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What Are Casascius Bitcoins and Why Are They So Expensive?
In the world of cryptocurrencies, there exist a few rare and unique items that have gained immense attention and value over time. One such item is Casascius Bitcoins, which has taken the crypto space by storm due to their extraordinary rarity and what makes them so expensive.
Casascius Bitcoins were first introduced in September 2011 by Utah resident Mike Caldwell, a Bitcoin enthusiast. His aim was to create a physical representation of Bitcoin that would serve as a conversation piece and help people understand the cryptocurrency better. Caldwell’s creation consisted of coins or bars with redeemable BTC, but with a twist – these coins were only accessible once the hologram layer on top was removed.
The uniqueness of Casascius Bitcoins lies in their ability to hold portions of actual Bitcoin (BTC). They were made available for purchase online and became an instant hit. Caldwell produced various denominations such as ₿ 10, ₿ 25, ₿ 100, and even ₿ 1,000, including gold bar lookalikes.
What drove up the value of Casascius Bitcoins is the ban imposed by the Financial Crimes Enforcement Network (FinCEN) in November 2013. Caldwell was told that selling coins with BTC inside them qualified him as a money transmitting business, necessitating federal registration and potential state licenses. Wisely, he opted to cease production, resulting in an instant scarcity of these unique items.
Fast forward to the present day, only 34% of these coins have been opened or “peeled”, meaning nearly two-thirds are still intact with their BTC contents. This staggering figure includes just two unopened ₿ 1,000 bars that are now worth a whopping $92 million each.
The rarity and value of Casascius Bitcoins have led to them appearing on online marketplaces like eBay from time to time. It’s no surprise that the pre-2013 editions are fetching an extraordinary premium. Notably, most coins were opened before 2013, but some have managed to hold out for longer – with the most recent instance occurring in October this year.
As it stands, over 65% of Caldwell’s original creations remain unopened and untouched. It is safe to say that the legacy of his pioneering work will continue to captivate the crypto space for a long time to come.
In conclusion, the immense value attached to Casascius Bitcoins stems from their rarity and the ban imposed by FinCEN in 2013. This scarcity has led to an extraordinary increase in demand, driving up their worth exponentially.
Source: fullycrypto.com
