Bitcoin Pizza

Brazilian city with 1.5 million residents adds ‘Bitcoin Pizza Day’ to its festivities calendar

The Brazilian city of Porto Alegre has officially added Bitcoin Pizza Day to its annual festivities calendar, which will be marked every May 22.

The decision was made after councilors Jessé Sangalli and Alexandre Bobadra participated in a commemorative event on May 22, 2022, where they gained knowledge on the significance of Bitcoin (BTC) alongside the milestones achieved over the years, LiveCoins reported on October 12.

According to councilman Sangalli, who presented the bill, his goal was to drive visibility to the decentralized finance innovations in the city with about 1.5 million people. The city’s mayor Sebastião Melo is credited for approving the bill towards the end of August.

Omg I cannot believe what me and my homie from Porto Alegre just accomplished.

We literally made the “Bitcoin Pizza Day” part of our city’s official calendar (1.5 million population) pic.twitter.com/nbGne7ee2Q

— 🫡 Akva @ PARIS | ◧-◧¬.eth (@Akva556) August 26, 2022

“This PL will bring visibility to cryptocurrencies and signal that our city supports technological innovation and has its eyes on the future. At worst, the PL is innocuous and even helps to take time off the agenda of other legislation that generates costs to the treasury or reduction of freedoms and, at best, will help bring the cryptocurrency debate to the general public,” said Sangalli.

The origin of Bitcoin Pizza Day

Notably, Bitcoin Pizza Day remembers the date when a BitcoinTalk forum user, identified as Laszlo Hanyecz, offered 10,000 BTCs for two pizzas on May 22, 2010. At the moment, Bitcoin was valued at $0.0025.

By press time, the amount would be valued at around $207 million. Consequently, the day has gained prominence among crypto proponents since it was the first time Bitcoin was utilized as a medium of exchange.

It is worth mentioning that Bitcoin has since evolved and is being incorporated into payment systems globally. However, the asset’s major win emerged after El Salvador became the first country globally to declare Bitcoin a legal tender.

In this line, several countries have contemplated going the same route, but the talk has since cooled down thanks to the extended bear market. At the same time, Bitcoin can potentially be used as a payment, considering that different jurisdictions are working on laws to bring clarity to the crypto sector.

   
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Bitcoin Pizza Day: Celebrating The $300-Million Pizza Order – And Other Fun Facts

What a peculiar combination: bitcoin and pizza. Nonetheless, an entire day has been designated for each of these occasions. All of this is done in recognition of the innovations that crypto has brought to the world.

Since their creation, cryptocurrencies have dominated the global virtual currency landscape, and now everyone is mining this coin or seeking to invest in crypto.

Investors and entrepreneurs are looking for an opportunity to trade in cryptocurrencies ever since the first crypto trade became viral.

Suggested Reading | MicroStrategy Stock Rallies 10% As CEO Saylor Predicts BTC Will ‘Go Into The Millions’

Pizza: First Physical Item Bought Using Bitcoin

Previously, cryptos were not accepted as a form of payment, but after a man from Florida paid for his meal with bitcoins, this topic was all people could talk about.

Bitcoin Pizza Day commemorates the day in 2010 when Laszlo Hanyecz, a programmer and BTC miner from Florida, used the crypto to purchase two pizzas from Papa John’s. It occurs every year on May 22. It is the first physical item purchased with the first decentralized digital currency.

This is how the pizzas looked like at the time they were ordered in 2010 (Bitcoin Magazine).

10,000 BTC Paid For The Pizza Is Worth $300 Million Today

Hanyecz paid 10,000 BTC for his renowned pizza purchase. This quantity was worth around $41 at the time. The value of the crypto has grown rapidly over time. Currently, 10,000 BTC are valued close to $300 million.

Obviously, the value of these same bitcoins increased significantly during the subsequent decade. In fact, if Hanyecz had supposedly sold his whole hoard at bitcoin’s all-time high of $68,990, he would have earned around $690 million — enough to purchase 46 million large Papa John’s pizzas for $15 each.

Hanyecz told Anderson Cooper in a 2019 interview with CBS that the purchase “made [bitcoin] real for certain people. Indeed, it did for me.”

Pizza Order Hogged The Headlines

Because of the price of bitcoin, Hanyecz’s story became global in the United States, with The Wall Street Journal, ABC News, Slate, and TechCrunch joining TechCrunch and Slate in popularizing the transaction.

On the same anniversary of the first Bitcoin pizza order, festivities continue for what has become a staple of crypto culture.

BTC total market cap at $557 billion on the weekend chart | Source: TradingView.com

It’s A Celebration!

PizzaDAO, the decentralized blockchain project that aims to link pizza lovers around the world with the technological possibilities of Web3, is celebrating Bitcoin Pizza Day on Sunday in traditional fashion.

The group will conduct commemorative events at 100 pizza outlets in more than 75 nations, including Argentina, Australia, Canada, Britain, South Korea and the United States, to name a few.

Bitcoin Pizza Day will also be celebrated by Huobi Global, one of the world’s biggest digital asset exchanges, with a special Primebox deal.

From May 19 through May 29, users can participate in the special occasion’s Primebox promotion for a chance to win a portion of the 50 BTC prize pool and other NFT awards.

The Numbers Are Growing

Meanwhile, more than 15,000 establishments worldwide already accept cryptocurrency as payment.

Movies, clothing, basketball tickets, airline packages, hotel bookings, and video games are among the items that can be purchased using cryptocurrency.

Suggested Reading | UnicornDAO Rallies For Women And LGBTQ Artists; Raises $4.5 Million

Featured image from Reddit, chart from TradingView.com

   

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Celebrating Bitcoin Pizza Day With Knoxville Bitcoin Network

Knoxville Bitcoin Network will be hosting a Bitcoin Pizza Day Meetup on March 22, 2022. This idea was brought up in our group chat and the event will serve as a way to pay homage to the legend of Bitcoin Pizza Day.

