A Casascius Physical Bitcoin wallet holding 25 BTC transacted on-chain for the first time since its creation in December 2011, granting the coin owner access to approximately $1.78 million in Bitcoin on Tuesday. The redemption occurred when the owner peeled a tamper-evident hologram to reveal the private key embedded in the physical coin, a collectible originally worth less than $100 at the time of minting. Casascius Physical Bitcoins were produced between 2011 and 2013 by Bitcoin developer Mike Caldwell as conversation pieces to introduce the cryptocurrency concept, with each coin containing Bitcoin values ranging from 0.1 to 1,000 BTC secured behind physical holograms.
Casascius Coins Embed Private Keys Behind Tamper-Evident Holograms
Each Casascius coin was built with its own Bitcoin address and a private key hidden behind a tamper-evident hologram, according to the coin's website. The owner must peel the hologram to reveal the private key and gain access to the linked BTC. Mike Caldwell originally designed the coins to "introduce a proof-of-concept, a conversation piece to help people talk to others about Bitcoin." The physical coins became coveted collectibles as Bitcoin's value increased, with unredeemed coins now listed at a premium to their underlying value on secondary marketplaces like eBay. Even unfunded coins that never received a Bitcoin allotment sell for hundreds of dollars.
236 of 345 Series 1 Coins Previously Redeemed
The latest redemption comes from the Series 1 25 Bitcoin batch, of which 345 coins in total were produced, according to Casascius Tracker data. At this time, 236 coins have been redeemed, with Tuesday's transaction marking the most recent redemption. Galaxy Research reported the on-chain sweep of address 1tLPQwd6wjvZpreivwHsEuU2ceSv6zaon for 25.0000 BTC valued at $1.78 million. While coin redemptions have been steadily climbing over the years, the pace remains well below the end of 2017 and early 2018, when Bitcoin first rose near $20,000 for the first time.
Recent Redemptions Include Multiple 25 BTC Coins in April and May
Last October, when Bitcoin jumped to its all-time high of $126,080, 46 coins were redeemed with values ranging from 0.5 to 25 BTC, totaling approximately $3.15 million for the top coin at the time. Last month, at least one 25 BTC coin was redeemed. Three other 25 BTC coins were cashed in at the end of April, according to redemption tracking data.
FAQ
What is a Casascius Physical Bitcoin?
A Casascius Physical Bitcoin is a collectible coin created between 2011 and 2013 by Bitcoin developer Mike Caldwell. Each coin contains a private key hidden behind a tamper-evident hologram that provides access to a Bitcoin wallet holding between 0.1 and 1,000 BTC. The coins were originally designed as conversation pieces to introduce people to Bitcoin.
How much Bitcoin was redeemed from the 15-year-old Casascius coin?
The redeemed Casascius coin contained 25 BTC, valued at approximately $1.78 million at the time of redemption on Tuesday. The wallet was created in December 2011 when the 25 BTC was worth less than $100. The coin came from the Series 1 25 Bitcoin batch, of which 345 total coins were produced and 236 have now been redeemed.
