Better than bitcoins-for-gold: Chinese Bitcoiner crafts physical bitcoins made of pure gold

We’ve heard of bitcoins-for-gold. A Chinese Bitcoiner has taken it a step further by creating “bitcoins” made out of pure

We’ve heard of bitcoins-for-gold. A Chinese Bitcoiner has taken it a step further by creating “bitcoins” made out of pure gold, according to Forbes citing a Chinese blog post.

The coins weigh 1 once each. Thus, the gold in each is worth $1310, based on gold’s current price per ounce.

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Perhaps we’re confronted with the problem found with currencies whose units carry intrinsic value. One bitcoin is only worth $620. In reality, however, the “bitcoins” themselves can be scanned and “separated” off the physical coins for transfer elsewhere. They are engraved with a QR code on the back. In theory though, it would be an interesting proposition if a secondary, “cash” market would open up for “physical” bitcoins, whose transactions aren’t bound to the blockchain.

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101 coins were crafted. Their total value is therefore either $62,620 or $132,310- or $194,930 when combined.

In any event, the coins are intended for private collection, not to be circulated in the market. One thing to be wary of: make sure the previous owner doesn’t keep a copy of the private keys.

Bitcoin and gold are often compared to one another due to their limited supply and deflationary nature. Enthusiasts may hope that one day the combo will be sought by investors as the ultimate hedge against inflation, while simultaneously diversifying their portfolio between physical and digital assets.

 

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