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RE: Kialara Coin: The Physical Bitcoin Token I’ll Never Fund
When we have physical coins funded and value with a crypto, do their values rise and fall with the price of the cryptocurrency too?
When we have physical coins funded and value with a crypto, do their values rise and fall with the price of the cryptocurrency too?
Yes, definitely. They trade for a premium above the BTC value, so add a bit more to 1 BTC or however much is loaded on there. It's like buying a silver or gold $1 coin that's minted by a government. The government guarantees it's worth $1 in currency, but the spot value of the precious metal it contains is probably much higher.
For example, a one ounce silver coin would contain that much value in silver, say $15, plus the collector value of the coin itself, which may mean that collectors trade them at a dollar or two above the metal's spot price (just as a loaded BTC coin would be worth at least as much as the BTC value and slightly more for the collector value). In the case of Kialaras, people are paying over $1,000 above the BTC price, but few are funded, so it's mostly a commemorative art item.