sidhujag & Pruden,

you are going to get f*cked.  get out now.  this one doesn't look like its coming back:

It started back when the price was $13. Now look at it.

we joke but you know what?  this is one of the most important things that caught my eye back in Jan 2011 and why i got into Bitcoin back then:  the sheer, raw, unadulterated ingenuity of miners.  those videos of guys with equipment scattered all over their garages or basements, cords everywhere, fans blowing loud as hell, nuts, bolts, screwdrivers lying in wait.  these guys will do anything to make money.  that's what convinced me of what a true grassroots movement this is.  no gvt is going to have the willpower or manpower to go and kick in all these guys doors.  it just can't be done.  and yes, while mining has become more industrialized and more professional, these same guys are still the ones pointing their custom asics at the pools.  they are still independent.

you know what i'll do?

buy a few extra batteries, keep them rotating thru charges free at work, while keeping the phone constantly mining at full capacity.

true, this won't be for everyone.

but i think these companies could be building their own virtuous cycles on top of Bitcoin which could cause the next bull run in price.  if so, how would that affect the developing country person's decision making?  pay full price for an ordinary water heater, or almost free for one with a Bitcoin miner built in?

if they're going to essentially give the devices away for free, yes, those users will have to mine back at the company pool to pay the device off.

also, i don't think these companies would have invested in 21 w/o some larger plans:

“We think 21’s technology has the potential to span across a wide variety of industries and look forward to working with Balaji and the team.”
— Nagraj Kashyap, Senior Vice President, Qualcomm Ventures
“Bitcoin could be the internet’s next great protocol. With the blockchain’s distributed ledger and micro-transaction capabilities, it has the potential to become an enabling technology that expands well beyond digital payments. We’re delighted to be an investor in 21 and to work closely with Balaji and Ben.”
— Padmasree Warrior, Chief Technology & Strategy Officer, Cisco

that's ok.  there are hundreds if not thousands of businesses that could eventually participate.

i believe, on a macro level, that these companies are driven by the same attraction we all have for Bitcoin; usage of a fixed supply, apolitical currency that should at least over the long term be stable in value.  not only that, it has the potential to increase, not decrease, in value in a pretty large way.  this innovative 21 business model facilitates the integration of Bitcoin into their business through the proper incentives.

i don't see how taking today's mining pools and adding dozens of phone maker, router maker, and other device making mining pools with their millions of users can result in centralization.

why would you need more efficiency when POW is designed to force real resource expenditure costs so as to prevent lazy, cheapass hacks?

the 21 mining chip rollout is mostly about smartphones.

this is a well documented fast, growing mkt that is leapfrogging laptops/desktops in developing nations like Africa.  there are literally billions of new customers on the line and they also happen to be unbanked.  this is a way to subsidize getting phones into their hands.  the other problem has been getting ppl in developed nations to use their credit cards with their phones.  the UI's have been clunky (ever tried buying anything from a website from your phone?) and no one quite trusts doing it.  Apple Pay has been failing miserably basically b/c the bank verification process has been defrauded with stolen cc info and there is no good way to marry the two technologies with all the ongoing hacks.  there is no safe way for the traditional fiat system to secure smartphone payments.  until now with 21.  

the mining chip appears to be quite efficient and will most likely include a private/public keypair to and from which BTC can be sent.  this will act like a secure element hardware device where the keys can't be hacked.  much like a Trezor or what LedgerWallet is trying to build into the sandboxed security elements or trusted space.  this will enable not only the micropayments from the mined BTC but a fully functional and safe wallet on the phone which should enable widespread ordinary commerce in these developing nations.  you know this is why Qualcomm is involved.  the smartphone makers will love it b/c this is a way to get new users of their phones in exchange for their paying electricity to charge their phones and mine.  battery life is likely not to be a factor as most ppl keep their phones plugged in most of the time.  i know i do while at work all day and at night while at home or sleeping.  the phone might as well be mining during those times and generating usable BTC for later services.  plus, electricity at work is free.  as well, this is a foolproof way to authenticate the phone with their wireless network on initialization.  Cloud service costs will be easily defrayed with micropayments.  makers of the smartphones will receive BTC payments which they can either cash in immediately or hold for future appreciation.  remember, we are still dealing with a deflationary currency (fixed supply) with huge upside potential and with the smartphone makers seemingly willing to determine their own financial future with this move, this will ensure Bitcoin's future.  and with that, a tremendous increase in value of BTC going forward as we have always believed.  this is the binary future unfolding to the upside before our very eyes.  this is also about the tech industry breaking free of the reins of Wall St which i've well characterized for a couple of years now.  

the great thing that will result is the decentralization of mining across millions and more likely billions of devices round the world all at the individual level that can't possibly be shut down unless you believe in unified gvt violation of human rights.  i don't.  if you do, you'll have to explain why we still have wars, conflicts, cross border intelligence agency hackings, Stuxnet, Sony hacks, China & Russia stockpiling gold while the US is disgorging gold, Angela Merkel phone taps, as well as a myriad of other international conflicts.

Bitcoin's future is bright.

edit:  the device makers will have the incentive to form their own mining pools to collect BTC which i am sure they'll do.  this will further decentralize mining.

The Great Firewall of China, that presumed absolute Communist State grand daddy of them all, is merely an http:// blocker.  no more.

i hope the 1MB cap core devs realize that their new customer, the NASDAQ, will require ongoing cheap tx fees:

Under a colored coin system, small fractions of bitcoin can be designated to represent much larger values. Users need to purchase some amount of bitcoins in order to move them, but bitcoins are divisible to eight decimal places. With the bitcoin exchange rate around $230 today, an issuer could purchase a thousandth of one for less than 25 cents and subdivide it into smaller pieces for distribution to investors.

http://www.americanbanker.com/news/bank-technology/nasdaq-signals-confidence-in-bitcoin-not-just-the-blockchain-1074405-1.html

yeah, i thought of that too.

i think it's going to be a huge win.

skimmed the current site but couldn't find any specifics on initial distribution or supply.

the disingenuous thing about that policy is that it is an attempt not to force consumers to buy things in the real economy, but to force them to speculate in assets like stocks and bonds so that the current holders (the financial elite) can dump to the masses at a higher top.

$DJI gone negative.  would be really interesting if it turns out to be a headfake over the top (to a new high).

the Dow Theory non conf is strong.

that's ok.  it's the concept that counts.  along with the built in marketing to the masses.

banks starting to consume each other.  retail clients are sure to get hit soon:

“HSBC charges banks for deposits they hold with us in currencies where negative interest rates apply,” the UK-based lender said in a statement on Tuesday. “Banks affected have been notified and we continue to monitor the situation.”
The unusual steps come after the European Central Bank became the first big central bank to announce a negative deposit rate — in effect a penalty on banks parking their surplus cash — last year.

http://www.ft.com/cms/s/0/6ad3f99a-fe16-11e4-8efb-00144feabdc0.html#axzz3aaO1u93p

but why would you want to deny them their rightful participation in a new form of money they might actually believe in?  afaict, they aren't trying to change anything about Bitcoin; they just want in.  that can be beneficial for the space.

this is actually inspiring that all these divergent opinions still have the maturity and willingness to break bread together in the same room. i'm sure all their differing views were aired and hopefully some positive consensus will arise: