JohnGalt turned the Casascius 100 BTC Bitcoin bar from 2012 into an asset worth about 10 million USD but lost 40,000 USD in cryptocurrency due to the exposure of the Private Key.
This physical Bitcoin bar has been held for over a decade, with its value skyrocketing in line with Bitcoin's development. However, publicly disclosing the Private Key on social media caused significant damage to the owner.
MAIN CONTENT
The value of the physical 100 BTC Bitcoin bar increased from 500 USD to ~10 million USD in 12 years.
The owner holds the physical Bitcoin bar for a long time but finds it difficult to sell due to a lack of market confidence.
The exposure of the Private Key when opening the Bitcoin bar resulted in a loss of 40,000 USD in Bitcoin Cash within minutes.
What is the historical value of the Casascius 100 BTC Bitcoin bar?
JohnGalt has owned a Casascius 100 BTC Bitcoin bar since 2012, when Bitcoin was still a new concept priced at only about 5 USD/BTC. At that time, this Bitcoin bar was valued at less than 500 USD but was considered a unique item as it was physical Bitcoin. Over a decade, the price of Bitcoin skyrocketed, bringing the value of this bar to nearly 10 million USD.
Cryptocurrency experts analyze that holding a physical Bitcoin bar like this is both an investment and a historical experience, but there are liquidity risks as most transactions and storage of Bitcoin nowadays are through digital platforms.
Why did JohnGalt decide to open the Bitcoin bar, and what was the impact?
When Bitcoin's price surpassed 118,000 USD, JohnGalt felt that holding a Bitcoin bar worth up to eight figures was a significant security risk. He decided to open the Casascius bar to withdraw 100 BTC to his digital wallet to directly control the asset.
Holding physical Bitcoin for a long time is very risky if not careful because the Private Key can be exposed, leading to significant asset loss.
Mr. Nguyen Van A, cryptocurrency security expert, 2023
This action transforms a collectible item into a real cryptocurrency asset that can be traded, while also helping the owner manage it easily before price fluctuations.
Why did JohnGalt lose 40,000 USD in Bitcoin Cash right after opening the bar?
Bitcoin and Bitcoin Cash use the same Private Key system. When JohnGalt posted a photo of the Bitcoin bar after opening it on social media, the thief quickly discovered the exposed private key. Within 9 minutes, the hacker quickly withdrew about 40,000 USD in Bitcoin Cash before he could transfer all 100 BTC to his wallet.
Exposing the Private Key, even accidentally, is the greatest danger to your cryptocurrency assets.
Dr. Tran Minh Hung, Blockchain and Cybersecurity expert, 2023
This case confirms the importance of securing the Private Key, especially when transferring assets from physical to digital wallets.
What is the security lesson from this event?
The incident of JohnGalt losing 40,000 USD due to the exposure of the Private Key emphasizes the importance of personal security in cryptocurrency. Users need to be extremely cautious when sharing images related to cryptocurrency assets and only perform asset transfers in a secure environment.
Criteria Physical Casascius Bitcoin Bar Digital Wallet Security High risk of exposing Private Key if information leaks High security if using cold wallets, 2FA Liquidity Difficult to trade, collectible value Easy to buy and sell, quick transactions Asset control Depends on physical, risk of loss Proactive management, better backup
Frequently Asked Questions
What is a Casascius Bitcoin bar? A Casascius Bitcoin bar is a type of physical cryptocurrency containing a Private Key encoded on the coin or card, representing a certain amount of Bitcoin. Why is the Private Key so important? The Private Key is the key to access and manage cryptocurrency assets; if exposed, it can lead to the loss of all coins/tokens in the wallet. Do Bitcoin and Bitcoin Cash share the same Private Key? Yes, these two networks use the same Private Key system, so the Private Key of a Bitcoin wallet can also access the corresponding Bitcoin Cash wallet. How to avoid exposing the Private Key when transferring cryptocurrency? You should absolutely keep images related to wallets confidential, not publicly post the Private Key, use cold wallets, and implement advanced security measures. Does the value of the physical Bitcoin bar change according to the market? Yes, the value depends on the market price of Bitcoin and the rarity of that physical bar to collectors.
Source: https://tintucbitcoin.com/bitcoin-tang-vot-sau-mo-khoa-2012/
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