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Chip designers see dollar signs in Bitcoin miners

Chip designers see dollar signs in Bitcoin miners

(Reuters) – Tucked away in an air conditioned data center in Silicon Valley is a hodgepodge of black boxes, circuit boards and cooling fans owned by 27-year-old Aaron Jackson-Wilde, a modern-day prospector looking for Bitcoins.

Since discovering the digital currency a few months ago, Jackson-Wilde has paid about $2,000 for his “rigs,” which are powered by specialized computer chips. They are designed to help operate and maintain the Bitcoin network – and, in return, generate a small reward in a process known as “Bitcoin mining.”

A form of electronic money independent of traditional banking, Bitcoins started circulating in 2009 and have since become the most prominent of several fledgling digital currencies.

While they quickly gained a reputation for facilitating drug deals and money laundering, Bitcoins have of late garnered attention from investors, such as venture capital firm Andreessen Horowitz. The volume of transactions using Bitcoins today remains miniscule, but enthusiasts believe the peer-to-peer currency will play a major role in e-commerce and could eventually become as ubiquitous as email.

Bitcoin mining is based on a unique feature of the digital currency. Unlike traditional currencies, where a central bank decides how much money to print based on goals like controlling inflation, no central authority governs the supply of Bitcoins.

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This entry was posted on November 3, 2013 by and tagged .

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bitcoinvancouver2013@gmail.com

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