For those unfamiliar with Bitcoin Pizza Day, this is the day the first Bitcoin transaction was made in exchange for another real world item: pizza. On May 22, 2010, Laszlo Hanyecz paid someone 10,000 bitcoin to order him two large Papa John’s pizzas. Yes, you read that right, 10,000 bitcoin.

As fellow Bitcoiners, we are also hoping to use this Sunday as a way to not only gather local Bitcoiners to join us in eating delicious pizza (which will be paid for in bitcoin), but to also orange-pill the staff of a locally owned and operated pizza place in Knoxville, Tennessee. Continuing bitcoin adoption is paramount, even if it’s one small pizza-shop owner at a time.

More than a decade has passed since the original Bitcoin Pizza Day, and for some people it is inconceivable to even spend 1 satoshi (the smallest unit of bitcoin) on anything for fear of the value of the satoshi being much higher in the future. (Those two pizzas from 2010 are now worth $302.6 million at the time of writing.) However, we believe that purchasing pizza with bitcoin by Hanyecz is a vitally important part in the history of Bitcoin for several reasons: This purchase manifested the idea that we could have a monetary network in which goods and services can be purchased with bitcoin, while also opening up an entire new set of ideas and possibilities for what Bitcoin could achieve if enough people began to adopt it. With such a bleeding-edge use of an already nascent technology, Hanyecz — although missing out on over $300 million in today’s funny money — was crucial in allowing further progression of bitcoin as a monetary asset with a real world, measurable value. For this, we thank you.

If you zoom out, you, too, will begin to realize that even spending bitcoin worth $30,000 on pizza isn’t worth it in 10 years, unless you replenish your satoshis after consumption. Twelve years ago, two pizzas cost 10,000 bitcoin; today, a large pizza worth $20 only costs you roughly 0.0006 bitcoin, or 60,000 satoshis. Quite a stark difference from 12 years ago! The question then becomes, what does a pizza cost 12 years from today when priced in bitcoin? However, it is important to spend your bitcoin, just as you would use a fiat currency, and with Lightning this is now more of a reality than ever before. As a Bitcoiner, it is a responsibility to support anyone who is willing to accept bitcoin, and yes, this means spending it. The more user touch points a non-Bitcoiner has with a slick user interface, user experience and instant settlement, the more this “Bitcoin thing” begins to make sense to them. The value add is real, and the atmosphere has a palpable feel of excitement — this is the magic of Bitcoin adoption in real time. Hanyecz took a proverbial bullet for all of us, but in doing so, allowed the maturation of the hardest money on Earth to continue. This Sunday, we pay our respects!

This is a guest post by Shane Kotz. Opinions expressed are entirely their own and do not necessarily reflect those of BTC Inc. or Bitcoin Magazine.

   

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7 Surprising Facts About Bitcoin Pizza Day

May 22 is now forever known as Bitcoin Pizza Day, the holiday marking the date in 2010 when the first real-world good was bought with the first decentralized digital money.

Yet like every holiday, be it Thanksgiving or Valentine’s Day, Bitcoin Pizza Day might say more about those celebrating it today than any of the actual historical facts. Indeed, there remain those who view the holiday as passé or even against the values of the Bitcoin community.

What remains true is that by May 2010, Bitcoin had a small, but growing economy, one where bitcoin were still mostly traded peer-to-peer and on some small exchanges.

Eager to push the frontier of Bitcoin commerce further, Laszlo Hanyecz, an early developer and miner, put out the call that he was willing and ready to pay 10,000 BTC for two pizzas, should someone be willing to take him up on the trade.

Bitcoin user Jeremy “Jercos” Sturdivant would agree to the terms, and two Papa John’s pies would arrive at Hanyecz’s house shortly thereafter. History was made — but some supporting facts have been lost to time.

In honor of the 11th anniversary of Bitcoin Pizza Day, we’ve compiled a list of lesser-known facts about what’s perhaps the most famous of Bitcoin holidays.

At this year’s bitcoin price high of $63,000, the two pizzas were worth $630 million.

1) 10,000 BTC Was Worth Just $41 At The Time Of Purchase

Though data on the early Bitcoin economy is getting hard to come by, according to Bitcoin user ender_X, Hanyecz could have traded his bitcoin on an exchange for U.S. dollars … about $41 to be exact. Should the figures be accurate, that puts the price per bitcoin at roughly $0.004 — or four-thousandths of a penny — at the time of sale.

While that figure isn’t exactly zero, the price was low enough for ender_X to think Hanyecz might be getting the better of the deal, his post ending with the quip — “good luck on getting your free pizza.”

2) Hanyecz Had To Wait Four Days To Get His Pies

Sure, it’s not as impressive as Satoshi waiting nearly 11 months for bitcoin to establish a price, but by conventional food delivery standards, Hanyecz waited a while for his order.

In fact, Hanyecz first posted on the Bitcoin.org forums on Tuesday, May 18, at the time writing:

“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. I like having left over pizza to nibble on later … If you’re interested please let me know and we can work out a deal.”

Even so, he didn’t end up getting his pizza until Saturday. By Friday, some were even led to reach out about Hanyecz’s health, with user BitcoinFX asking if he was “getting hungry.”

“I just think it would be interesting if I could say that I paid for a pizza in bitcoins,” Hanyecz replied.

Jercos would help him complete the delivery the next day, the transaction taking place at around 2:16 p.m. EST, according to records supported by Bitcoin Talk.

3) Hanyecz Bought More Than Two Pizzas For Bitcoin

Hanyecz didn’t just stop with two pizzas, however. Enticed by the response, Hanyecz sought to push the limit in June, adding to his post that the deal was “an open offer.”

