Historic Bitcoin Awakening: Rare Casascius Coins Unleashed After 13 Years
By: Eliza Bennet
In an unprecedented event, two physical Casascius coins, long considered dormant, were activated on Friday, releasing an astonishing $179 million in Bitcoin into circulation. Each coin held 1,000 BTC, and these vintage collectibles have not been touched for over 13 years. These unique coins were minted in an era when Bitcoin's value was dramatically lower, marking a historic milestone in the cryptocurrency landscape.
Onchain data reveals that one of the coins was minted in October 2012, when Bitcoin traded at a mere $11.69, while the other dates back to December 2011, a time when BTC's price stood at just $3.88. These coins represent substantial theoretical gains, with the December 2011 coin yielding approximately a 2.3 million percent return, showcasing the explosive potential of early Bitcoin investments.
Casascius coins, produced by Utah entrepreneur Mike Caldwell between 2011 and 2013, serve as physical manifestations of Bitcoin. Each metallic coin concealed a private key beneath a tamper-resistant hologram. The concept functioned on a simple premise: the individual who broke the hologram could claim the Bitcoin encoded within. Once the private key is revealed and utilized, the coin effectively loses its Bitcoin value, although its collectible worth remains intact.
These particular coins are part of a rare series, with only 16 of the 1,000 BTC bars and six of the 1,000 BTC coins ever being minted, emphasizing their historic and collectible value. Caldwell's operation came to a halt following inquiries from FinCEN, over potential implications regarding unlicensed money transmission activities.
The activation of these coins occurred amidst a volatile period in the markets. Data from CoinGlass indicated a massive 11,588% liquidation imbalance, predominantly wiping out long positions, as Bitcoin traded below $90,000. This market turmoil underscores the uncertainties present in the cryptocurrency space, often resulting in unexpected price movements.
