The Free Market’s Bitcoin Technological Arm’s Race

Custom chips from Butterfly Labs, a Kansas City company, are designed to plug into a USB of a computer and augment the efforts to mine Bitcoin.  These new lines of products from Butterfly labs will range in price from $150-$30,000. Thousands of customers have placed advanced orders for the technology. Butterfly is not the only company working on a such technology, and several companies are working on application-specific integrated circuits, or ASICs. This is an excellent example of the free-market regulating itself. These advents come into being just as the BTC mining production was halved due to the existence of 10.5 million Bitcoins as a product of continued mining.

ASICs are very expensive, usually starting in the low hundreds of thousands of dollars, despite Butterfly’s low-cost options. They are etched from blocks of silicon with microscopic precision. If the company’s products do make it onto the market, there will be an arm’s race for ever speedier versions.

And that is the free market. Instead of new rules whenever the inevitable is scheduled to happen, the free market allows that which must happen, happen, and then makes the necessary adjustments to continue functioning.

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