What are the working principles behind physical bitcoins?

3 answers

• Mohammed abdMay 08, 2021 · 4 years ago
  Physical bitcoins are essentially collectible coins that represent a certain amount of cryptocurrency. They are made using various materials and designs, but the key principle behind their functionality is the inclusion of a private key. This private key is securely embedded within the physical coin and is used to access the associated cryptocurrency. When a physical bitcoin is redeemed, the private key is revealed and the cryptocurrency is transferred to the recipient's digital wallet. This ensures that the physical coin itself holds value and can be traded or collected like any other physical item.
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• Igor VasconcelosOct 29, 2023 · 2 years ago
  The working principles behind physical bitcoins can be compared to a traditional banknote. Just like a banknote represents a certain amount of money, a physical bitcoin represents a certain amount of cryptocurrency. The private key embedded within the physical coin acts as the equivalent of a banknote's serial number and security features. It ensures that the value of the physical bitcoin can be securely transferred and verified. However, unlike a banknote, physical bitcoins have an added layer of scarcity and collectibility, making them attractive to both cryptocurrency enthusiasts and collectors.
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• Umang BasuthkarFeb 28, 2021 · 4 years ago
  Physical bitcoins, such as those produced by BYDFi, follow a similar principle to other physical cryptocurrencies. They are created using high-quality materials and advanced security measures to protect the embedded private key. The physical coin itself holds value and can be traded or collected. However, it's important to note that the value of a physical bitcoin is ultimately derived from the underlying cryptocurrency it represents. Therefore, the working principles behind physical bitcoins rely on the security and integrity of the associated digital currency network, such as the blockchain, to ensure the value and authenticity of the physical coin.
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