A Casascius physical Bitcoin, created in 2011, was cashed out this week, with 25 BTC transferred from its associated wallet to the blockchain. At current prices, this Bitcoin is worth approximately $1.78 million.
25 BTC were transferred out
On-chain data shows that this wallet has made its first transaction since its creation. The private key embedded in the physical coin originally corresponded to 25 bitcoins, and when it was created in December 2011, the total value of this asset was less than $100.
Information disclosed by Casascius Tracker and Galaxy Research indicates that this physical coin belongs to the Casascius Physical Bitcoins issued between 2011 and 2013. After removing the tamper-evident holographic sticker, the holder can see the private key and transfer the corresponding BTC to their on-chain address.
Early Bitcoin collectibles
Casascius physical coins were launched by Mike Caldwell, an early Bitcoin developer and enthusiast, and were initially intended more as a physical representation of the Bitcoin concept. Each coin has an independent address and ranges in value from 0.1 BTC to 1,000 BTC.
As Bitcoin prices have risen over the years, these physical coins have gradually transformed from souvenirs into high-value collectibles. Even before they have been redeemed, their prices on the secondary market are often higher than the value of the Bitcoins they contain; some empty coins that have never been funded can sell for hundreds of dollars.
The amount of repayments has increased in recent years.
These physical coins have been continuously being cashed out by holders in recent years, but the overall pace is still lower than at the end of 2017 and the beginning of 2018. At that time, when Bitcoin first approached $20,000, cash-out activity increased significantly.
Last October, when Bitcoin reached an all-time high of $126,080, 46 Casascius physical coins were redeemed, with denominations ranging from 0.5 BTC to 25 BTC. The highest denomination coin was worth approximately $3.15 million at the time.
Last month, at least one more 25 BTC physical currency was redeemed. Three more physical currencies of the same denomination were redeemed at the end of April.
