It's not called an "error." The term "error" means a coin that was made with defects at the Mint. But this coin shows PMD, or Post-Mint Damage. The damage occurred after it left the Mint. The date can't be 1886....no Half Cents minted at that time. I think it's a 1826.
That definitely makes sense... I think I meant error more in the sense that someone punched a hole through their very old coin... it may not have been old at the time though I suppose
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