Significant Blockchain Event
A significant blockchain event is garnering attention as two legendary physical bitcoins, with an estimated combined worth exceeding $120 million, recently changed hands after remaining untouched for over 13 years. This unique movement was highlighted by former Mt. Gox CEO Mark Karpelès, who reminisced about his practice of distributing smaller denominations of these remarkable coins to employees as bonuses during the company’s height.
Activation of Casascius Coins
On Sunday, cryptocurrency enthusiasts, often referred to as on-chain detectives, detected that two 1,000 BTC Casascius coins were activated on the blockchain, stirring insights into the actual value of these physical tokens. Originating from the early days of Bitcoin, these physical bitcoins are gold-plated coins or bars that conceal a private key beneath a tamper-proof holographic sticker, a method created by Mike Caldwell between 2011 and 2013. To access the stored value, the holder must remove the hologram, exposing the key beneath.
Purpose and Design of Casascius Coins
The goal behind creating Casascius coins was to facilitate physical Bitcoin transactions. With a sturdy brass body and options for gold and silver plating, each coin houses a card containing a private key, safeguarded by a tamper-evident hologram.
Caldwell ceased production in November 2013, prompted by a warning from the Financial Crimes Enforcement Network (FinCEN) regarding the regulatory implications of selling pre-funded items as money equivalents. Karpelès clarified that although he did not possess the large 1,000 BTC coins, he did have a variety of smaller denominations, including 25 BTC and 1 BTC coins, which he generously awarded to his employees as bonuses during his tenure at Mt. Gox.
Value Appreciation of Casascius Coins
In the early minting days of Casascius coins, a 25 BTC piece could have been valued anywhere from $100 to $25,000; however, today, its worth hovers around $1.5 million, disregarding the significant premiums collectors typically pay for pristine, unpeeled coins. Despite this astonishing appreciation, it remains unclear how many of the former staff from Mt. Gox chose to keep their physical tokens intact.
