Bitcoin-Mining Chips, Gear, Computing Groups: Competition Heats Up - Businessweek

Excerpt from an extensive Bitcoin cover story

"Even some Bitcoin entrepreneurs think mining has become a sucker’s game. Fred Ehrsam is a former Goldman Sachs (GS) trader and co-founder of Coinbase, a Bitcoin startup making wallet software that allows people to trade and store Bitcoins, and which recently raised $25 million in venture capital. Ehrsam is committed to Bitcoin but pessimistic about underfunded prospectors making any money. “This is very much a fad that is going to die soon, if it’s not even dead already,” he says. But that’s not the same as saying individual mining will end. He suggests that the next generation of miners might run their computers for ideological purposes—to support the currency and be a disruptive force in global finance—even if doing so has become unprofitable."

Bitcoin-Mining Chips, Gear, Computing Groups: Competition Heats Up - Businessweek