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

[meono]

I posted in the other thread on this but I think anyone who thinks that this is a good idea needs to consider this...

Why would anyone want to run a $400 miner that helps them deal with bitcoin

if instead the 21 company just deployed their own server on the Internet, in a colo that had cheap bandwidth and 24/7 cheap power, and you could connect to that with a nice web interface to do your mining and whatever else they want to do on this piece of hardware you buy

Then you wouldn't have to deal with:

- upgrading the thing with new OSes and software
- fixing it when it had problems
- the slow Rasperberry PI2 itself

and it would be cheaper because you would pay by the month as a service instead of paying $400 for something that will be obsolete next month.

The whole thing makes absolutely no sense at all. It is simply unbelievable that this is their business idea.

Why not sell a Raspberry PI that runs a web server with a daughter board to speed up web serving for $400? How about a PI that runs its own email server? Makes just as much sense as this does.

You see..... this is why we call the current trend is bitcoin bubble. Its not about the btc price, its the startups like these got millions in VC....

Anyone here old enough to remember the dotcom boom?
Dejavu again. These VC + tons of sitting cash = throw at any trend that potentially returns 100x times..... No need to see if ideas make any fucking sense.

[BitUsher]

It appears there may indeed be a useful case for this device...

How else do you enable true micropayment possibilities than by allowing ubiquitous access to mining?

These folks are very, very clever.

So you are suggesting their definition of microtransactions is less than 10 cents which is prohibitively expensive to send right now with fees being 2 pennies?
What does this hardware have to do with sending dust, why not just use one of many services like changetip to send microtransactions or is this going to be a decentralized caching layer for micro-transactions that doesn't use an off the chain solution(like the lightning network)?

Yes, I am honestly unsure about the specifics but I'm confident your second statement is close to what they're doing.

See my reply above and yes indeed the microtransactions they refer to will be less than 10 cents. We're likely talking satoshis here.

There are reasons why that is not possible and that would be a hack anyway.

By participating hashing power to 21inc mining pool (as negligible as it could be) they will aggregate all of their embedded chips and Bitcoin computer devices micropayments and include them into blocks they mine.

If that is the case , that is a creative solution that also allows bitcoin to scale more (If and only if the process is decentralized and acting like a caching layer). They are really horrible about explaining this simple idea in their marketing I do say.

Case use ... You are a songwriter and manage to convince 5% of the bitcoin users to buy your song for 1 penny in btc each allowing you to earn 2k in profit tax and itunes fee free . Rinse and repeat and earn a reasonable income, and probably much more by releasing through itunes only.

Hmm.. now this sounds exciting as any centralized offchain solution exposes one to the risk of taxes for earned income and counterparty risk. What is also interesting is this opens up a huge market demand for bitcoin as people will be excited to use itunes alternatives where music costs 1 penny a song instead of 99 pennies a song.

We certainly are reading between the lines however and may be delusionally optimistic.

[meono]

It appears there may indeed be a useful case for this device...

How else do you enable true micropayment possibilities than by allowing ubiquitous access to mining?

These folks are very, very clever.

So you are suggesting their definition of microtransactions is less than 10 cents which is prohibitively expensive to send right now with fees being 2 pennies?
What does this hardware have to do with sending dust, why not just use one of many services like changetip to send microtransactions or is this going to be a decentralized caching layer for micro-transactions that doesn't use an off the chain solution(like the lightning network)?

Yes, I am honestly unsure about the specifics but I'm confident your second statement is close to what they're doing.

See my reply above and yes indeed the microtransactions they refer to will be less than 10 cents. We're likely talking satoshis here.

There are reasons why that is not possible and that would be a hack anyway.

By participating hashing power to 21inc mining pool (as negligible as it could be) they will aggregate all of their embedded chips and Bitcoin computer devices micropayments and include them into blocks they mine.

If that is the case , that is a creative solution that also allows bitcoin to scale more (If and only if the process is decentralized and acting like a caching layer). They are really horrible about explaining this simple idea in their marketing I do say.

Case use ... You are a songwriter and manage to convince 5% of the bitcoin users to buy your song for 1 penny in btc each allowing you to earn 2k in profit tax and itunes fee free . Rinse and repeat and earn a reasonable income, and probably much more by releasing through itunes only.

Hmm.. now this sounds exciting as any centralized offchain solution exposes one to the risk of taxes for earned income and counterparty risk. What is also interesting is this opens up a huge market demand for bitcoin as people will be excited to use itunes alternatives where music costs 1 penny a song instead of 99 pennies a song.

We certainly are reading between the lines however and may be delusionally optimistic.

Please take the retard's post with a grain of salt (brg44)

If what he described is true, their $400 is doom to fail due to 2 things:

+Operating cost of having "mining device". Which essentially can be greater than tx cost for dust tx

+Spam attack on the network. I can fill up every single 21inc's block with just $400 up front cost?

This is a illusion to fool idiots into thinking "micropayments" are free.