Life Inside a Secret Chinese Bitcoin Mine

Published on Feb 6, 2015 by Motherboard

In October of last year Motherboard gained access to a massive, secretive Bitcoin mine housed within a repurposed factory in the Liaoning Province in rural northeast China. This is the infrastructure that keeps the digital currency’s decentralized network up and running, and its operators are profiting big time. The mine we visited is just one of six sites owned by a secretive group of four people, part of a colossal mining operation that, as of our visit, cumulatively generated 4,050 bitcoins a month, equivalent to a monthly gross of $1.5 million.
Read more on Motherboard – http://bit.ly/Chinese-Bitcoin-Mine

The magic of mining

Published on Jan 10th 2015 by The Economist

Deep down in the bitcoin mine

A HUGE aircraft hangar in Boden, in northern Sweden, big enough to hold a dozen helicopters, is now packed with computers—45,000 of them, each with a whirring fan to stop it overheating. The machines (pictured) work ceaselessly, trying to solve fiendishly difficult mathematical puzzles. The solutions are, in themselves, unimportant. Yet by solving the puzzles, the computers earn their owners a reward in bitcoin, a digital “crypto-currency”.

The machines in Boden are in competition with hundreds of thousands more worldwide. The first to solve a puzzle earns 25 bitcoins, currently worth $6,900. Since bitcoin’s invention in 2008 by a mysterious figure calling himself Satoshi Nakamoto, people have increasingly traded it for real money, albeit at a wildly varying price (see chart). Although there are only $3.8 billion-worth of them in circulation—about twice the value of Paraguayan guaraníes in use—bitcoins have three useful qualities in a currency: they are hard to earn, limited in supply and easy to verify.

Read more: http://www.economist.com/news/business/21638124-minting-digital-currency-has-become-big-ruthlessly-competitive-business-magic?fsrc=scn/tw_ec/the_magic_of_mining

Inside one of the world’s largest bitcoin mines

A week after I visited the last bitcoin mine in northeast China, I was able to arrange a trip to a larger, even more secretive operation. These exclusive photos provide a glimpse inside one of China’s largest bitcoin mines.

Arriving at the site, I did not expect it to be so busy. There were men in hard hats and work crews mulling about, and vehicles coming and going. There were cement trucks and lorries hauling steal beams, along with massive spools of industrial sized wiring. This wasn’t a repurposed factory like the previous mine I visited… this was an entire facility being constructed just for bitcoin mining!

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Published by Bitsmith on Wed, Aug 27, 2014