Canada gold mine on sale for $2 million in bitcoin

Fri Jun 13, 2014 5:32am IST

A Bitcoin sign is seen in a window in Toronto, May 8, 2014.    REUTERS/Mark Blinch/Files

A Bitcoin sign is seen in a window in Toronto, May 8, 2014.

Credit: Reuters/Mark Blinch/Files

Related Topics

Coal Mining In The Punjab

Coal Mining In The Punjab

In Choa Saidan Shah miners dig coal with crude pick axes and load it onto donkeys to be transported to the surface earning a team of 4 workers around $10 to be split between them.  Slideshow 

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 virtual currency.

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 bitcoins. here

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 profitable.

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.

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)

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

Hacking

TECH SHOWCASE

Samsung Results

Samsung Results

Samsung downbeat on Q3 prospects as profits slide.  Full Article 

Under Scrutiny

Under Scrutiny

Factbox - Google under European regulatory spotlight.  Full Article 

Internet Effort

Internet Effort

Facebook mobile app to offer free, limited Internet in Zambia.  Full Article 

Reducing Workforce

Reducing Workforce

Apple to lay off about 200 people at Beats - Bloomberg.  Full Article 

New Offering

New Offering

Amazon quickens push into tough local services market.  Full Article 

Drone Pioneer

Drone Pioneer

China's drone king says the revolution depends on regulators.  Video 

Telemedicine Service

Telemedicine Service

Khosla-backed startup hopes to bring doctors to patients' mobiles.  Full Article 

Sony Earnings

Sony Earnings

Sony warns smartphone weakness will brake profit progress after Q1 surge.  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage