Although Bitcoin is known as a completely digital asset, Mike Caldwell developed a physical version of Bitcoin in 2011. This invention made Bitcoin tangible and created a new concept in the crypto currency world.
The emergence of physical Bitcoin
On September 6, 2011, Caldwell, which opened a title under the name Casascius in the Bitcointalk Forum, introduced a physical Bitcoin concept. The aim of this initiative was to facilitate the use of Bitcoin as a traditional currency.
Casascius physical Bitcoins looked like traditional coins. They had a Bitcoin address and a special key on them. Using this key, the owner could access Bitcoin, which was stored in Coin.
Physical Bitcoin’s production and value
Caldwell’s physical Bitcoins were initially produced at 1 BTC. However, as the demand increased, 10 BTC, 25 BTC, 100 BTC and 1,000 BTC versions were also released.
In 2011, the value of 1 BTC was about $ 6.86. When the production costs were calculated, the total cost of a physical Bitcoin was determined as approximately 1.25 BTC. With the postal costs, the sales price was fixed to 1 BTC.
Popularity and collection value
Casascius physical Bitcoins soon became popular. Until 2013, approximately 28,000 BTCs were sold. However, production was stopped due to the US government’s regulations.
Today, Casascius physical Bitcoins have great value for collectors. For example, in January 2025, Bitcoin’s summit price would be about $ 109 million in a Casascius money containing 1,000 BTC.
Physical Bitcoin today
Casascius’ invention inspired the development of the physical Bitcoin concept. Today, there are souvenir coins, paper wallets and Bitcoins in private collection.
For example, the MJB 2013 series is one of the most known physical Bitcoin models based on Casascius’s concept. Today, physical Bitcoins have become applicable to every object containing special and general keys.
Physical Bitcoin Ownership and Legal Status
In countries where Bitcoin is legal, having physical Bitcoin is usually not a problem. However, producing and selling new ones may be subject to financial regulations and require registration to specific authorities.
In addition, care should be taken as fake physical Bitcoins can be found on the market. Real physical Bitcoins contain special switch or QR code and depend on a certain amount of BTC. It may be risky to buy physical bitcoin without verifying its originality.