“I will trade 10,000 BTC for 2 of these pizzas any time as long as I have the funds (I usually have plenty),” he wrote on June 12. “If anyone is interested please let me know.”

Rumor has it that there were other pizza-order exchanges, and there’s some evidence to hint this might be the case, with Hanyecz bringing his open offer to a close in August.

“Well I didn’t expect this to be so popular but I can’t really afford to keep doing it since I can’t generate thousands of coins a day anymore,” he wrote. “Thanks to everyone who bought me pizza already but I’m kind of holding off on doing any more of these for now.”

That’s not to say he put his pizza-buying past behind him fully. In 2018, Laszlo became the first person to buy a pizza over the Lightning Network, though he paid just 0.00649 BTC at the time.

4) Jercos Eventually Sold His Bitcoin

As the Bitcoin Pizza Day holiday grew, it wasn’t long before Jeremy “Jercos” Sturdivant would be thrust back into the limelight. He’d give his only interview to a website called “Bitcoin Who’s Who” in 2015, five years after the trade.

To the likely dismay of current HODLers, Sturdivant said at the time “a currency is meant to be spent,” noting that the 10,000 BTC he received “made it back into the economy quickly” by the time they were worth about $400 in total.

“Naturally there will always be people hoarding coins, trying to get rich, and quite a few people did get quite rich, but they wouldn’t have got that way without economic growth allowing it,” he said, noting he felt Bitcoin was meant to be more akin to a PayPal or Stripe.

Sturdivant added some other notable details about the transaction, which he says was finalized over IRC while noting he was just 19 years old at the time of the trade.

5) Bitcoin Pizza Day Wasn’t Widely Celebrated At First

While Bitcoin Pizza Day is widely known today, records about any celebrations are scarce before 2014. That isn’t exactly surprising, as before 2013 awareness of Bitcoin was low.

It appears that Hanyecz’s story was popularized in part by a New York Times article and subsequently boosted in 2014 by a blog and tweet from the @Bitcoin twitter handle.

Due to the price of bitcoin, then testing $1,000, the story went national in the U.S., with major media outlets like ABC News joining TechCrunch, Slate and The Wall Street Journal in popularizing the transaction.

Still, as on display in the WSJ post, there was a certain slant taken, with the holiday popularized as a way to scold “bitcoin hoarders” who wanted to use the technology as a store of value as opposed to a payment method, a tension among users that continues to this day,

6) Bitcoin Pizza Day Wasn’t The First “Bitcoin Holiday”

That’s right, Bitcoiners have been creating holidays for almost as long as the technology has been around, the first commemorative date set in 2011.

At the time, Bitcoin users were keen to mark the disappearance of Bitcoin creator Satoshi Nakamoto, who had recently stepped down from his role as project lead, declaring April 28, 2011, “Satoshi Disappear Day.”

“I propose we make a bitcoin holiday in honor of our legendary anonymous founder and to observe the fact that the bitcoin community will be just fine after the inventor of bitcoin left,” wrote user Kiba at the time.

Though Bitcoin Pizza Day occurred a bit earlier, it took some time for it to become a holiday, most likely because the price had yet to really rise. It’s worth noting also that Bitcoin Pizza Day in some ways seems to coincide with the “Bitcoin for payments” narrative pushed by industry businesses from 2014 through 2016.

7) You Can Still See The Pictures Of The Real Bitcoin Pizzas

Wondering what multimillion-dollar pizzas actually looked like? Wonder no more.

Thanks to Hanyecz’s penchant for photography, we have well-kept records of just what these expensive pies looked like at the time they were eaten in 2010.

Hanyecz posted a total of five pictures of his food, which appear to have a variety of less than traditional toppings, including olives, jalapeños, whole tomatoes and more. 

   

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Bitbuy Is Serving The Hottest Deal For Bitcoin Pizza Day – Get a FREE $100 when you sign up & fund your account. T&Cs apply

Disclaimer: The following article is part of Cryptonews Deals Series and was written as a promotional article in collaboration with the sponsor of this offer. If your company has an exclusive promotion that you would like to share with our readers, we invite you to reach out to us. Let’s build together.

Get this deal while it’s hot! New users have 48 hours to claim their free money. Starting Sunday, May 22, Bitcoin Pizza Day, as a new user it only takes two steps to get $100 in your BitBuy Account. It’s easy as pie!

Step 1.) Open an account with Bitbuy and fund it with $250.

Step 2.) Bitbuy will throw on a ‘free topping’ worth $100 for Bitcoin Pizza Day!

A little background about BitBuy—

If you haven’t heard of Bitbuy, you should definitely check them out! Bitbuy is the most trusted exchange in Canada. They’re the most trusted exchange in Canada. They store all assets in cold storage wallets offline, unlike most exchanges. Since your assets aren’t hanging out online, they are safe from cyber attackers. When assets are in cold storage wallets they’re still available for you to move on or off of the exchange as you please.

Bitbuy snagged the most trusted exchange title from their commitment to compliance. The Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) regulates the exchange. Bitbuy is also a member of The Canadian Securities Administrators. Bitbuy is also known for the security of its exchange. Specifically, they are noted for storing assets in cold storage wallets offline. Bitbuy’s cold wallet storage feature is one that propelled them to compliant stardom. Having a title of being compliant with regulations is only one perk to using Bitbuy. The exchanges’ users have peace of mind that Bitbuy is insured. Thus, as are the assets stored in the cold storage wallets that Bitbuy uses.

Bitbuy is registered and in compliance with Canada’s laws on the purchases, holding, trading, and sales of cryptocurrency, they are able to ‘cut out’ the middleman that most exchanges have to use. Transaction fees are lesser on Bitbuy compared to other exchanges. This is because of the regulatory framework that other exchanges have to bend around. This means that other exchanges use various means to complete crypto purchases, execute trades or store your assets. Since Bitbuy is 100% compliant they are able to cut these fees out of the equation. This allows them to handle all processes in-house. Thus passing savings along to you!

