Industry AgendaIT Software and ServicesEmerging Technologies These photos show you inside an Icelandic bitcoin mine The Internet of Things will power the Fourth Industrial Revolution.Here's how Globalization and soccer in China, the rise of RegTech and other stories you may have missed this week 10 astounding facts to help you understand China today Bitcoin is surging right now.The digital currency is hitting highs not seen since February 2014, jumping by well over 30% in a month.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.Here's a look inside one: 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.Many people do mine themselves, often joining large pools to improve their odds.But Genesis' model is another option.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.Climate is incredibly important.

Mining hardware generates a tremendous amount of heat and uses huge amounts of power.If you can save on cooling costs because of the natural temperature, it could mean the difference between losing money and making a profit.Even so, Genesis' electricity consumption is very significant.CEO Marco Streng says energy companies "offer us helicopter rides whenever we arrive" and speculates that the company may be one of the biggest single users of power in the country.Assuming you're getting a good deal on electricity — and ignoring all other costs — Streng says one bitcoin costs about $200 to mine.One bitcoin is currently worth $690.But there are a lot of other costs, including hardware, production costs and staffing."I think it is fair to assume that [mining] will probably balance out in the future at around plus or minus 20% compared to buying," Streng says.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."They don’t ever even own their own mining facilities.They just take pictures from other companies, Photoshop them, then pretend they are theirs."Genesis doesn't just mine bitcoin.It has also started mining Ethereum — another type of digital currency that can support decentralised applications and "smart contracts" that execute themselves automatically.bitcoin yellow jacketThe price of Ethereum is now $16.70, while Streng says electricity costs to mine it are $3.85.ethereum alert appHere's another shot of Genesis' mining operations.bitcoin irrelevantMore than 10,000 mining GPUs are in this one room.bitcoin widget windows

So what are the conditions like in the mine itself?Speaking in a promotional video, chief technical officer Stefan Schindler is candid: "Working inside a bitcoin mine is absolutely terrible.""You're constantly surrounded by machines that are completely shouting at you all the time," he says."It's as if you were listening to jets starting and landing without stopping."sebuh bitcoinHeat is another factor — parts of the facility reach 40 to 50 degrees Celsius (104 to 122 Fahrenheit).litecoin software downloadRead more: The price of bitcoin is skyrocketing ahead of the 'halvening' Here's one of the most interesting predictions for the future of bitcoin Subscribe for updatesbitcoin transactions sqlEdit ArticleHow to Mine Bitcoins So you've heard of Bitcoin, and you're ready to get your hands on some digital wealth.bitcoin e iva

You can buy and trade for bitcoins, or you can "mine" for them.Mining for bitcoins is actually the process of verifying other bitcoin transactions, which users are rewarded for.This is the central mechanic behind the bitcoin economy, and mining is used to keep transactions secure and reliable.This guide will explain how to mine bitcoins and potentially earn a fair amount of money.bitcoin warren buffett1 Purchase custom mining hardware.When Bitcoin first started, it was possible to mine using only your desktop's CPU and GPU.While this is still possible, the returns make running this method impractical.You will be spending far more on electricity than you will earn mining coins.Instead, custom hardware allows for much better processing for about the same power draw.Custom hardware comes in the form of cards that are inserted into the computer much the same way that a graphics card would be.Popular Bitcoin-mining hardware brands include Butterfly Labs, Bitcoin Ultra, CoinTerra, and more.

A dedicated Bitcoin mining machine can cost anywhere from a few hundred dollars to tens of thousands depending on the number of operations it can complete per second.2 Obtain a bitcoin wallet.Bitcoins are stored in digital wallets that are encrypted to protect your money.These wallets can be either locally or online.While online services that host your wallet won't be able to access it, they are considered less secure as your money could potentially be lost if something catastrophic happens on their end.Most established bitcoin users recommend using a local wallet for security reasons.Local wallets typically require verifying the entire blockchain, which is the history of all bitcoin transactions.Hosting a blockchain is what helps keep Bitcoin running and secure.Syncing this blockchain for the first time can take a day or more.Popular local wallets include BitcoinQT, Armory, and Multibit.Multibit does not require downloading the entire blockchain.You can also get wallet apps for your mobile device.

These do not require downloading the entire blockchain.Popular apps include: Blockchain and CoinJar.If you lose your wallet, you lose your money![1]3 Secure your wallet.4 Decide between joining a pool or going alone.When it comes time to start mining coins, you have two main options: join in with an established pool or attempt to mine on your own.A pool allows you to share resources and split the rewards, which can lead to quicker returns.Mining alone can be difficult as getting new bitcoins is highly competitive, but you get to keep everything you mine.[2]Without joining a pool, you may go a year or more without earning any bitcoins, since the coin is awarded to the pool that discovers it.[3]Most pools charge a small fee (around 2%) of your earnings.When joining a pool, you will need to create a "worker".This is a subaccount which is used to track your contributions to the pool.You can have multiple workers at once.Each pool will have instructions on creating workers.5 Download a mining program.

Mining programs are almost all open source and available for free.There are different mining programs available depending on the type of hardware you are running.Mining programs run in the command line, and may need a batch file in order to start correctly, especially if you are connecting to a pool.The two most popular mining programs are CGminer and BFGminer.EasyMiner runs with a graphical interface as opposed to a command line.See your pool's help section for specific details on connecting to the pool with your mining program.If you are mining solo, be sure to connect your mining program to your personal wallet, so that anything you earn gets deposited automatically.If you are mining as part of a pool, you will connect your wallet to your user account with the pool.Coins will be transferred as they are earned.6 Run your miner.7 Keep an eye on temperatures.8 Check your profitability.After you've mined for a little bit, check your figures to make sure its worth it.How much did you make over the last few days?