So again, can the 21's plan for mining compete with large scale mining? Small scale mining can be and is continually tested, what they bring to the table is a new chip. So can the new chip revive small scale mining?
People are focusing too much on the cost that these chips will produce bitcoins for. That's not the play I'm imagining. The play I'm imagining is to
create some hype and then get a bunch of phones out across the world with these chips in them!Once the phones are out there, they'll start generating bitcoins. It doesn't matter at that point whether they do so cost-effectively or not (we're only talking a few bucks a year anyways). As long as 75% (or whatever %) of the coins flow back to 21 Inc and partners, the cost of the electricity used to produce those coins doesn't matter very much
to their revenue .
From the perspective of the end-user, once they've bought the phone, they are going to use it for a few years, and thus mine bitcoins for 21 Inc. and partners. They're not going to throw out a $100+ phone because it consumes a few extra dollars per year in electricity.
I obviously don't agree to that, it has to be economically viable to exist. Are you suggesting a big con?