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What is physical bitcoin and what is its value?

Even in this digital age where most data is secured in remote servers and virtual accounts, many people still see value in storing valuable assets in a safe or vault. Many people have also avoided the idea of ​​digital currency because they cannot buy it physically as they would with traditional currencies. Physical bitcoins were created with these pointers in mind.

Outwardly, physical bitcoins are similar to their fiat counterparts. They are usually made of metals such as copper, silver or even gold. They also have a logo printed on one side and its value on the other. However, the similarities between the two end here.

While central fiat currencies have a specific value, the physical bitcoin’s value comes from a private key printed on the back. This key holds the actual value of the coin in the digital wallet – it can be 1 BTC or 100 BTC, depending on the coin maker.

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You can think of physical bitcoins as a bank card or gift certificate. No value for paper or card. Instead, the magnetic stripe on the front of the card or certificate on the coupon is what gives you access to the real currency. Likewise, when it comes to physical bitcoin, it is not the currency that matters so much, but the private key mentioned on the back that does.

How are physical bitcoins created?

Most people who create physical bitcoins use a 3D printer. The design itself is different because it was created by enthusiasts and not by a central organization. Some coins are plated with metal and others use pure silver or gold.

the back of the coin where its value lies; It contains the private key of the actual bitcoins. Owners can use this key to redeem BTC online. Also, each coin has its own individual private key. Therefore, even if someone stole it or tampered with it, they would only be able to access BTC with that particular currency. On the other hand, if this is a digital wallet, the entity will have access to all the cryptocurrencies stored within it.

To further mitigate tampering, the private key is stored in a 3D sticker on the back of the coin. When the label is peeled off, it leaves a recognizable mark. If there is a mark on your coin, you will know it has been tampered with.

The first physical bitcoin

Physical representations of Bitcoin have been around for a long time now. Over the years, many different renditions have also appeared, each with different synthetic materials, values, and purposes. However, it all started with Casascious Coin, which was created by Mike Caldwell in 2011.

Caldwell minted a set of physical coins. It started with 0.5 and 1 BTC copper coins and even expanded to a gold-plated bar worth 1000 BTC. By 2013, Caldwell had minted approximately 27,000 coins. However, it was forced to suspend its operation due to restrictions from the Financial Crimes Enforcement Network (FinCEN), a branch of the Treasury.

They told him that minting physical bitcoins would qualify him as a money sender. Thus, he will have to register at the federal level if he wants to continue selling coins.

What is the value of coins?

The answer to this question seems relatively simple – a physical bitcoin is worth how much BTC is in its private key. However, it is not so simple. Due to the scarcity of coins, the price is often more than the BTC stored in the digital wallet.

Another factor for Bitcoin’s physical value is the materials used to create the coin. As discussed above, these coins are made of different materials. They can be plated with metal, made of gold, silver, or even plastic. The price of a coin will rise if the material it is made of is very expensive. For example, a coin made of gold will be more expensive than a coin that uses metallic plating.

Attainment also plays an important factor. These coins are rare and unique due to the materials used, the printed logo, and the limited supply. A coin that was minted long ago will be a rare collectible, especially if there are few other coins of a similar nature to it. As such, its value will be independent of the value of the bitcoins stored in the private key. People may want to buy it because of its rarity, similar to movie posters or coins that are no longer in circulation.

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