Quick Facts
- In 2010, a programmer named Laszlo Hanyecz traded 10,000 BTC for two Papa John’s pizzas.
- At the time, the value of 10,000 BTC was approximately $25.
- Today, the value of 10,000 BTC would be over $1 billion.
The $1 Billion Mistake: A Lesson in Cryptocurrency and the Power of HODLing
In 2010, a small transaction took place that would change the course of history. Two Papa John’s pizzas, ordered by a programmer named Laszlo Hanyecz, were the catalyst for a mistake that would eventually be worth over $1 billion. This story has become known as the “10,000 BTC mistake,” and it serves as a poignant reminder of the importance of patience and HODLing in the world of cryptocurrency.
The Birth of a Legend
On May 22, 2010, Laszlo Hanyecz, a programmer at the time, was frustrated with the lack of places that accepted Bitcoin as payment. He decided to place an order for three large Papa John’s pizzas, using 10,000 BTC, which was a significant amount of cryptocurrency at the time. He tweeted about his intentions, hoping to find someone who would trade their Papa John’s pizzas for the 10,000 BTC.
To his surprise, he received several responses, including one from a user named Jeremy Sturdivant, who offered to trade his own Papa John’s pizzas for the 10,000 BTC. Hanyecz agreed, and the two made the trade. At the time, the value of 10,000 BTC was approximately $25, but as we now know, it would have been worth over $1 billion if Hanyecz had held onto it.
The Consequences of FOMO
Hanyecz’s decision to trade his 10,000 BTC for two Papa John’s pizzas is often cited as an example of FOMO (fear of missing out). In this case, Hanyecz was afraid that the value of Bitcoin would continue to decline, and he decided to hedge his bets by trading his cryptocurrency for something tangible.
However, this decision would come back to haunt him. As the value of Bitcoin began to skyrocket, Hanyecz realized that he had made a massive mistake. He was offered over $1 million for the two pizzas, but it was too late – the transaction was irreversible.
A Lesson in HODLing
Hanyecz’s story serves as a stark reminder of the importance of HODLing (holding onto) cryptocurrency. HODLing is a popular term in the cryptocurrency community, which refers to the act of holding onto one’s coins, even in the face of market volatility.
Hanyecz’s mistake was a result of FOMO, which is a common phenomenon in the world of cryptocurrency. Many investors make the mistake of selling their coins during market downturns, thinking that the value will never recover. However, as the story of the two Papa John’s pizzas shows, patience is often rewarded.
The Rise of Bitcoin Maximalists
Hanyecz’s mistake also contributed to the rise of Bitcoin maximalists, a group of individuals who believe that Bitcoin is the only true cryptocurrency and that all others will eventually fail. This group often cites the story of the two Papa John’s pizzas as an example of the importance of holding onto Bitcoin, even in the face of adversity.
Bitcoin maximalists often use this story to extoll the virtues of HODLing, arguing that those who sell their coins during market downturns will miss out on significant profits in the long run. They also argue that holding onto Bitcoin is the only way to ensure long-term wealth and financial security.