Want to learn more about Bitbuy’s various advantages and features? We’ve got an in-depth guide to the exchange here!

What is Bitcoin Pizza Day?

In 2010 there was a Florida college student who loved pizza very much. He wanted to use his BTC supply to purchase his favorite food, pizza. This was actually the first Bitcoin transaction made by a person to purchase a commercial good. BTC was worth about $.0004. The man made a post in a BTC forum stating that he’d pay upwards of 10,000 BTC for a pizza. A few days later someone saw the ad and delivered him a few Papa John’s Pizzas. A few pizzas in exchange for a (now) whopping 40,000 BTC, which was worth about $40 at the time.

And so we have it, every year on this day that the first commercial purchase using BTC was made is celebrated. We have no intent to rub salt in old wounds of the man who spent $11,89,639,600 (calculated with BTC’s price today) on a few pizzas. Bitbuy is spreading the BTC (and pizza) love in the form of free money to celebrate this coveted trade holiday.

For Bitcoin Pizza Day, Bitbuy knows what we really want… Free Money!

If that introduction to Bitbuy and backstory on Bitcoin Pizza Day wasn’t appealing enough, here’s yet another reason to become a huge fan of Bitbuy. Here we have a solid exchange whose credentials are enough for anyone to want to use them. Yet, they’re not too proud to serve up well-incentivized deals. And to have a little fun in doing so by celebrating Bitcoin Pizza Day. For new users, a few simple steps, i.e.; Setting up an account and adding $250 will get you an automatic $100 gift from Bitbuy. How much do we love trusted, secure exchanges that throw out the occasional amazing deal!?

As this promo is in celebration of Bitcoin Pizza Day, May, 22, you only have 48 hours to catch this deal. You do not want to miss out on an opportunity for free money on a truly exceptional crypto exchange!

   

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Crypto Industry Celebrates as Bitcoin Turns 14 Today

It is a milestone that the crypto community can always look forward to. A birthday to celebrate as you’re still cleaning up after your New Year’s Eve party. So get the balloons out because today is the day Bitcoin turns fourteen. To help you celebrate this milestone, BeInCrypto is taking you on a quick jaunt through the currency’s storied history.

Bitcoin (BTC) first appeared in Satoshi Nakamoto’s Bitcoin Whitepaper, which was first published on October 31, 2008. The paper, called ‘Bitcoin: A Peer-to-Peer Electronic Cash System,’ laid out the basic tenets of the Bitcoin network. Namely, it was to be decentralized on a blockchain and would operate independently of any financial institution. No central bank and no central server. The anonymous programmer designed it to be moderated by code, computers, and the people who used it.

Satoshi’s project was also how the vast majority of the world came to know the concept of Proof-Of-Work. Which, until recently, was the favored consensus mechanism for blockchain-based cryptocurrencies. The Proof-of-Work algorithm wasn’t created by Bitcoin, as is widely believed; it merely propelled it into the mainstream.

The concept first appeared in a 1999 academic essay by Ari Juels and Markus Jakobsson called “Proofs of Work and Bread Pudding Protocols.” In the essay, the authors describe it as “a protocol in which a prover demonstrates to a verifier that she has expended a certain level of computational effort in a specified interval of time.”

Bitcoin introduced the concept of ‘mining’ as a competitive task and added an economic incentive in the form of a coin reward. Satoshi mined the first block of Bitcoin on January 3, 2009, less than four months after the whitepaper was published. Fourteen years ago this week.

Hobbyists, Eccentrics, And The Dark Web

It took some time for the project to lift off. It wasn’t until May 22, 2010, that the first reported real-world financial transaction took place. A Florida man traded 10,000 BTC for two Papa John’s pizzas worth about $25. In that transaction, the value of one Bitcoin was approximately four cents. To this day, the Bitcoin community continues to celebrate Pizza Day on May 22.

For many millions around the globe, the first time they ever actually traded bitcoin would have been on the Dark Web, a domain of the internet designed to be free from censorship and surveillance. In this respect, Bitcoin and the Dark Web were perfect companions. Whereas Bitcoin cannot offer true privacy (all transactions are immutable and public on its blockchain), its lack of a central authority added a double layer of security and anonymity when used in conjunction with the Dark Web browser, Tor.

These elements were not just to the advantage of activists and dissidents. Unsurprisingly, Bitcoin caught the attention of criminal elements too. Two years after Bitcoin’s first transaction, on February 11, 2011, Ross Ulbricht launched The Silk Road, the first efficient online marketplace for trading illicit substances and services. According to the US government, Bitcoin facilitated a total revenue of approximately $183 million, involving 146,946 buyers and 3,877 vendors.

Ethereum and the ICO Boom

The birth of Ethereum (ETH) also makes a key turning point in the lifecycle of Bitcoin. Whereas Naksmoto’s original currency had merged two things, a digital asset run and a public blockchain, its critics say that this paradigm was profoundly limiting.

Whereas Bitcoin was conceived as a store of value and a method of exchange, Ethereum employed smart contracts. A self-executing contract written using code that would initiate when certain preconditions were met. Vitalik Buterin, the author of Ethereum’s initial whitepaper, first brought the project to the world’s attention at a Bitcoin conference in Miami, Florida, in 2014.

The success of both Bitcoin and Ethereum was the necessary precondition for the ICO boom of 2017. The name is given to an explosion of tech startups that would issue new digital currencies to help fund their development. None of these projects, nor any of the so-called “Ethereum killers,” would come close to the success of Bitcoin itself. On February 1, 2017, before the ICO boom had really caught wind, Bitcoin’s dominance sat at a whopping 96%. (Bitcoin dominance refers to the coin’s current share of the global crypto market.)

