2,000 Bitcoin Unleashed: Rare Casascius Coins Reactivated After 13 Years

Two rare Casascius coins, each valued at 1,000 Bitcoin, have been brought back to life as of Friday, releasing over $179 million that had been locked away for more than 13 years.

Key Takeaways

Two dormant Casascius coins containing 1,000 Bitcoin each have been activated.
The total value of the activated coins exceeds $179 million.
One coin was minted in October 2012 at a price of $11.69, while the other was created in December 2011 at a price of $3.88.
Casascius coins are considered highly collectible physical representations of Bitcoin.
The redemption of these coins does not necessarily indicate an influx of Bitcoin into the market.

2,000 Bitcoin Unleashed: Rare Casascius Coins Reactivated After 13 Years

On-chain data shows that one of these Casascius coins was minted in October 2012, when Bitcoin's price was just $11.69. Meanwhile, the other coin was minted earlier in December 2011, when Bitcoin's value was only $3.88, resulting in an astounding theoretical return of about 2.3 million percent, not factoring in the minting costs.

The Background on Casascius Coins

Casascius coins are tangible metal coins and bars created by Mike Caldwell, an entrepreneur from Utah, between 2011 and 2013. Caldwell converted Bitcoin into these physical coins, which have become highly sought-after collectibles in the cryptocurrency community.

Casascius coins _Source:_Sani

Each Casascius coin features an embedded piece of paper that specifies the digital Bitcoin value, protected by a tamper-proof hologram. The denominations available included 1, 5, 10, 25, 100, 500, and 1,000 BTC. However, Caldwell halted the production of these coins after receiving correspondence from FinCEN due to concerns regarding operating a money transmitter business without the proper license.

Understanding How Casascius Coins Operate

Historical records suggest that only 16 of the 1,000 BTC bars and 6 of the 1,000 BTC coins were ever produced. The first individual to redeem the private key beneath the holographic sticker of a coin will be able to claim the full value of the Bitcoin contained within it. However, once redeemed, the coin will no longer hold any Bitcoin value.

Related:__Bitcoin OG’s selling to ‘weak’ hands will exacerbate selloffs: Peter Schiff

Despite the activation of a Casascius coin for Bitcoin, it doesn’t automatically mean that a large volume of Bitcoin will enter the market. For instance, in July, the owner of a 100 Bitcoin Casascius coin known as “John Galt” transferred his holdings from a physical coin to a hardware wallet. He informed Cointelegraph that this move was made for accessibility, and he had no immediate intention of selling.

“Having 100 BTC is transformative for anyone. However, I've held it for so long that this decision was more about security than an urge to get rich,” he stated.

Magazine:__13 Christmas Gifts That Bitcoin and Crypto Enthusiasts Will Adore