FAQ
What is an NFT?
An NFT is a non-fungible token, meaning it is unique, digitally secured on the blockchain, and cannot be replaced or replicated. In the world of decentralized finance, NFTs now offer a certified digital representation of an asset and its ownership.
Asset-backed NFTs are one-offs and can never be diluted, replaced or replicated, yet offer certified, digital ownership representation in the physical asset.
Outside of BlockCoin’s tokenization of physical assets via NFTs, other notable industries entering the asset backed tokenization market include real estate, rare wines, fine art, rare collectables, and historical memorabilia.
BlockCoin NFTs are asset-backed by rare, Pre-1933 US minted coins and are tied directly to the value of the coins. Each NFT represents a certified block of ownership in these coins and offers a lower barrier of entry for those looking to enjoy the coin collector’s market.
Each of the NFTs minted at BlockCoin represents a portion of one rare, sought after Pre-1933 gold or silver US minted coin.
- Coins certified by the top industry grading services & insured by a major internationally recognized insurance company.
- NFT ownership is secured by real assets that are tangible and have historically appreciated over time (Pre-1933 Collectible Coins).
- Each NFT comes with a digitized representation of the actual coin.
- Low acquisition cost enables one to acquire & accumulate partial ownership of some of the most notable and exclusive collectible coins.
- There is no need to store coins in a safe or bank safety deposit box.
- The NFT represented assets are rated by the top industry grading services and insured by a major internationally recognized insurance company.
- Tokenization of physical coins is a unique way to unlock liquidity via NFTs.
- Accumulating 100% of a coin’s NFTs means you retain physical rights to the coin.
What is Block Ownership?
block ownership is the percentage of ownership a person has in any asset. It could be a small portion, or it could be nearly all of it. If you own any stocks, you are a percentage owner of that stocks underlying company; you own a block or blocks.
Block ownership in historically appreciating assets like Pre-1933 US minted gold and silver coins allows collectors to take advantage of a marketplace whose barriers to entry were, in many instances, quite high.
With BlockCoin, a collector no longer has to fully purchase a rare coin to enjoy it. Rather, a collector can purchase a block of the coin, with the block value commensurate with its percentage of the physical coin.
Block ownership can be a solid approach for those who are looking to split the cost of a real asset between individuals or are inhibited by the “full cost” of the asset.
Block ownership allows for collectors to accumulate percentages in the asset over time; rather than all at once.
Why Block gold and silver coins?
The collection of Pre-1933 US minted gold and silver coins has long been an exclusive marketplace to those who could afford it.
For example, a rare 1913 Liberty Head Nickel recently sold for $4.2 million. There are very few of us who could afford to own this coin. However, should a coin like this one be portioned into blocks, to perhaps 1,000 blocks, the ownership barrier could possibly be dropped to $4,200 per block. This would make owning a portion of this coin far more achievable.
Now, should a coin as rare and desirable as this 1913 Liberty Head Nickel be portioned out to 10,000 blocks, the barrier of entry drops to $420 per block; and far more collectors could enjoy ownership.
Why Pre-1933 Government Minted Coins?
Rarity, Beauty and Desirability: A Brief History of Pre-1933 Coins
Less than ten years after the American Revolution concluded, The Coinage Act of 1792 was introduced as the first legislation to sanction the production of US coinage. Not only did the Act dictate the newly established US Mint to produce coins, but it also specified what coins would be produced, and what their face values would be.
Just two years after the Act was passed by Congress, the first US gold coins were minted and began circulating. However, during the first third of the 19th century, the US Mint was focused heavily on the production of silver coins, rather than gold coins.
By the 1830s and 1840s, demand for gold Eagle, Half Eagle, and Quarter Eagle coins became so strong that more were produced, circulated, and utilized as currency.
Face values:
The Coinage Act mandated that the Quarter Eagle carry a face value of $2.50, the Half Eagle a face value of $5.00, and the Eagle a face value of $10.00. At the time of their minting, the value of the gold within these coins was close to their face values.
Today, however, the face values are dwarfed by how much the gold content alone is worth on the open market; and face values of these coins are also dwarfed by how valuable many have become to collectors due to extreme rarity.
Rarity:
The Great Depression forever changed the US Mint, and the availability of US gold and silver coins. Faced with economic calamity during the Depression, President Franklin D. Roosevelt issued Executive Order 6102.
As per 6102, American citizens were ordered to return their gold to the bank in exchange for paper money. The order effectively outlawed much of the ownership of gold by many Americans, and not turning in your gold was punishable by jail time.
However, This allowed the federal government to efficiently collect and melt gold coins down into bullion, and to print US dollars in order to bolster its finances in a time of great crisis
This was the beginning of the end of the gold standard, however. Just two months after the enactment of 6102, Congress enacted a joint resolution erasing the rights of creditors to demand payment in gold. By 1971, Richard Nixon fully decoupled the value of the US dollar from gold altogether. Today, the US dollar is no longer backed by gold.
Now, because of the effects of FDR’s Executive Order 6102, it is remarkable that pre-1933 gold US coins still exist on the market today. In fact, it’s been estimated that perhaps 120 million gold coins have been melted down, making some coins incredibly rare to find, incredibly hard to acquire, and incredibly expensive to own.
The introduction of block ownership of Pre-1933 US Minted gold and silver coins is changing everything. While desirable Pre-1933 US Mint coins are still rare, and always will be, BlockCoin’s revolutionary tokenization of collectible coins now allows far more people than ever to enjoy and participate in rare coin collecting.