By the beginning of 2018, Bitcoin’s dominance sat at a record low of 38%. As investors balked at the masses of scamcoins and shitcoins, people returned to bitcoin in their droves. The prevailing sentiment was that no other coin could compete with Bitcoin’s tried and tested value offer.

Bitcoin To The Moon?

There have been other projects that have taken Bitcoin’s structure and built on it. One of the most renowned that does not enable smart contracts is ZCASH (ZEC). A payment cryptocurrency that takes the fundamentals of Bitcoin but adds a layer of optional privacy. Despite innovations and thousands and thousands of “altcoins,” the health and price of Bitcoin is still used as a metric for the wider cryptocurrency market. Altcoins often track its predecessor in value, and alongside USD, is the primary method of measuring a cryptocurrency’s price.

BTC reached its ATH (or all-time high) in November 2021, at the tail-end of that year’s bull run. Despite a drop of 76% in a little over a year, people are still stubbornly bullish on Bitcoin’s ability to replace fiat currency and reach new ATHs. In the fourteen years since its first mint, it has spawned an active community of backers that would make the most popular sports teams blush. The co-founder and former CEO of Twitter, Jack Dorsey, has said he believes ‘the world ultimately will have a single currency, the internet will have a single currency. I personally believe that it will be Bitcoin.’

   

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14 years on, why Bitcoin will survive its growing pains

Next week, the entire digital asset industry will be celebrating Bitcoin’s 14th birthday, memorializing the moment Satoshi Nakamoto minted the very first Bitcoin block on Jan. 3, 2009. Since then, the industry has had cause to celebrate milestones both big and small: from the very first time the cryptocurrency was used to purchase a real-world item a year later – two large pizzas, to be precise – to the long-awaited launch of the United States’ first Bitcoin futures exchange-traded fund, issued by ProShares in 2021.

The industry’s journey has certainly been far from linear. Now in the throes of adolescence, Bitcoin is still experiencing growing pains as regulation catches up with innovation, while the entrance of new players – institutional or otherwise – continues to shape its future. As the industry grapples with the implosion of some of its biggest giants in recent months, what lies ahead for Bitcoin in 2023?

Impressions versus reality

If 2022 will be remembered for anything in the history of digital assets, it will be that it was the year of the Great Crypto Collapse — market swings and price dips aside, incidents of fraud and mismanagement have embattled the industry. First, the collapse of Terra-Luna this spring and the resulting losses suffered by crypto hedge fund Three Arrows Capital, which triggered a wave of bankruptcy filings. Now, the demise of one of crypto’s largest exchanges, FTX, filing for bankruptcy after the misuse of customer funds.

The events of this year have shaken institutional investors who had been slowly warming to digital assets. Crypto funds and projects had been lauded as “buttoned-up” success stories promised high returns as well as minimal correlation to other assets – a highly lucrative opportunity amid the looming threat of recession, the impact of high inflation, and ever-increasing return mandates. Trust was so high that the CFA Institute’s 2022 Investor Trust Survey found that 94% of state or government pension plan sponsors globally were investing in cryptocurrencies. Meanwhile, almost a third of institutional investors globally had invested in digital assets by the first half of 2022, according to Fidelity Digital Assets.

The repercussions of this year have been painful. The Ontario Teachers’ Pension Plan (OTPP), one of the world’s largest pension funds with approximately CA$242.5 billion (US$178.7 million) in assets under management, had made prior investments in both FTX International and FTX US, valued at US$75 million and US$20 million respectively. Following FTX’s collapse, OTPP announced that it would be writing down its investment in FTX to zero. Other firms such as Singapore government-owned Temasek Investments and venture capital firm Sequoia Capital have also seen their investments zeroed.

Caution will abound in the year to come with institutional money flowing into the space likely to dwindle, especially as investors look to mitigate the effects of broader macroeconomic headwinds. Crypto may have been a vehicle to diversify portfolios, but it will lose its luster as bad actors squander all the good work done to date, leading to plunging prices. However, there is a silver lining – greater demands for due diligence and an emphasis on corporate governance, perhaps even prompting greater oversight from limited partners who will want to see venture capital funds sitting on the boards of their crypto-related portfolio investments. Better oversight could be what helps build the trust and legitimacy the industry needs to go mainstream, remembering this year’s events were sparked by a lack of transparency and deficient risk management, while the underlying technology kept working flawlessly.

Going for green

Investors’ attention has not been solely focused on crypto this past year. Environment, social and governance investments have intensified as the finance industry looks to wean itself off high-carbon, high-risk assets and look for future growth areas. Impressive results from ESG assets have sweetened the deal, with 60% of institutional investors surveyed by PwC, stating that ESG investing has already resulted in higher performance yields relative to non-ESG investments.

For those with both green and crypto holdings, there is the question of squaring Bitcoin’s growth potential with its carbon footprint. For years, critics have spoken on the sustainability and energy-efficiency issues surrounding Bitcoin mining while supporters highlight the use of renewables or of surplus energy to power operations, thereby reducing wastage in energy production.

Either way, regulators are moving fast. This November, a two-year moratorium on new permits for fossil fuel-powered, proof-of-work (PoW) mining operations was signed into law in New York as the state looks to re-evaluate its economic development opportunities against climate goals. And in the same month, Bitcoin mining revenue hit its lowest in two years, all while the network’s mining difficulty hit a new all-time high of 37 trillion, demanding more computational energy and therefore, more energy expenditure which comes at a cost.

Meanwhile, the European Union ushered in the Markets in Crypto Assets (MiCA) framework which has called for a more sustainable crypto industry as a whole. Though explicit mentions of PoW were eventually stripped from the bill, sustainability is certainly an area that E.U. policymakers will be watching for the foreseeable future.

