Crypto Assets are shining stronger and louder as the star of the digital age we are in every day. Such crypto-themed experiences are as exciting as the rapid development of crypto assets, the beginning of many unpredictable adventures and a source of inspiration for the future.
We would like to take a closer look at this story, as this blog explored the potential of cryptoassets on the financial future of humanity with two large pizzas purchased in 2010 for 10,000 Bitcoins at the time, and we would like to take a closer look at this innovation that is overtaking traditional payment methods day by day. This is because the impact and value of crypto-assets have gone beyond being just a financial instrument, and have provided an opportunity to build a new financial system in the world economy. Now, we would like to go into the details of this story of how crypto assets pioneered and pioneered the beginning of innovation that changed the world, and how the gates of the time that opened to the future were overcome thanks to crypto assets.
Every year The story that led to the celebration of “Bitcoin Pizza Day” began in 2010 when a computer programmer named Laszlo Hanyecz bought pizza with Bitcoin for the first time. At that time, Bitcoin did not have the value and influence it has today, so it was seen as very worthless and not widely accepted among people. In order to test this new digital currency, Laszlo decides to order a pizza and places an ad on the widely used platform “Bitcoin Talk”. If we include his ad;
“I will pay 10,000 Bitcoins for a couple of pizzas. Maybe two large pizzas. That way I’m guaranteed the next day. I love pizza, you can make it yourself or order it to your home. But what I’m aiming for is to order my pizzas with cryptocurrencies… I like things like onions, peppers, sausages, mushrooms, tomatoes, pepperoni… Also pizzas made with normal cheese might be cheaper to prepare or otherwise get. If you are interested please let me know and we will make a deal.”
As can be seen, Laszlo was actually looking for a pizza order that he could pay for with Bitcoin, rather than a regular pizza order. Interestingly, within a few hours, the restaurant Papa John’s accepted Laszlo’s request and the pizzas were purchased by Laszlo with the realization of a 10,000 Bitcoin payment in exchange for two large pizzas. Back then, pizzas, or 10,000 Bitcoins, were only worth about $41; now 10,000 Bitcoins are worth $642,384,000.00. If this had happened under today’s conditions; it would be quite possible to say that it was the most expensive pizza order ever.
Bitcoin Pizza Day” actually marks the day on May 22, 2010, when a Bitcoin enthusiast named Laszlo Hanyecz bought a pizza using Bitcoin and has been celebrated every year since the first Bitcoin transaction took place. Laszlo Hanyecz, who bought a pizza with Bitcoin, was also one of the first miners of Bitcoin, and since this order demonstrated the potential of cryptocurrencies and the importance of crypto assets as a payment method, it has been celebrated as “Bitcoin Pizza Day” on May 22 every year. Ordering a pizza with Bitcoin can be seen as just an ordinary example; however, such daily uses are important in terms of showing how cryptocurrencies can be used in daily life and the change in the financial system, as well as in terms of changing economic dynamics over time.
As can be seen, Bitcoin’s popularity is increasing not only as an investment instrument but also as a preferred payment method. Cryptocurrencies have become an increasingly accepted payment method in recent years as one of the financial innovations of the digital age due to their advantages over traditional financial instruments such as low transaction costs, fast transaction times, privacy and security, global reach, etc. Popular cryptocurrencies such as Bitcoin, Ethereum, Ripple…etc. are as globally preferred for business transactions as traditional currencies.
In the context of Turkey, cryptocurrencies cannot be used as a payment method at this stage. This became evident in 2020 with a regulation issued by the Central Bank of the Republic of Turkey (CBRT). This regulation prohibits the use of crypto assets as a means of payment and the issuance of electronic money. The reasons for the ban are that crypto assets are considered risky to use as a means of payment due to many listed factors such as price fluctuations, security concerns, tax and cost factors, legal uncertainties…. Moreover, the prohibition of the issuance of electronic money stems from the central bank’s aim to safeguard monetary policy and financial stability.
We believe that the use of crypto-asset units will expand and increase in our country in the future when they are harmonized with security measures and the regulatory framework is strengthened or revised. Considering the potential advantages and risks of cryptocurrencies, it is important to create a safe and sustainable usage environment. This is because the interest and acceptance of cryptocurrencies in Turkey is increasing due to the young population and interest in technology, and cryptocurrencies may become an attractive option for many individuals in terms of financial freedom and digitalization. We are sure that the process that started with Laszlo Hanyecz’s pizza order with Bitcoin will spread to the financial conjuncture of our country. We already think that crypto assets will be used more frequently as a payment method than traditional methods in the future. We would like to state that the increased acceptance of crypto asset units as a payment method will also make a significant contribution to the transformation and digitalization of the financial system.
Lawyer – Betül AKÇA
