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

Rajalakshmi (C), 28, smiles after winning the Miss Wheelchair India beauty pageant in Mumbai November 26, 2014. REUTERS/Danish Siddiqui

Miss Wheelchair India

Seven women from across India participated in the country's second wheelchair beauty pageant, which aims to open doors for the wheelchair-bound in modelling, film and television, according to organisers  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:

Restricting Monopoly

Tech Showcase

"App Graph"

"App Graph"

Twitter to start tracking users' mobile apps  Full Article 

Internet Devices

Internet Devices

Internet-connected device sector deals accelerating, report finds  Full Article 

Google in Europe

Google in Europe

Insight - Behind Google's Europe woes, American accents  Full Article 

Uber Lawsuit

Uber Lawsuit

Uber CEO must turn over emails in gratuity lawsuit, U.S. judge rules  Full Article 

Wikileaks Hacker

Wikileaks Hacker

Icelandic hacker says guilty of stealing money from Wikileaks  Full Article 

Motorola Case

Motorola Case

U.S. court rejects Motorola Mobility price-fixing appeal  Full Article 

E-Commerce Boom

E-Commerce Boom

Online grocers come up trumps in India's e-commerce boom   Full Article 

Reuters India Mobile

Reuters India Mobile

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