There are stock images of a physical Bitcoin, despite BTC being a digital currency existing in cyberspace. Although the images are created on a computer, physical Bitcoin is real and can still be purchased.
Most of the physical coins are collectibles that bear the Bitcoin logo. However, some of them hold real Bitcoin keys.
What Is Physical Bitcoin?
A Bitcoin physical coin is a metal or plastic coin with the Bitcoin logo. Some are made of metals like brass, silver, or gold, potentially adding to their value. Others may be made of plastic or have a metal plating over a less valuable material. In these cases, a physical Bitcoin appears and feels like a real coin.
However, not all Bitcoin one can touch and hold is round. Some collectible Bitcoin features different forms, ranging from coins and cards to bills. Auction houses such as Stack’s Bowers focus on the rarest of crypto collectibles, normally resembling coins.
In the 2021 crypto bull market, a collectible Bitcoin physical coin made by Casascius (no longer in production) sold for $1.69 million. The coin was minted in 2011 and it held 25 Bitcoin tokens.
Physical coins also hold private keys for Bitcoin on the blockchain that users can spend or send to other wallets. This use is less common, but firms like Ballet (founded by Bobby Lee, who also launched the BTCC crypto exchange) still sell collectible Bitcoin that holds actual Bitcoin in different denominations.
What Is Physical Bitcoin Used For?
Many physical coins that bear the Bitcoin logo are collectibles or just for amusement value. Nonetheless, in rare cases, physical coins can hold keys to actual Bitcoin. Older examples that are collectible and hold Bitcoin can sell for hundreds of thousands or millions of dollars.
Collectible Items
Bitcoin collectible coins range from various shiny trinkets available on eBay and Amazon to valuable coins in high demand with collectors globally. In various cases, the collectible value of a coin that holds Bitcoin private keys can surpass the value of the Bitcoin held in the coin’s wallet address.
The most valuable among them are the coins released by Casascius. The Casascius coins can no longer be bought directly but are popular at auctions, with ‘loaded’ coins still holding Bitcoin. Lealana physical coins are also common with collectors.
Stored Bitcoin Value (Rare)
The mass-produced novelty coins sold on eBay and Amazon hold no Bitcoin and are not popular among the collectors. Nevertheless, coins that hold Bitcoin have significant value. These are much less common and normally circulate on auction sites like rare coin dealers and Stack’s Bowers.
Firms like Ballet still offer physical coins that hold a Bitcoin balance. The coins come loaded with a balance of 0.001 BTC or 0.25 mBTC.
Regulatory needs for physical Bitcoin vary by jurisdiction, which limits the availability of coins in most areas. For instance, in the United States, the dealers may need to register as a Money Services Business (MSB) and look for individual money transmitter licenses for every state they transact business.
Physical Bitcoin Value: How Much Is It Worth?
Many physical coins with the Bitcoin logo hold entertainment value or serve as a means of showing support For Bitcoin as a crypto. Nonetheless, collectible coins and those that hold real Bitcoin have some real value. The coins that hold Bitcoin show the value of the initial wallet on the coin.
Nevertheless, if the coin was previously redeemed or tampered with, the face value might no longer be accurate. Every coin that holds BTC also has a private key that helps access the coin’s Bitcoin wallet. The wallet address might be visible, which means it is also possible to add to the value without accessing the wallet’s private key.
How To Determine Whether A Physical Bitcoin Is Real
The best way to avoid crypto scams when purchasing physical Bitcoin is to buy from a reputable source. For instance, a Ballet coin acquired directly from Ballet is safer than buying a Ballet from another source. On the other hand, for higher-value coins like Cacasius collectibles, an auction house such as Stack’s Bowers offers a safer alternative.
A physical Bitcoin holding BTC also shows a Bitcoin wallet address on the back of the coin. To verify the BTC balance of the coin users need to find the wallet address, use a blockchain explorer to verify the available balance, and verify the tamper-resistance features.
The Takeaway
BTC physical coins came in as a means of transacting with Bitcoins in the analog world. The earliest coins, including those created by Casascius and Lealana, fetch auction prices far surpassing their face value.
Currently, users and enthusiasts can still acquire physical Bitcoin, but most coins available via established platforms like Amazon and eBay are novelty coins without any real value. Auction houses like Stack’s Bowers and providers such as Ballet still offer means of purchasing physical coins loaded with BTC.
