In the last few days there have been many articles criticizing the new 21 inc. device as "an inefficient miner". Lots of comments like that on /r/bitcoin too. If you think the same, you have completely missed the point of 21 inc. device. It is NOT a bitcoin miner. Imagine it does not generate bitcoins at all. Could you write an article criticizing the device if it did not generate ANY bitcoins? You seem to forget (or not realize) that this device's main function is making smart contracts on the Bitcoin blockchain. To use the Bitcoin blockchain the device has to pay transaction (miner) fees, therefore, it needs to have a tiny amount of bitcoins for that. There are several ways to go about doing that: The device owner could buy a small amount of bitcoins and send them to the device. This would turn off most of the people, because buying bitcoins is a huge hassle, it takes several days, requires the owner to scan and upload various documents, etc. This would not work, because people are too lazy. The device could already have some bitcoins on it when shipped to the buyer. This would make 21 inc. a money transmitter and would open up a regulatory nightmare where 21. inc would have to spend all their 120 million on lawyers and application fees. This would not work, because of AML / KYC / other regulations. The device could mine bitcoins itself. This is exactly what 21 inc. device does. Don't look at the dollar value of those bitcoins mined, because it's irrelevant. 10 cent per day may be minuscule in monetary value, but it is enough to pay transaction (miner) fees for 5 smart contracts per day. This is the only purpose of the mining part of the device - to create bitcoins to use for smart contracts' transaction (miner) fees. submitted by shadowrun456 [link] [84 comments] > lees heel artikel