A CRYPTO trader was left with an empty feeling in his stomach after forking out 10,000 Bitcoin for some pizza – only to discover its true value years later.
Unlucky American Laszlo Hanyecz gleefully paid for the pair of Papa Johns’ pizzas 14 years ago as part of the first “real world” purchase using cryptocurrency.
As the time has gone on, the worth of each pizza – originally just $20.50 (£16) – has skyrocketed with 10,000 Bitcoin now being worth a mouthwatering $1billion.
A fascinating website has spent over a decade studying the rising cost of the takeaway through the Bitcoin Pizza Index.
Laszlo handed over a whopping $1,033,709,259 (£810,520,329) for the two pizzas, according to the worth of Bitcoin today.
Each individual pizza would be worth almost $517,000,000 (£405,000,000).
A single slice would also be a whopping $64,606,000 (£50,657,000)
The Bitcoin Pizza Index goes even further into the nightmarish foodie breakdown as it even details the gargantuan cost of each separate topping.
A green pepper is over $2,500,000 (£1,976,879) with even a tiny black olive leaving a $2,200,000 (£1,729,769) dent in the wallet.
The pizzas were also believed to feature a host of tasty meats which all came out a cost.
A piece of bacon would be worth nearly $10,000,000 (£7,660,405) with the variety of salami, pepperoni and sausage all being over $4,500,000 (£3,580,000).
Despite him giving up the life-changing cash over a weekly takeaway Laszlo insists he has regrets over the impulse purchase.
He said: “I don’t regret it. I think that it’s great that I got to be part of the early history of Bitcoin in that way.
“People know about the pizza…everybody can kind of relate to that and be [like] ‘Oh my God, you spent all of that money!'”
Florida local Laszlo was one of the earliest public contributors to Bitcoin’s software when it was barely a year old back in 2010.
He even coded a programme that made it possible for fans to mine the currency using their computer’s graphics cards (GPU).
On May 18, 2010 he made a post on popular crypto forum bitcointalk.org asking if anyone would be willing to trade a Papa Johns pizza for his 10,000 coins.
Four days later he connected with Jeremy Sturdivant who set up the bizarre transaction.
Laszlo would even boast about the buy online and share pictures of his two freshly cooked pizzas at the time.
His payment method quickly drew attention online once the price of Bitcoin started to soar.
It even started a national holiday among so-called “finance bros” who designated May 22 as national Bitcoin Pizza Day.
The bold move even helped to spark a move towards paying with non-physical cash.
Today several companies do actually accept Bitcoin as legal tender in certain regions.
Starbucks, Subway, Burger King and even Pizza Hut in Venezuela all take Bitcoin, according to Now Payments.
It comes as the price of Bitcoin reached its highest ever valuation today as it now sits above $100,000 for the first time.
A massive 45 per cent hike has wowed financial experts ever since Donald Trump’s sweeping election victory on November 5.
Risks of crypto investments
BELOW we round up five risks of investing in cryptocurrencies.
- Consumer protection: Some investments advertising high returns based on cryptoassets may not be subject to regulation beyond anti-money laundering requirements.
- Price volatility: Significant price volatility in cryptoassets, combined with the inherent difficulties of valuing cryptoassets reliably, places consumers at a high risk of losses.
- Product complexity: The complexity of some products and services relating to cryptoassets can make it hard for consumers to understand the risks. There is no guarantee that cryptoassets can be converted back into cash. Converting a cryptoasset back to cash depends on demand and supply existing in the market.
- Charges and fees: Consumers should consider the impact of fees and charges on their investment which may be more than those for regulated investment products.
- Marketing materials: Firms may overstate the returns of products or understate the risks involved.
It’s very important only to invest in any form of cryptocurrency if you understand it.
Remember, there’s no guarantee you can convert cryptocurrency into real cash and investing is not a reliable way to make money.
That’s because it can be highly volatile too – meaning your cash could soar or plummet at any given moment.
There are lots of things to look out for but, most importantly if something looks too good to be true, it probably is.
Always check with a trusted friend if you’re not sure about something as well – they may be able to spot something you haven’t.
Also, don’t always trust a glowing website and perfect reviews – fraudsters can get quite smart with these things.
For more on how to avoid scams, read our guide here.
