BTC falls below $90K as 2,000 Bitcoin Casascius Coins Awaken After 13 Years

The 2,000 Bitcoin Casascius coins, two physical coins with 1,000 BTC each, were suddenly activated after over 13 years of complete dormancy. Over $179 million worth of Bitcoin was unlocked on Friday, as revealed by on-chain data, in one of the rarest events in the history of physical Bitcoin collectibles.

One coin was minted in October 2012, when the price of Bitcoin was $11.69, while the other coin is even older, dated to December 2011, when Bitcoin was only $3.88. The older coin alone represents a theoretical return of 2.3 million percent.

What Are Casascius Coins? A Look Back at Their Origins?

Casascius coins were created between 2011 and 2013 by Utah entrepreneur Mike Caldwell. Physical coins or bars made of Bitcoin, Casascius became iconic for bridging the digital and physical worlds of crypto.

The coins held a private key, which was printed on a piece of paper inside the coin, which was covered with a tamper-proof hologram. They ranged from 1, 5, 10, 25, 100, 500 and 1,000 BTC, making them the most valuable physical crypto collectibles to date.

Caldwell stopped production due to a notice he got from FinCEN, which implied that minting these coins could be considered as running an unlicensed money-transmitting business.

How Casascius Coins Function and Why They’re So Rare ?

According to records, 16 of the 1,000 BTC bars and 6 of the 1,000 BTC coins were ever minted. Once the holographic seal is peeled and the private key is redeemed, the coin’s collectible and Bitcoin value are no longer paired—its BTC is transferred on-chain, and the tangible coin becomes a novelty item.

Redeeming a Casascius coin doesn’t necessarily result in Bitcoin being sent to the market immediately, however. Many collectors simply transfer their BTC to a more secure digital wallet without selling.

One recent example in July is a 100 Bitcoin Casascius coin owner, “John Galt”, who redeemed his BTC Casascius coin only to transfer the funds to a hardware wallet. He said the move was about safety, not liquidation. “Having 100 BTC is life-changing for anyone. But the thing is, I’ve had it for so long that this was more about staying safe than suddenly getting rich,” he said.

Conclusion: The Significance of 2,000 Bitcoin Casascius Coins Moving

The unexpected unlocking of 2,000 Bitcoin Casascius coins is a strong testament to Bitcoin’s long-term viability and the incredible profits early adopters are still realizing. Although this event includes over $179 million in BTC, it doesn’t suggest that a large sell-off is imminent. Rather than a “dead end”, it’s more a case of early adopters moving their holdings to safer, more modern storage as these new users become interested in Bitcoin collectibles and blockchain history. Waking up these Casascius coins only further cements their mythical status within the crypto community and illustrates how much inactive wealth is still spread out across the first Bitcoin wallets.

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Disclaimer: This article is for informational purposes only and does not constitute financial advice. Cryptocurrency investments are highly volatile and risky. Always conduct your own research and consult with a qualified financial advisor before making any investment decisions.