We all know the story – in May 2010, Laszlo Hanyecz, a Florida programmer who was involved in the early development of Bitcoin, bought two pizzas for 10,000 BTC. Before there were reliable cryptocurrency exchanges, Bitcoin trades were done the only way possible – direct communication. In fact, in the first year of Bitcoin’s existence, most transactions were conducted through discussion forums and internet relay chat rooms.
Bitcoin is a brilliant solution to a problem people have tried to solve for generations, and while there will always be skeptics, the cryptocurrency industry is a far less risky area of investment than it was a decade ago.
Around then BTC price Was worth less than a dime, so any meaningful Bitcoin trade involves transfers of thousands of BTC – worth millions today. But if the people who traded cryptocurrencies in the early days really believed in the technology behind it, why should they sell when everything could one day turn into a fortune? To be honest, this is what most early investors did – HODL.
Today, those who held onto their digital assets take pride in the fact that they persevered and apparently got rich for the outside world overnight. Blockchain technology has grown by leaps and bounds over the past decade, and as the industry brings out innovative applications year after year, there is still so much room for growth.
However, while early investors in this space are celebrated for making it big by staying in place, it is those who spent Bitcoin when it was worthless that gave BTC the fuel it needed to get to the moon . Purchases like Laszlo’s have fueled today’s burgeoning Bitcoin economy, and because people spent assets back then, they’re worth nothing at all today.
The Singapore based Phemex The exchange recently amassed 1 million users on its global crypto trading platform and saw the number of traders on the exchange grow 156.9% in the first quarter of this year alone. Phemex also reported a 465.2% increase in trading volume this quarter compared to the first quarter of last year and has been constantly adding features, updating the platforms and working with the community to ensure the best experience.
With Bitcoin Pizza Day approaching this month, the team at Phemex has also created a lucrative opportunity for both Laszlo Hanyecz himself and the Phemex community as a whole. Hanyecz reportedly has no misunderstandings or regrets for his actions, but while the Bitcoin programmer is best known for his pizza purchases, little is known about his significant contributions to the Bitcoin mining algorithm.
Before Bitcoin Pizza Man hit the market, the only way to mine the digital asset was to use a computer processor or CPU – much slower than the application-specific integrated chips (ASICs) used today. However, Laszlo has developed a program that enables people to mine Bitcoin using their graphics cards (GPUs), which are much more powerful than CPUs for mining cryptocurrencies. Soon after, the race for more computing power had begun.
Nowadays, entire warehouses packed with ASIC-based systems are running with almost no downtime to keep the network afloat, but it was the noticeable increase in efficiency from the move to GPUs that started it all. Laszlo is a relatively unsung hero of the Bitcoin world, and to change that, Phemex came up with an interesting way to celebrate the anniversary of his purchase.
In order to give something back to the man who made the first real Bitcoin transaction, Phemex Laszlo offers the option to spend his 10,000 BTC, but this time he makes a profit. Recently, the Singapore-based exchange launched its Earn Crypto platform – an asset management service that enables traders to receive up to 10% APY in interest up to 1.5 million USDT.
By depositing 10,000 BTC on Phemex’s Earn Crypto platform on May 22, Hanyecz would make nearly $ 110,000 in a single day – and he’ll keep it all. At the moment the Phemex team is still trying to let him know, but the platform is open to any user who wants to take advantage of the offer.
In the months that followed, Hanyecz bought pizza nine more times and spent a total of 100,000 BTC in one summer. According to a post in the original Bitcointalk thread, the only reason he stopped was because the popularity of the network meant he couldn’t generate thousands of tokens from his home desktop every day. 10,000 Bitcoin is a lot of money, but the impact of his purchases extended well beyond his dining room.
The main focus here shouldn’t be that he issued tokens worth potentially millions or that the pizzas weren’t worth it. The point here is that he bought something with bitcoin. In hindsight, it was definitely worth the money to spend back then, and at events like Phemex’s Bitcoin Pizza Day celebration, he’s probably glad he did.