Physical Bitcoins Definition
Physical Bitcoins, also known as Bitbill, are a type of Bitcoin wallet that are designed to store the digital cryptocurrency in a medium that is safe offline. Instead of being a purely digital vehicle for Bitcoin transactions, they are physical coins or units that hold an essential value as a digital code.
Physical Bitcoins Key Points
- It is a tangible version of the popular digital asset.
- Each physical Bitcoin contains a certain amount of Bitcoin as a digital code, usually embedded on a strip and protected by a holographic sticker.
- These physical items are commercially made and are often used for gift or novelty purposes.
- Useful for storing Bitcoins offline, safe from hacking risks.
What are Physical Bitcoins?
Physical Bitcoins are tangible objects that contain a certain value worth of Bitcoin. They are often made from metal or plastic and contain an embedded strip that holds the digital code, or private key, to unlock and access the Bitcoin. This strip is usually covered with a holographic sticker to prevent tampering.
Why use Physical Bitcoins?
Whilst digital Bitcoins are the most popular and common form of the cryptocurrency, physical Bitcoins offer a different method of storing and using the digital asset. For those who prefer not to deal with online wallets and digital codes, physical Bitcoins provide a simpler and arguably more secure way to store and transport the digital currency. Furthermore, they may be used as a novelty or gift item, as they physically represent this popular digital asset. They also serve the purpose of securely storing Bitcoin with no risk of hacking or digital theft.
Where can Physical Bitcoins be used?
Physical Bitcoins hold actual Bitcoin value, and thus can be used where Bitcoin is accepted as a means of payment. However, to spend the Bitcoin, the code embedded in the coin would need to be entered online. It is worth noting that some versions do not actually contain any real Bitcoin value but serve solely as a novelty item.
When were Physical Bitcoins introduced?
The concept of physical Bitcoins was introduced in the early years of Bitcoin, around 2011. One of the earliest and most well-known providers of these items was a company called Casascius, which stopped production in 2013 due to regulatory issues. Since then, many other companies and individuals have produced their own versions of physical Bitcoins.
How are Physical Bitcoins made?
Physical Bitcoins are usually made from durable materials like metal or plastic. The Bitcoin value is stored on a strip often embedded on one side of the coin. The embedded strip contains the private key, the digital code required to unlock and use the Bitcoin. This strip is typically concealed by a holographic sticker to prevent unauthorized access to the key.
