This week, 21 Inc. unveiled its Bitcoin computer and left many thinking "Was that it?" For $399, 21 Inc will sell you a tiny computer with a customized chip that allows you to generate roughly 10 cents worth of bitcoin per day. The company envisions, "A future where digital currency serve as a lubricant for a wide variety of electronic transactions..." This article points a few reasons why 21 Inc.'s vision is flawed.
this week's announcement left a lot of people confused. For $399, you can get a tiny computer with a customized chip that allows you to generate bitcoins. An incredibly small quantity of bitcoins, in fact — according to one back-of-the-envelope calculation, it will generate around 10 cents' worth of bitcoin per day if run constantly. And depending on where you live, the electricity required to power the device could cost more than the value of the bitcoins generated. The backers of 21 believe that the ability to generate small quantities of bitcoins is going to become a standard component in digital devices — just as a wifi chip is today. They envision a future where digital currency serves as a lubricant for a wide variety of electronic transactions that aren't possible with today's computers.