What is a physical bitcoin, and what is its worth?

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Even in this digital age where most data is secured in faraway servers and virtual accounts, many people still see value in storing precious assets in a locker or safe. Several individuals also shunned the idea of digital currency because they couldn't procure it physically like they would with traditional fiat. The creation of physical bitcoins was done with these pointers in mind.On the surface, physical bitcoins are similar to their fiat counterparts.

They are usually made from metals like brass, silver or even gold. They also have a logo printed on one side and their value on the other. However, the similarities between the two ends here.While centralized fiat coins have a specific value, the value of a physical bitcoin comes from a private key printed on its back.

This key holds the coin's actual value in a digital wallet – it could be 1 BTC or 100 BTC, depending on the maker of the coin.Also Read:What are staking pools, and how can they help you make a passive income?You can think of physical bitcoins as a bank card or a gift certificate. The paper or the card does not have any value. Rather, the magnetic strip on the front of the card or the certification on the voucher is what gives you access to the real currency.

Similarly, when it comes to physical bitcoins, it is not the coin that matters so much, but the private key mentioned on the back that’s important.How are physical bitcoins created?Most people who create physical bitcoins use a 3-D printer. The design itself varies as they are created by enthusiasts, not a centralized organization. Some coins are metal-plated, and some use pure silver or gold.The back of the coin is where its value lies; it contains the private key for the actual bitcoins.