Bitcoin mining center have successfully emailed the post. It’s great news for bitcoin miners, the people responsible for creating new bitcoins. Mining infrastructure is the backbone of bitcoin. Anyone who contributes computing power to help process transactions on the network is rewarded with the chance to “mine” bitcoin.
In plain English, in return for helping keep the network up and running, they have the chance of being given a newly created piece of the digital currency. This payout makes the entire process — with the right equipment — incredibly lucrative. It has helped spawned a huge and surreal industry. You can mine at home, and many people do. But companies dedicated to mining have also sprung up, some worth tens of millions of dollars.
These companies build huge data centres, or mines, that consume vast amounts of power and perform insane computations on the hunt for digital gold. These photos are from Genesis Mining, a cloud mining company. It lets customers mine using its “cloud,” without having to buy specialised hardware. It’s technically possible to mine on just about any computer, but it’s not profitable to do so unless you have the right kit.
The company had early mines in Bosnia and China, and most of its operations are now based in Iceland. The country boasts three very important qualities for mining: cheap energy, good internet connections, and a cold climate. Even so, Genesis’ electricity consumption is very significant. But there are a lot of other costs, including hardware, production costs and staffing. Streng says cloud mining “has a major trust issue. Customers never actually see or own the mining hardware themselves — putting them at risk of fraud.
Ponzi schemes can pop up, with perpetrators using later customers’ money to pay earlier customers while keeping most for themselves. Here’s another shot of Genesis’ mining operations. More than 10,000 mining GPUs are in this one room. So what are the conditions like in the mine itself?