New Bitcoin Mining Device Ships
April has been a wild month for Bitcoin. For those who follow this new virtual currency, you may have noticed how the value has been doing wild swings, from around $53 to over $200, back in the hundred of dollars within just a few days. Needless to say, those who invested in getting some Bitcoins early and managed to sell at the right time are making quite a lot of money. But Bitcoin is also a boon for inventors and innovators.
What makes Bitcoin so great for many is how the currency itself works. Unlike traditional currencies, the increase in the amount of coins out there is based on hashing out algorithmic functions. As time goes by, the difficulty in these hashing functions goes up, which means there are less coins being introduced, until all new coin intakes stop all together sometimes in a few years. Until then however, there are people that have made it their mission to manufacture the most efficient hardware to create these Bitcoins. Right now, the consensus is that ASIC machines, those created with high powered GPUs, are the best bet to mine Bitcoins.
The technology is such that a properly built ASIC device will pay for itself in Bitcoins. That means making the device, then leaving it running, eating electrical power, it will manage to hash enough coins to pay for the cost of running it, depending on the current value of Bitcoin. So if you can mass produce them, and run multiple in tandem, then you can create quite a wealth. One particularly awaited unit is the Jalapeno device from Butterfly Labs. The units have been delayed and many were starting to doubt that they would ever ship. But as the unboxing video above shows, they are very real and now starting to ship to pre-order customers. If you are interested in the inner workings of mining Bitcoins, check the video out.