Two long-inactive Casascius coins, each holding 1,000 Bitcoin, have just been reactivated, unlocking approximately $180 million stashed away for over a decade.
More Than $180 Million In Physical Bitcoin
According to on-chain data, one of the Casascius coins was minted in December 2011 when Bitcoin was worth just around $3.88, giving the coin a theoretical return of around 2.3 million percent. The other was minted in October 2012, when BTC was changing hands at just under $12.
Casascius coins are physical metal coins and bars containing embedded private keys, created by Utah-based entrepreneur Mike Caldwell starting in 2011. The coins, issued in denominations ranging from 1 to 1,000 BTC, are considered one of the most sought-after physical collectibles related to the premier cryptocurrency.
Each Casacius coin contains an embedded piece of paper with a digital Bitcoin value and is covered in a tamper-resistant hologram, which protects the key underneath. The private key is only 26 to 36 characters long instead of the normal 51 characters. The front side of the coin contains the first eight characters of the Bitcoin address that corresponds to its key.
Caldwell ceased producing pre-funded coins in late 2013 after receiving a letter from the U.S. Financial Crimes Enforcement Network (FinCEN) that classified him as an unregistered money transmitter.
The Casascius business effectively came to an end due to the regulatory heat, leaving approximately 90,000 coins in circulation. Only 16 of the 1,000 BTC bars and 6 of the 1,000 BTC coins were ever minted.
The first crypto user to redeem the private key by removing the holographic sticker will receive the coin’s full value. The coin will thereafter have no Bitcoin value.
It’s not clear whether the recent transfers were sales, internal reorganizations, or only precautionary movements to preserve access to the valuable commodities. It should be noted that redeeming a Casascius coin for its Bitcoin equivalent doesn’t mean a massive amount of BTC will be released into the open market.
Source: https://zycrypto.com/two-rare-casascius-coins-holding-2000-bitcoin-moved-after-13-year-dormancy/
