After months of hype, the 21 Bitcoin Computer from 21 Inc was finally unveiled this week. Built atop the Raspberry Pi platform originally aimed at promoting the teaching of basic computer science in schools, the computer allows you to mine bitcoins in the background while doing regular computing stuff.
Mining is the energy-intensive process by which new bitcoins are added into circulation by number-crunching computers.
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On this topic IN ManagementThe irony is, the sum of bitcoins you can earn from this sideline is so small it is unlikely to cover the $399.99 cost of the device, let alone make anyone a profit. Those who buy it will be paying for the right to waste electricity servicing the bitcoin network in return for a bitcoin shaving.
21 Inc says the machine, which will be shipped from November, also "allows anyone to sell anything over the internet for bitcoin just by plugging a device into the wall and typing a few commands".
The Amazon listing for the product carries endorsements from former US Treasury secretary Larry Summers, venture capitalist Marc Andreessen and others, implying the device could be as revolutionary as the web.
According to Vitalik Buterin from rival project Ethereum, however, a quick analysis of the numbers shows that at best purchasers will be able to make $0.105 per day or $38.30 per year in bitcoin from the device.
But of course the computer is not supposed to be just a bitcoin miner, instead it is what the industry likes to call a devkit, which suggests it is really a means towards an endlessly stimulative app economy.
Indeed, 21 Inc expects its micro-transaction-accepting developer army might even disrupt the advertising-based business models of Google, Facebook and Twitter.
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