How bitcoin value in dollars was first established

Bitcoin Questions and AnswersCategory: General questionsHow bitcoin value in dollars was first established

Paul Abrahams asked 9 months ago

I know about the Genesis block, but I still don’t understand how bitcoin first became tradeable for dollars. In other words, what first motivated someone to pay dollars for bitcoin?

1 Answers
Steven Hay answered 9 months ago

Hey Paul,
 
The first recorded Bitcoin value exchange occured in 2010 between two users. A user in the UK wanted BTC (perhaps because he found the system interesting or believed it may assume monetary value in future) so he used regular monetary transfer systems to purchase 2 pizzas for a user in the USA, in exchange for about 10,000 BTC. As the pizzas were worth about $25, that set an initial Bitcoin price of around 0.0025c (US). More trades occurred and eventually exchanges developed to facilitate them.

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