gold mine on sale for $2 million in bitcoin
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[June 13, 2014]
(Reuters) - Gold, the hard asset
long seen as the ultimate hedge against risk, has fallen so much out of
favor in recent years that the owner of a mine in Canada's historic
Yukon gold belt wants to sell the property for $2 million in bitcoin, a
The tiny, producing mine is being offered for sale by an
unidentified seller on BitPremier, a self-described bitcoin
marketplace for "luxury items and opportunities".
The mine, located right in Dawson City, the heart of the 1890s
Klondike Gold Rush, has the potential to produce up to 4,000 ounces
of gold a year, worth $5.9 million at current prices. The sale
includes $1 million worth of equipment.
"A well-respected, fully compliant and profitable company, any new
buyer could recoup their initial investment in as little as two
mining seasons," the sales advertisement says. It does not say
whether the owner would consider any other form of payment besides
Prices for gold have slumped by a third in the past 2-1/2 years
after a decade-long rally, leaving many mines struggling to stay
Bitcoin is the most prominent of a group of so-called virtual
currencies created by computers and accepted by some retailers as
payment on the Internet or in shops. Enthusiasts are drawn to
bitcoin's ideals of transparency and a lack of central or official
control, and use the digital currency as a hedge against currency
fluctuations. But critics say the near anonymity of transactions
makes bitcoins a magnet for drug transactions, money-laundering and
other illegal activities.
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Recent mishaps, including a bankruptcy fling from Mt Gox, a bitcoin
exchange, has brought the technology under heightened scrutiny and
seen the value of one bitcoin slide to about $610 from above $1,000
late last year.
(Reporting by Nicole Mordant in Vancouver; Editing by Frank McGurty;
and Peter Galloway)
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