Physical bitcoin producer Bitbill applies for cold storage patent

A patent for storing digital currency such as bitcoin in a physical token has been filed by Bitbill founder Douglas Feigelson.

AccessTimeIconJul 4, 2013 at 7:00 p.m. UTC
Updated Feb 9, 2023 at 1:25 p.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

The creator of Bitbill, Douglas Feigelson, has filed a patent application entitled "Creating and using digital currency", and covers a general method of storing digital currency in a physical token. While the term is not used in the patent application, it is directly aimed at a generic method of so-called cold storage of cryptocurrency, of which Bitbill is not the only method.

The application, filed under 20130166455, states:

Among other things, a physical device carries value and can be physically delivered in a transaction. The physical device includes a representation of the value carried by the physical device. The representation is usable to transfer the value from the physical device to a digital domain. A security feature can change from a state indicating that the value carried by the physical device has not been compromised to a state indicating that the value carried by the physical device may have been compromised. The change in state is detectable, the representation of the value carried by the physical device being inaccessible except in a manner that causes the security feature to change state.

That is a fairly general description, and part of the patent references Bitbill as just an example application of the technology. Furthermore, Feigelson makes the statement, "Bitbills are the first and only Bitcoins in physical form".

bitbillpatent1
bitbillpatent1

Leaving aside the debate over who was first and what technologies are being used, Bitbill is not the only physical form of bitcoin as there are Casascius coins, Bitcoin paper wallets, and Firmcoin (currently at the prototype stage).

an instant message exchange between the Casascius coin creator, Mike Caldwell and one of the Bitbill co-founders, in which the Bitbill co-founder clearly states that they believe Casascius coins use Bitbill technology. However, the spokesperson would not be drawn on how the situation was to be dealt with.

While this patent may have been taken as a defensive measure, there has been no word from Bitbill to set minds at rest that litigation will not follow. In turn, the broad nature of the patent could have a potential chilling effect on the bitcoin ecosystem.

Finally, the patent has not been granted yet. There are suggestions that prior art exists which may yet invalidate the patent.

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.