Quote from: jmw74 on May 20, 2015, 09:23:54 PM

Quote from: cypherdoc on May 20, 2015, 04:41:49 PM

the only financial plan i've heard of is the 25/75% split btwn the consumer and 21, so the consumer is going to get spending coin. and that would be business savvy for the companies b/c that allows consumers to purchase other services and features. yes, the mining and hardware wallet will be on autopilot and already setup which makes it brain dead easy for even guys like you to use so you won't feel so bad for having not bought @ $13.

I can't quite tell but I think you're serious?

The consumer is going to get 25% of jack shit, and a bigger electricity bill. You can't possibly think this is a business model.

These ASICs are going to be nearly obsolete by the time anyone plugs them into a socket. They are not going to mine anything of value, certainly not enough to pay for any real world resources. A few satoshis is below the dust limit and unspendable.

You need to quantify the BTC earned and the cost of the hardware produced. If the former is larger than the latter, and if the electricity is "free" due to the 100% mining efficiency of the heat appliance (because the heat is consumed), then it is a viable economics in theory (assuming the company can pull off the opaque, auto-pilot integration of the mining into the heater appliance). Note smooth's upthread point that cutting edge silicon is not necessary. One could go back to older (e.g. 64nm or greater) lithography to attain the necessary heat and low-cost, and for as long as the BTC generated exceeds the cost of the device and support network, then the business model is in theory viable.

Since you appear to be referring to the smartphone device which does not replace consumed heat, then the assumption is the users don't count variability in their electricity bill. The designers will presumably keep the targeted electricity below the normal variability on the typical electric bill (or below the differences that consumers pay attention to), larger battery, larger charger, and thus the user may not notice.

Remember the target market are dumb (ignorant, naive), non-technical users in the developing world.

Any one who claims this target market is going to care that their device has been captured for mining without their active knowledge and participation, has not spent enough time with ladies in the Philippines and their interaction with their mobile phones.

Larry Summers is likely laughing how we want to bring the unbanked into Bitcoin and they will fulfill that goal with captured devices that mine for the cartels which these dumb (ignorant, naive) users operate and supply with electricity. Be careful what you wish for, you might just get it.

Quote from: jmw74 on May 20, 2015, 09:23:54 PM

Even if that were somehow overcome, do you really think that all the power outlets that people can use today for free, will still be free, once it becomes clear freeloaders will be making real profits by stealing power? Of course not. They're only free today because no one is trying to take advantage of them.

This is pretty much an accurate statement, but irrelevant to the business model. It is an accurate refutation of cypherdoc's Freudian slip.

Quote from: jmw74 on May 20, 2015, 09:23:54 PM

21's plan, as stated, is pure bullshit. The only question is whether they know it or not.

No you haven't thought it out well. Hope I have helped you above to sort out your mistakes.