Two uncommon Casascius cash, every backed by 1,000 Bitcoin, have been activated after greater than 13 years of dormancy, shifting over $179 million in worth on Friday.
Historic context of Casascius cash
One of many activated cash was minted in October 2012, when Bitcoin traded at $11.69, whereas the opposite dates again to December 2011, when the worth was simply $3.88.
This represents a theoretical return of round 2.3 million % for the sooner coin, excluding minting prices.
Casascius cash, created by Utah entrepreneur Mike Caldwell between 2011 and 2013, are thought of extremely sought-after bodily bitcoin collectibles.
Every coin contains a tamper-resistant hologram and comprises a non-public key for a set quantity of bitcoin, with denominations starting from 1 to 1,000 BTC.
Rarity and mechanics
Solely 16 of the 1,000 BTC bars and 6 of the 1,000 BTC cash had been ever produced.
As soon as the holographic sticker is peeled and the personal key redeemed, the bodily coin loses its bitcoin worth.
Market affect and proprietor selections
Redeeming a Casascius coin doesn’t routinely imply the bitcoin might be bought or instantly hit the market.
In a earlier case, a 100 BTC Casascius coin proprietor, often known as “John Galt,” defined his motivation for redemption was security, not liquidation. He acknowledged:
“Having 100 BTC is life-changing for anybody. However the factor is, I’ve had it for therefore lengthy that this was extra about staying protected than immediately getting wealthy.”
Collectible legacy and regulation
Caldwell ceased minting Casascius cash in 2013 after receiving a letter from FinCEN regarding cash transmitter rules.