> Devices now need state, pushing up the base price. You can buy pretty decent (16Mhz, 2K EEPROM, 8K flash) microcontrollers for less than twenty cents (my num

> Devices now need state, pushing up the base price. You can buy pretty decent (16Mhz, 2K EEPROM, 8K flash) microcontrollers for less than twenty cents (my numbers are from 7 years ago, things are probably cheaper, faster and bigger now). A few bytes of stable storage -- whatever you need to safely increment a counter and not lose state to power glitches -- are not going to add significantly to the cost of a hardware token.