Ever since the Ethereum network successfully transitioned from PoW to proof of stake (PoS) via “the Merge” this past September, analysts have been quick to argue that ETH may become the new face of sustainable crypto assets. The Ethereum Foundation estimates that the move to PoS will reduce the network’s energy consumption by 99.95% and during this year’s United Nations Climate Change Conference, a cohort of Web3 companies unveiled the Ethereum Climate Platform, which looks to “redress and counteract” the network’s carbon footprint dating back to the network’s launch in 2015 by investing in ongoing science-based climate projects. Ultimately, until we see renewables become the standard — rather than the alternative — ETH investments may very well become the norm for ESG-minded investors.

Starting from zero

However, with uncertainty comes opportunity. While depressed prices have allowed determined HODLers to purchase more BTC cheaply, institutional investors have seen it as a chance to short the market. CoinShares found that in the last few weeks of November, 75% of all institutional crypto investments went to short crypto investment products. Now, should prices stay as they are, compounded with the current economic environment, investors may choose to hold their positions in order to stave off losses. After the recent events, it seems we may have reached a point of seller exhaustion. Seeking an opportunity to invest in an undervalued asset, institutions may choose to flock to crypto again.

For better or for worse, the challenges facing the crypto ecosystem for the past few months will ultimately be a test of resilience for both investors and projects alike. Bitcoin has survived previous cycles and will no doubt endure this one too, thanks to its function as a store of value and an enabler of new projects and innovations.

Promising developments are especially taking place in South America — in November, Brazil’s congress approved a new regulatory framework that will give legal status to payments made in Bitcoin and other cryptocurrencies for goods and services. While the framework has yet to be signed into law by the president and will not go as far as granting cryptocurrencies the status of legal tender, the move is still a significant step forward. Some financial institutions in the country have already expressed interest in the industry, such as the Brazilian branch of Spanish bank Santander, which announced earlier this summer that it intends to offer crypto trading services to its clients. The framework, however, would also allow banks to offer and facilitate crypto payment services which will be key in encouraging their widespread use.

Like any teenager, Bitcoin will ultimately face its very own crisis of confidence. Greater regulation may in the short term threaten the platforms and services that enabled an entirely new generation of investors to jump head-first into the space. However, the same regulatory framework ought to provide more confidence for institutional and sovereign players to enter the scene in the long term, with the assurance that Bitcoin and crypto are here to stay. Now, more than ever, the strength of its earliest supporters will make all the difference — the dedicated builders and innovators who continue to believe in its promise in enabling a better financial ecosystem.

   

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Bitcoin Protocol Development Steadily Progressing Despite Only 40-60 Monthly Active Developers: NYDIG

In a world where giants of the conventional financial system like Visa, Mastercard and PayPal employ tens of thousands of employees, Bitcoin continues to be run by a tight ship of just a few dozen active developers.

New York Digital Investment Group (NYDIG), a Bitcoin-focused investment firm, published a report in September chronicling Bitcoin’s 14-year evolution from a software development perspective. The report, titled “Developers of Bitcoin,” found that there are only 40 to 60 active developers. The document sheds light on how Bitcoin has steadily grown from an obscure technological breakthrough, to worldwide domination, and examines the software developers who made it all happen.

What’s most mind boggling, perhaps, is how the world’s most dominant cryptocurrency, currently worth about $320 billion, has been chugging along with no major hiccups for almost 14 years, under the care of a passionate – but small – group scattered across the globe.

“The purpose of the report was to help people understand Bitcoin’s development cycle: How it evolved from an idea circulated on a mailing group, to a pervasive technology today. And then, who are the people who continue to update the [Bitcoin] protocol,” explained Greg Cipolaro in an interview with CoinDesk. Cipolaro is NYDIG’s global head of research and co-author of the report.

Read more: So You Want to Be a Bitcoin Developer?

The Satoshi Era

Satoshi Nakamoto, Bitcoin’s pseudonymous founder, published his whitepaper on Oct. 31, 2008, and subsequently launched the Bitcoin network on Jan. 3, 2009. He was soon joined by five other contributors, notably, Hal Finney, a developer and cypherpunk who became the first bitcoin transaction recipient (courtesy of Satoshi), and Laszlo Hanyec, a programmer who famously paid 10,000 BTC (almost $170 million today) for two pizzas.

Read more: What Is Bitcoin Pizza Day?

With Satoshi at the helm, a community formed, but by 2010, that community had outgrown its founder. Realizing this, Satoshi gave Gavin Andresen the keys to the kingdom. Andresen, who was then an active contributor to the project, became Bitcoin’s “lead developer” and moved the project to open source collaboration platform, GitHub, paving the way for true decentralization.

“In a final email to developer Mike Hearn, Satoshi declared, ‘I’ve moved on to other things. It’s in good hands with Gavin and everyone,’” the report states.

Bitcoin development today

Nowadays, Bitcoin developers can be found worldwide. Roughly 84% of its GitHub commits – or suggested software changes – come from 20 different countries.

“One of the interesting things I thought we uncovered in the report is the geographic location of the developers,” said Cipolaro. “It’s helpful for investors who may be concerned about who’s contributing and updating this piece of software. We know who they are and most of them seem to be in North America, Western Europe, those types of geographies.”

Another shift is the recent shelving of the lead developer/maintainer role in favor of a more egalitarian model that elects a group of maintainers instead. A “maintainer” is essentially a GitHub administrator with permission to approve software changes suggested by other developers.

Earlier this year, Gloria Zhao became the first female Bitcoin maintainer in the community’s history.

Bitcoin by the numbers

According to the report, “code contributions have reached 200-400 commits monthly,” a steady, measured progression. And although Bitcoin’s core protocol averages 40 to 60 monthly active developers, 1,140 developers have contributed to the project since inception, with 5 to 20 new developers testing the waters every month (as others either scale back or leave).

