I’m late to the Bitcoin party so this is probably already out of my reach, but this is fascinating stuff from a geek point of view.
With the price of bitcoins skyrocketing, mining is suddenly big business, so enticingly big that one wannabe miner was willing to pay a 1,333 percent premium to get his or her foot in the door of this wildly lucrative bitcoin bonanza. Ladies and gentlemen, welcome to the bitcoin gold rush.The craziest part? This wasn’t an auction for a physical, working, ready-to-ship bitcoin mining machine from Avalon, which claims to be the first to develop turnkey, bitcoin-specific mining computers for sale. For $20,600 bidding started at a reasonable $500, the lucky winner only received a place in line and the promise that an actual pre-ordered miner will be delivered sometime next month. If that sounds ridiculous, well, it’s because it quite possibly is.
But clearly there are bitcoin-savvy folks betting that paying 13 times the price of a machine will actually pay off. How did we arrive at this maniacal juncture? Was it greed? Stupidity? Or simple mathematics? For the full story, we’ll have to start from the top.