We celebrate Bitcoin pizza day on May 22 every year. This year marks the 11th anniversary of the first Bitcoin transaction, in which a man located in Florida named Laszlo Hanyecz paid for two pizzas with cryptocurrency. The day has become part of the tradition because of the transaction, where this man paid 10,000 Bitcoins, which today is worth over $350 million, for the two pizzas.
Laszlo Hanyecz reached out for help on bitcointalk forum.
“I’ll pay 10,000 Bitcoins for a couple of pizzas. Like maybe 2 large ones so I have some leftover for the next day. I like having leftover pizza to nibble on later. You can make the pizza yourself and bring it to my house or order it for me from a delivery place, but what I’m aiming for is getting food delivered in exchange for Bitcoins where I don’t have to order or prepare it myself, kind of like ordering a ‘breakfast platter’ at a hotel or something, they just bring you something to eat and you’re happy!”
A British man took up this offer and bought the two pizzas for Laszlo in exchange for the 10,000 Bitcoins, by paying $25 for the pizzas, while 10,000 Bitcoins were worth around $41 at the time.
Bitcoin is by far the most popular cryptocurrency and its price has a strong impact on the crypto market.
CryptoCurrency is a digital currency that can be used to buy goods and services founded in 2009 by an individual named Satoshi Nakamoto. It came into being when a major fund crisis hit the market. The intention behind creating a decentralized digital encrypted currency was to introduce a new way of payments that could be used internationally, without having any government financial institution backing it, and with minimal or no restrictions. Also, the need to make the world see that there are more options for them in market other than the conventional commercial ones that they can take part in or benefit from it.
Initially, the society did not trust this payment mode, however, over time that concept has changed and many companies already use it, they allow payments of their products and services with these virtual currencies, and few have created their own.
The most renowned Crypto Currencies are as follows:
How does Bitcoin Crypto Currency work?
Bitcoin is transferred between peers to peers, there is no middle man involved like banks or any other institution. Transactions are recorded on a digital public ledger which is called a blockchain. These transactions and ledger are encrypted using cryptography to secure them. It is decentralized, which means it is controlled by users and computer algorithms and not a central government.
Moreover, transactions are sent between peers using software called cryptocurrency exchange. The person creating the transaction uses the crypto exchange to transfer balances from one account to another. Few famous crypto exchanges are coin base, binance, ledger nano, and trezor. To make a transfer, a funds password, what you can say a private key is required. Then the transactions made between peers are encrypted and then broadcast to the crypto currency’s network and adds to the public ledger. Transactions are then recorded in the public ledger by a process called mining. The transaction amounts are public, but these transactions are encrypted. Each transaction has a unique set of keys and whoever owns it, is the owner of that particular amount of that cryptocurrency.
In the past, year during the pandemic we saw a rapid increase in cryptocurrency markets, mainly Bitcoin as a fair amount of the population saw the devolution of conventional currency in coming years, and investing in cryptocurrency seems promising, though it is highly volatile. If we compare it to other financial institutes, no institute will give a return up to 50 times in a span of 1 to 6 months.
Status of Bitcoin Crypto Currency in Pakistan
Cryptocurrencies are not officially regulated in Pakistan, however, it’s not illegal or banned. SBP governor has stated in his recent interview with CNN that they are studying it closely. So there might be a chance for cryptocurrency to get established in Pakistan in the coming years. Being said that Bitcoin is increasing its popularity in Pakistan as it is the most powerful crypto currency compared to others and Binance, is now the fourth most downloaded app in Pakistan