Thirteen years ago, on May 22, 2010, a Florida-based programmer named Laszlo Hanyecz made history by purchasing two pizzas for 10,000 BTC. This event, now celebrated annually as Bitcoin Pizza Day, marks one of the most iconic moments in cryptocurrency history. But there’s more to the story—Hanyecz also played a pivotal role in the early development of Bitcoin technology, particularly through his invention of GPU mining.
The First Bitcoin Pizza Transaction
Laszlo Hanyecz wasn’t just an early Bitcoin adopter; he was an active contributor to the growing Bitcoin community. In a now-famous post on the Bitcoin Talk Forum, he offered 10,000 bitcoins to anyone who would order him two pizzas. At the time, Bitcoin had no established monetary value, and the idea of using it to buy real-world goods was largely experimental.
A fellow user took him up on the offer, and the trade was successfully completed. Hanyecz later estimated that throughout 2010, he spent around 100,000 BTC on various items including pizza and tech gadgets. Little did he know that those bitcoins would one day be worth billions of dollars.
The Birth of GPU Mining
Before mid-2010, Bitcoin could only be mined using central processing units (CPUs). That changed when Hanyecz introduced the first working method for mining Bitcoin with graphics processing units (GPUs).
On May 10, 2010, he published a post titled “Generating Bitcoins with Your Video Card,” sharing his open-source code that allowed GPUs to perform mining calculations. This breakthrough significantly increased mining efficiency—GPU mining was up to ten times faster than CPU mining. Almost overnight, the competitive landscape of Bitcoin mining changed.
Hanyecz mined a substantial amount of Bitcoin using his new method. Blockchain records show that his primary wallet held over 43,800 BTC at its peak in June 2010. This allowed him to spend freely on everyday items, including the legendary pizza purchase.
Satoshi Nakamoto’s Reaction
Perhaps the most intriguing part of this story is how Bitcoin’s mysterious creator, Satoshi Nakamoto, responded to Hanyecz’s innovation. Concerned about the centralization of mining power, Satoshi emailed Hanyecz and asked him to downplay the GPU mining discovery.
Satoshi argued that one of Bitcoin’s key appeals was that anyone with a basic computer could participate in mining. The shift to GPU mining, he feared, would lead to increased hardware requirements and discourage new users. In the email, Satoshi wrote:
“A major attraction for new users is that anyone can generate coins with a computer. GPU mining would limit incentives to those with high-end hardware. While it’s inevitable that GPU clusters will eventually dominate, I’d prefer to delay that arms race.”
Hanyecz respected Satoshi’s wishes and stopped actively promoting GPU mining, though the genie was already out of the bottle.
Legacy of Bitcoin Pizza Day
Today, Bitcoin Pizza Day is both a celebration and a cautionary tale. It symbolizes the real-world utility of cryptocurrency while reminding us of its volatility and unpredictable value growth.
Hanyecz himself has expressed no regrets about the pizza purchase. In interviews, he noted that at the time, he viewed Bitcoin as a fun experiment and a way to get “free food” through mining. His contributions—both technical and cultural—helped shape Bitcoin’s early community and technological direction.
Frequently Asked Questions
What is Bitcoin Pizza Day?
Bitcoin Pizza Day, celebrated on May 22, commemorates the first documented purchase of a physical item using Bitcoin. Laszlo Hanyecz bought two pizzas for 10,000 BTC in 2010.
Who invented GPU mining for Bitcoin?
Laszlo Hanyecz developed and shared the first method for mining Bitcoin with GPUs in May 2010. His innovation drastically increased mining speed and efficiency.
How did Satoshi Nakamoto react to GPU mining?
Satoshi expressed concern that GPU mining would lead to centralization and discourage new users. He asked Hanyecz to avoid promoting the method to delay a hardware arms race.
How much would the 10,000 BTC used for the pizzas be worth today?
The value fluctuates with Bitcoin’s market price, but at all-time highs, 10,000 BTC reached values exceeding $600 million USD.
Did Laszlo Hanyecz regret spending so much Bitcoin?
Hanyecz has stated that he does not regret the purchase. At the time, Bitcoin had no established value, and he viewed it as an experiment in digital currency usability.
Are there other early Bitcoin spenders like Hanyecz?
Yes, several early adopters used Bitcoin for small transactions, though Hanyecz’s pizza purchase remains the most famous example of Bitcoin’s use as a medium of exchange.
Whether you're new to cryptocurrency or a seasoned enthusiast, the story of Bitcoin Pizza Day offers valuable insights into the community-driven origins of digital assets. For those interested in learning more about Bitcoin’s evolution and mining history, you can explore more strategies available online.
Laszlo Hanyecz’s experiment did more than just prove Bitcoin could be used for real-world transactions—it inspired a generation of innovators and reminded everyone that even the smallest actions can make history.