Bitcoin and other cryptocurrencies

Not sure how many of you have been keeping an eye on cryptocurrencies, but there are a few things I see that could make it something of interest to the FSAE community:

1. FSAE teams always need more money. Of course this is #1 on the list! While Bitcoin mining has been pushed far out of profitability by specialized hardware, a good Radeon graphics card will earn close to $10-20/day at current rates on a high-yield Scrypt currency like Dogecoin or Middlecoin. CPU mining is sometimes still profitable with these as well, depending on the CPU (AMD FX processors do quite well in fact). FSAE members are known to be always in search of more income, and tend to have not only above average computers (especially when it comes to graphics cards), but also the initiative and tech savvy to spend an hour or two on google figuring out how to get mining working. And as a nice bonus, mining gives a method of obtaining cryptocurrencies without any cash investment outside of electricity (as a reference, an older high-end Radeon graphics card will earn $10 a day while consuming $0.30 in electricity).

2. Bitcoin and its derivatives are the ultimate international currency. While some get nervous about their lack of backing by a government, their lack of government control makes it perfect for international commerce, especially in countries where endless importation and purchasing bureaucracy make it nearly impossible to obtain the quality parts and materials needed to make a safe, competitive car.

3. Steady growth in the last year shows great promise for widespread usage. It has been said that Bitcoin is not so much a currency as it is a technological paradigm shift that completely changes how property can be exchanged. That's a tough bit to take in all at once, but IMHO it is something that is just starting to gain the appreciation it deserves. While the media has given a lot of attention to peaks and crashes, the fact remains that its instability early on is really more of a growing pain than anything else. Despite a few over-hyped crashes, Bitcoin has gone from a value of about $17 a year ago to hovering near $900 today. Its instability is purely a side effect of its growth. Overstock.com has recently began to accept Bitcoin, and the current push is to gain acceptance on Amazon (which IMO could be a tremendous game changer).


In short, teams can earn money by using their existing computer power for mining Scrypt currencies such as Litecoin, Dogecoin, or Middlecoin. This can be easily used internationally in a very rapidly growing market. I personally envision that a day will soon come where a lot of race car parts and materials can be bought using Bitcoin (or any other crypto of your choice), regardless of where you are in the world.