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What Are Casascius Bitcoins and Why Are They So Expensive?
Casascius Bitcoins are the only truly valuable physical bitcoins in existence, launched by Utah resident Mike Caldwell in 2011. At the time, Bitcoin was trading for around $10, so it wasn’t as much of an undertaking. Caldwell produced ₿ 10, ₿ 25, ₿ 100, and even ₿ 1,000 versions, including gold bar lookalikes. These early physical representations of Bitcoin were widely available until the US government intervened in November 2013.
What sets Casascius Bitcoins apart from other physical interpretations is that they contain redeemable BTC, with the private key residing underneath a hologram layer imprinted on the coin. This unique feature requires the virtual contents to be accessed by removing or “peeling” the hologram. The Financial Crimes Enforcement Network (FinCEN) deemed Caldwell’s operation as a money transmitting business, necessitating registration at the federal level and potential state licenses. Wisely, Caldwell chose to cease producing these BTC-filled versions, thus ensuring that all pre-November 2013 coins and bars acquired an extra layer of rarity. This resultant increase in demand and value makes them highly sought after.
According to a tracking website called Casascius Bitcoin Analyzer, a staggering 65% of Caldwell’s original items remain unopened. Of the total number of coins produced (27,834), only 9,689 have had their contents removed, which translates to around one-third having been opened. Notably, only two of Caldwell’s flagship ₿ 1,000 bars remain untouched, now worth an astonishing $92 million each.
It is not surprising that these rare, unique coins occasionally appear on eBay, with the pre-2013 editions fetching a premium price. While some coins were opened before the deadline, others have managed to hold out for longer: the most recent peeling occurred in October this year.
Source: fullycrypto.com