Monthly Active Developers in Core Protocol and Bitcoin (NYDIG)

The broader ecosystem (developers working on Bitcoin related applications) follows a similar pattern, but, of course, with higher numbers. NYDIG estimates the number of monthly active developers in that wider community to be anywhere from 600 to 1,000, with the total number of contributors being over 13,000 since inception.

When compared to competing networks, Bitcoin always seems to come out smaller, but exponentially more efficient. For example, previous estimates from venture firm, Electric Capital’s 2021 developer report, show Ethereum has over 4,000 monthly active developers in its broader ecosystem, compared to Bitcoin’s 600 to 1,000, yet Ethereum’s current market capitalization is less than half of Bitcoin’s.

Similarly, traditional payment firms like Visa and Mastercard, with market capitalizations comparable to Bitcoin’s, are run by tens of thousands of full-time employees (Bitcoin developers are all volunteers, many of whom are part-time). These numbers seem to not only illustrate the “ultra lean” nature of the Bitcoin machine, but also, the purpose-driven orientation of its contributors.

“Do you want the missionaries or the mercenaries? Do you want hired guns to come build things and then they leave when the money’s gone, or do you want the missionaries who are here for a purpose?” said Cipolaro. “I think the people who are here for philosophical or ideological reasons tend to stay around longer and make more contributions than those who are just here for the money.”

   

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How to buy food with Bitcoin?

Bitcoin (BTC) is a dynamic monetary asset with the potential of being both — a commodity and a currency. For instance, the Securities and Exchange Commission (SEC) classified BTC as a commodity, whereas El Salvador made Bitcoin a legal tender in 2021.

So, does this make BTC a store of value or a medium of exchange? It can do both — On one hand, BTC can be added to treasuries as an inflationary hedge. On the other hand, it could also serve the retail purpose of paying for routine expenses.

Almost over a decade ago, the first person to utilize Bitcoin for a business transaction was Laszlo Hanyecz, who spent 10,000 BTC on two pizzas, or as the crypto community addresses it, the Bitcoin pizza. However, that is not the amount of BTC anyone needs to actually buy food in the real world now. Why? Because customers have realized to only pay the amount for which the product is worth, not more or less.

This article will discuss different ways by which one can buy food using Bitcoin. From crypto debit cards and gift cards to crypto food delivery portals, this article will lay down all possible options to efficiently use cryptocurrency for grabbing a meal.

Various ways to buy food using cryptocurrency

There are a few ways to buy food with Bitcoin, depending on the user’s needs and interests. Following this, these are the three most common ways to use cryptocurrency for daily expenses like food:

Crypto cards

Crypto cards are like regular debit or credit cards, but crypto cards let the customer use their crypto to make payments. They essentially deduct crypto from the user’s wallet and transfer fiat at the merchant’s end.

It helps users pay their routine bills through crypto without the complexities of finding outlets that accept crypto payments. Moreover, nowadays, numerous crypto card companies offer mobile apps that make it easy for the customer to spend Bitcoin anywhere.

Crypto gift cards

Customers may purchase gift cards for several food and delivery services using cryptocurrencies. They can then redeem said gift cards to pay for their meals in digital currencies. Crypto gift cards facilitate the sale and purchase of items from participating merchants to customers using cryptocurrency. There are a number of companies that offer gift cards, so it’s easy to find one that fits user needs.

Crypto food delivery portals

Crypto food delivery sites are connected to many food and beverage outlets across various regions. It is like a website or application for ordering food from nearby restaurants and paying the platform via crypto instead of paying the food vendor.

How to buy food using a crypto card?

Crypto cards allow Bitcoin transactions on various items in the physical world. However, in order to spend BTC via a crypto card for daily needs like food, consumers need to follow certain steps:

  • The first step is to set up a digital wallet, along with a merchant account. Given there are several crypto cards available in the market. Hence, it is ideal to research the options and choose one that meets the respective user’s needs and budget.
  • Sign up by downloading the app and completing the Know Your Customer (KYC) requirements. Registering for the card and creating an account with the provider will allow the user to efficiently access their funds and make purchases online or in-store.
  • Users may set up a spending limit along with scheduling regular deposits into their accounts.

Almost all crypto cards allow customers to instantly convert crypto to fiat. Nevertheless, how to choose a crypto card that suits an individual’s goals? While some customers may prefer cash-back rewards, others may gravitate toward yielding services.

Many cards are suitable for regular shoppers since they work as purchase reward cards that allow users to earn money back on purchases. Following this, some cards also allow users to earn interest on crypto held in the account.

Furthermore, while accessing the utility of a crypto card, make sure to check for multi-coin support. The crypto card should ideally support several cryptocurrencies, such as BTC, Ether (ETH) and Litecoin (LTC), among others.

Companies offering crypto credit cards include BlockFi and Gemini. However, more companies offer crypto debit cards, such as Coinbase, Crypto.com, BlockCard, Binance Visa Card and BitPay.

How to buy food using a crypto gift card?

Crypto gift cards are loaded with digital funds that can be used at any participating restaurant or retail store. They’re straightforward to use and provide a way for customers to spend their cryptocurrencies in a convenient manner. Here are some steps on how to get started:

Brands like Amazon and Walmart don’t accept Bitcoin directly, but they do accept crypto gift card services. Following this, to directly pay for food in BTC using a crypto gift card, users may use Bitrefill. It is a website that offers gift cards, prepaid mobile refills and Bitcoin Lightning Network services for over 1600 products in 170 countries.

How to use crypto food delivery portals?

Crypto food delivery portals are not drastically different from using crypto gift cards. Both connect the user to merchants that accommodate the use of crypto services for payments. Following this, the steps are also fairly similar — choosing a platform, signing up and loading the wallet with funds.

