What Was the Most Expensive Bitcoin Purchase Ever?

In the history of Bitcoin, there is one transaction that has become the stuff of legend, celebrated annually by the cryptocurrency community worldwide: the story of the two pizzas. While it may not be the largest Bitcoin transaction by dollar value today, it is widely considered the first-ever real-world commercial purchase using BTC, making it symbolically the most expensive.

On May 22, 2010, a programmer named Laszlo Hanyecz made a historic offer on the Bitcointalk.org forum. He wanted to buy two pizzas and was willing to pay 10,000 bitcoins for them. At the time, Bitcoin was a little over a year old, a niche hobby for a small group of cryptographers, and the coins were valued at just a fraction of a cent.

This article dives into the story behind this legendary purchase, its significance in Bitcoin's history, and explores some of the other large-scale Bitcoin transactions that have happened since.

The 10,000 BTC Pizza Transaction

Laszlo Hanyecz's forum post was simple: "I'll pay 10,000 bitcoins for a couple of pizzas.. like maybe 2 large ones so I have some left over for the next day." He specified his preference for standard toppings like onions, peppers, and sausage. For several days, his offer went unanswered, as the logistics of accepting a novel internet currency for a physical good were still new.

Finally, on May 22, a teenager named Jeremy Sturdivant (username "jercos") in the UK agreed to help. Sturdivant ordered two large pizzas from a Papa John's in Jacksonville, Florida, had them delivered to Hanyecz, and in return, Hanyecz sent him the 10,000 bitcoins. The deal was done. The pizzas cost Sturdivant about $25.

The Birth of "Bitcoin Pizza Day"

This transaction was a monumental proof-of-concept. It demonstrated that Bitcoin could function as a medium of exchange, bridging the gap between the digital and physical worlds. It was the first time Bitcoin was used to buy a tangible good, giving it a real-world valuation, however small at the time.

To commemorate this event, the cryptocurrency community celebrates May 22nd as "Bitcoin Pizza Day." It serves as an annual reminder of how far Bitcoin has come. The 10,000 bitcoins that were worth about $41 in 2010 have, at various points, been worth over $600 million. It's a fun, yet poignant, illustration of Bitcoin's incredible growth and the power of being an early adopter.

Was It Really the "Most Expensive" Purchase?

When we call the pizza transaction the "most expensive," we are speaking in terms of opportunity cost. Laszlo Hanyecz spent what would later become a fortune on a simple meal. By today's standards, it was an unfathomably expensive purchase. Hanyecz, however, has stated in interviews that he has no regrets, as he saw his action as an important step in helping to bootstrap the Bitcoin ecosystem.

In terms of sheer dollar value at the time of the transaction, there have been many, many larger purchases. The most expensive items and services ever bought with Bitcoin are often in the realm of luxury goods, real estate, and large-scale business transactions.

Other Famous Large Bitcoin Purchases

While the pizza purchase is the most famous, several other significant transactions have marked Bitcoin's journey as a medium of exchange:

• Real Estate: There have been numerous multi-million dollar real estate deals conducted in Bitcoin. In 2017, a property in Miami was reportedly purchased for approximately 1,600 BTC, valued at around $6 million at the time.
• Luxury Cars: The first car dealership to accept Bitcoin was Lamborghini Newport Beach in 2013. Since then, many high-end vehicles, including Teslas, Lamborghinis, and Ferraris, have been purchased with cryptocurrency.
• Private Jets: Some private jet charter companies and even manufacturers have opened their doors to Bitcoin payments, enabling transactions worth tens of millions of dollars.

The Largest Transactions on the Blockchain

Beyond commercial purchases, the Bitcoin blockchain has facilitated some of the largest value transfers in history. These are typically not for a single item but are movements of funds between exchanges, custodians, or large holders ("whales").

In 2021, a transaction of over $2 billion worth of Bitcoin was moved on the network. The most remarkable part of this was that the transaction fee was only about 0.000017 BTC, which was less than $1 at the time. This highlighted one of Bitcoin's core value propositions: the ability to move immense amounts of value across the globe, quickly and cheaply, without needing the permission of a bank or government.

The Evolving Role of Bitcoin as a Medium of Exchange

In its early days, the vision for Bitcoin was primarily as a "peer-to-peer electronic cash system." However, as the value of Bitcoin and its on-chain transaction fees grew, its narrative shifted. Today, Bitcoin's primary use case is as a store of value, or "digital gold."

For smaller, everyday payments, the industry has turned to Layer-2 solutions like the Lightning Network. The Lightning Network allows for instant, near-free Bitcoin transactions, making it practical to buy anything from a cup of coffee to an online subscription, fulfilling the original vision of Bitcoin as a transactional currency.

Frequently Asked Questions

Q1: What happened to the 10,000 bitcoins from the pizza transaction? Jeremy Sturdivant, the teenager who received the 10,000 BTC, reportedly spent them on travel and other expenses when they were worth a few hundred dollars. Like Hanyecz, he played a role in the early circulation of the currency.

Q2: Did Laszlo Hanyecz only buy pizzas once with Bitcoin? No. He continued to buy pizzas with Bitcoin, reportedly spending over 100,000 BTC in total on various goods. He was a key early contributor to the network, also being the first person to code a program that allowed for mining with GPUs.

Q3: What is the largest Bitcoin transaction in dollar value? The largest transactions are typically movements between exchange wallets or custodians. There have been several transactions valued at over $1 billion at the time they were made.

Q4: Can you still buy things with Bitcoin today? Yes. A growing number of merchants accept Bitcoin, both on-chain and via the Lightning Network. However, due to its price volatility and favorable tax treatment as property (in the US), many people choose to hold it as a long-term investment rather than spend it.

Conclusion

The story of the 10,000 BTC pizzas remains a cornerstone of Bitcoin's history. While technically not the largest purchase by dollar value, its symbolic weight as the first real-world transaction makes it, in the eyes of the community, the most expensive and most important purchase ever made.

It marks the moment Bitcoin transformed from an abstract idea into a tangible economic tool. Bitcoin Pizza Day is not just a celebration of two very expensive pizzas; it's a celebration of the journey from a fraction of a cent to a global asset, a testament to the vision and conviction of the earliest pioneers who saw the potential in a new kind of money.