

Laszlo Hanyecz with his kids after buying 2 pizzas through Lightning in 2018. Source: Laszlo Hanyecz

Laszlo Hanyecz: Making pizza with bitcoin code

Laszlo was also a bitcoin miner and by 2010 the network was very easy to mine It can be performed using a CPU or a desktop computer, And doing it better every day was something that sparked the curiosity and creativity of this programmer and others.

To the extent that Laszlo has the advantage of being the first to implement GPUs or GPUs for miningbecause these teams have more power to do test work (proof of work). Shortly thereafter, this device became obsolete and Bitcoin switched to ASICs, which are highly specialized and power consuming devices.

“Pizza became more popular than I expected so I then bought as many pizzas as I could. Except for a few other transactions, I spent everything I was mining on. As everyone knows, the difficulty increases to match the hashing power, so in the end mining is no longer worth it for me. me anymore.

As far as I know, I was the first to launch a GPU miner. You contributed to the power of hashing at that time […]. I used to be the lead admin of the Mac OS Bitcoin mining software, but there are others who are interested in that now […] That was in May 2010. There might have been other people mining privately, I think. […]. The way I see it, I’ve been helping develop an open source project, and I’ve been making pizza with my own code. “

Laszlo Hanjic, programmer.

Two pizzas, the cornerstone of the Bitcoin economy

While early bitcoin miners were able to amass thousands of bitcoins using their CPU until their hardware became obsolete, Today there is a giant industry around this activity.

Miners no longer rely on accumulated bitcoins to support their operations, but rather deal with loans and energy providers and outsource their services to other clients.

What started from the comfort of home for those who used bitcoin in their early years, Now it has large industrial structures, companies listed on the stock market.

However, the spirit of encouraging individual responsibility persists, as many miners have been able to adapt bitcoin mining to their homes once again.

On the other hand, what Laszlo could have dreamed of at that time has become a reality: Bitcoin is a global payment network.Billions of people around the world have heard of it, even if they haven’t used it.

Bitcoin has become a powerful financial tool for financially isolated countries, so Its citizens can conduct transactions without restrictions and without censorship. It has become a legal tender in El Salvador, as well as an asset that is allowed to be traded in others.

In addition, it has become an asset of interest to large investment entities, as well as a practical means for individuals who just want to buy a pizza, like Laszlo 12 years ago.