It's Happening .... The secrets of 21 inc revealed, and its what we hoped for. - page 9.

BitUsher

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Quote from: Alley on May 07, 2015, 08:31:24 AM

This wil be for non bitcoin experts that dont understand electricity costs. They will jump at a cheap appliance that makes them bitcoin.

Yes, this will likely also happen just like with mining in general today. Most small time miners who cannot properly plan for difficulty adjusting and do the math make unwise investments in ASICs and fail to make a ROI.

The difference here is the risk is minimal because there is little to no upfront costs and as soon as the user determines the electricity costs are to high they can stop mining or find cheaper electricity.

Either way , if it is done as a wise investment or flawed one mining will become more decentralized and new users will get exposed to bitcoin which will strengthen our ecosystem.

Alley

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This wil be for non bitcoin experts that dont understand electricity costs. They will jump at a cheap appliance that makes them bitcoin.

BitUsher

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Quote from: Klestin on May 07, 2015, 08:21:40 AM

Quote from: BitUsher on May 07, 2015, 07:57:55 AM

This is simply a blindingly good business plan, exotically gorgeous in fact. For of course the cost of the electricity required to mine for bitcoin is very much larger than that 25 per cent of the value of the bitcoin that we get to keep.

For anyone who has to pay for their electricity, this is a horrid idea. If the heat generated from the bitcoin miner isn't directly beneficial to the user, then the cost of the electricity spent mining must be weighed against the bitcoins earned. With a decently efficient chip, and with 100% of the results kept, this is very nearly a wash right now. At 25%, it amounts to theft.

This type of thing could make sense in a space heater or coffee warmer, but that's about it.

You bring up a fair concern. For some people the cost of electricity does not justify the savings on the free appliance and 25% mining /tx fees rewards. I would expect that there will be reviews and guides which go over the numbers and indicate which appliances are most efficient and agree the items which are used for heating like space heaters , coffee warmers , dehydrators, water heaters , ect... are likely to become the best candidates.

With 116million in backing and an aggressive campaign to make many different types of products they have a good chance of finding at least one product that is a home run and gets adopted by many.

TheRealSteve

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FUN > ROI

'guess I'll choose this thread to respond to
( dupe thread: https://bitcointalksearch.org/topic/decentralization-of-mining-is-returning-thoughts-on-21-inc-secret-plans-1053412 )

The idea of mining using appliances - including toasters - has come up before;
https://bitcointalksearch.org/topic/hackers-could-turn-toasters-into-bitcoin-mines-as-value-rockets-301742
https://bitcointalksearch.org/topic/toasters-to-mine-bitcoins-864943

The business model of tossing a bunch of these out for free and asking for a non-minor fee (75%) might be an interesting one. You have to wonder what sort of mining power they'd actually envisioning, though - i.e. something that (over all units) actually makes some double-digit percentage of the network hashing power, or a bunch of underpowered chips all playing the lottery.

Then again, this is all still based on an FT blog entry and not hard data. I'll wait for the Chinese interview to get published.

Klestin

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Quote from: BitUsher on May 07, 2015, 07:57:55 AM

This is simply a blindingly good business plan, exotically gorgeous in fact. For of course the cost of the electricity required to mine for bitcoin is very much larger than that 25 per cent of the value of the bitcoin that we get to keep.

For anyone who has to pay for their electricity, this is a horrid idea. If the heat generated from the bitcoin miner isn't directly beneficial to the user, then the cost of the electricity spent mining must be weighed against the bitcoins earned. With a decently efficient chip, and with 100% of the results kept, this is very nearly a wash right now. At 25%, it amounts to theft.

This type of thing could make sense in a space heater or coffee warmer, but that's about it.

BitUsher

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Decentralization of mining.

Mass adoption with subsidized or free consumable items with multiple products to insure at least one is successful.

Distribution of bitcoin assets with shared profits between the consumer and the manufacturer in a self sustaining business strategy.

116 million in venture capital to insure they can fund development and manufacturing of low cost ASIC appliances.

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The core business plan it turns out will be embedding ASIC bitcoin mining chips into everyday devices like USB battery chargers, routers, printers, gaming consoles, set-top boxes and — the piece de resistance — chipsets to be used by Internet of Stuff devices.

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According to our knowledgable sources, 21 Inc plans to “onboard” customers by giving many of these devices away for free,

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This is simply a blindingly good business plan, exotically gorgeous in fact. For of course the cost of the electricity required to mine for bitcoin is very much larger than that 25 per cent of the value of the bitcoin that we get to keep.

http://www.theregister.co.uk/2015/05/06/bubblicious_bitcoin_bonkers_business_bods/

http://ftalphaville.ft.com/2015/04/30/2127543/meet-the-company-that-wants-to-put-a-bitcoin-miner-in-your-toaster/

Topic: It's Happening .... The secrets of 21 inc revealed, and its what we hoped for. - page 9. (Read 11643 times)