Furthermore, customers have different options for using a crypto-delivery portal to buy food. From simply buying food with cryptocurrency to purchasing groceries on credit and then paying off those purchases with cryptocurrency, both make crypto delivery portals convenient for making crypto payments.

Platforms that allow users to order food directly from restaurants and then pay for it in cryptocurrency, like Hungry? in the United Kingdom, Sprigz in the United States, BiteMyCoin in Australia and Eats24/7 in Canada, can be an alternative way of ordering food using cryptocurrencies.

Should you buy food with crypto?

There is no black-and-white answer to whether or not users should choose crypto payments to buy food. However, there are both benefits and drawbacks to using cryptocurrency for food purchases.

On the plus side, cryptocurrency transactions are generally quick and straightforward. Following this, given that cryptocurrency transactions are recorded on the blockchain, it makes the process of tracing the history of transactions efficient. Furthermore, crypto payments directly connect the customer to the merchant, eliminating the need for intermediaries such as banks.

On the flip side, crypto payments pose a threat of monetary loss via hacks. Additionally, the digital asset class is also highly volatile, which may cause difficulty in pursuing daily transactions. So users must do their research before using cryptocurrency as a medium of exchange for daily expenses.

   

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Subway accepts Bitcoin, so users can get a sandwich on the Lightning Network

No, it’s not Groundhog Day. Subway is accepting Bitcoin (BTC), again — but this time it’s using the fast, nearly free Bitcoin Lightning Network.

Kicking off the 7-day #usingbitcoin week with Lunch at Subway, Chausseestrasse in Berlin!

50% off when paying with #bitcoin
#spendyourbitcoin pic.twitter.com/f81kdMOnEQ

— felix (@felixbillert) October 19, 2022

The world’s largest franchise by number of restaurants is trialing Bitcoin payments at three Subways in Germany’s capital, Berlin. Subway first experimented with Bitcoin almost 13 years ago in Moscow, Russia.

Over the past few months, Daniel Hinze, the Berlin Subway franchise owner, recorded over 120 Bitcoin transactions. In an interview with Cointelegraph, Hinze explained his desire “to help Bitcoin become money.”

“Five years ago, I started to deal with cryptocurrencies; and in the last two years, I have dealt very intensively with the topic of Bitcoin. With that in mind, I’ve decided that [Bitcoin] could be the better money system.”

Bitcoin is not a popular means of exchange in Europe, despite the efforts of merchants, retailers and even Lightning-enabled conferences. Hinze has encouraged Bitcoin payments by offering a 10% discount on all footlongs, meatball marinaras and sucookies paid for with BTC.

Lunch with #usingbitcoin
at Subway in Berlin.
Also got 50% off. 😀 pic.twitter.com/yZkZ6osO9D

— Rumpel_BTC (@BtcRumpel) October 19, 2022

To kick off the campaign, Hinze offered a 50% discount on all Bitcoin payments for one week:

“Around the week, there was, of course, extremely high demand. Our three restaurants were frequently visited by people who liked to pay with Bitcoin.”

German-speaking social media was buoyed by Subway buys as the hashtag #usingBitcoin took over. Hinze partnered with Lipa, a Swiss-based Bitcoin company, to enable an easy-to-use point-of-sale solution.

Bastien Feder, CEO of Lipa, told Cointelegraph that its mission is to make Bitcoin “basically irresistible to use because Bitcoin is currency.” Lipa kitted out the Subways with merchant devices that allow customers to quickly scan a Lightning-enabled QR code that allows for fast, frictionless, low-cost payments.

Lipa charges merchants 1% for the service, as opposed to Visa or Mastercard payment rails, which charge double or more. Feder explained:

“It’s 2.5% to 4% depending on the contract from the merchant. If it’s a business card, there’s 0.5% on top of that. […] And if it’s a foreign business credit card, you pay up to 7%, and you don’t know until the end of the month.”

The experience of paying over the LN differs greatly from when Subway franchises first accepted Bitcoin payments in 2014. Before the arrival of the LN, customers would have to wait for around for several minutes.

Miners would mint the next block on the blockchain, with the transaction confirmed by Bitcoin nodes around the world. The process was inconvenient for retail payments due to the wait time as well as the sometimes high fees. With the LN, customers enjoy faster settlement times than Visa or Mastercard and lower fees thanks to a peer-to-peer network of payments.

RACE OF THE RAILS ‍♂️

Bitcoin #Lightning payments vs #fiat contactless payments at the #Gibraltar Bakery.

£2.20 loaded up on both PoS.

WHO WINS?? ⚡️ ⚡️

⁦@CoinCorner⁩ ⁦@CoinCornerMolly⁩ pic.twitter.com/b3ezy7FIeq

— Joe Nakamoto (@JoeNakamoto) July 25, 2022

Nonetheless, due to the fact that Bitcoin has for most of its history been a speculative vehicle — sparing a few use cases for purchasing — encouraging Bitcoiners to spend BTC can be a challenge.

Nonetheless, retail examples are popping up, such as in Berlin or San Salvador. Nicolas Burtey, CEO of Galoy Money, told Cointelegraph that the adoption of Bitcoin in El Salvador was the tipping point for the Lightning Network. He joked that the Bitcoin Law “should have actually been called the Lightning Law!”

Related: McDonald’s, pizza and coffee paid in Bitcoin: The Plan B for crypto payments

Lipa and Hinze expect a steady increase in demand for Bitcoin payments. Feder told Cointelegraph that it’s due in large part because of the ”exponentially rising Bitcoin community in Germany, in Switzerland, basically all over the world.”

Indeed, the LN is enabling communities keen to trade, from Senegal to Guatemala and Switzerland. Hinze told Cointelegraph that for the moment, the Subway restaurant only accepts the world’s most recognizable currency, as he and his business partners “firmly believe in Bitcoin.”

   

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