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Inside the walls of a professional Bitcoin mining facility in Iceland

By Shawn Knight · 11 replies
Dec 23, 2013
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  1. Bitcoin mining was once feasible at home using GPU power but that’s no longer true. As the price of the virtual currency skyrocketed over the course of 2013, entrepreneurs like 31-year-old Emmanuel Abiodun began investing serious money in Bitcoin-specific mining...

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  2. VitalyT

    VitalyT Russ-Puss Posts: 4,068   +2,479

    Just how sick is all this...I'm ready to puke...

    Some always gets rich on the back of every tulip mania, but most get burned, as always.
  3. Just keep talking about it...

    Just keep talking about it...

    Just keep talking about it...

    Just keep talking about it...

    Just keep talking about it...

    Just keep talking about it...
  4. davislane1

    davislane1 TS Grand Inquisitor Posts: 5,231   +4,372

    No opportunity in the world exists where everyone comes out a winner. Nothing wrong with someone enjoying success in an endeavor, however risky it might be. If someone couldn't afford to get burned exploring an opportunity, they shouldn't have explored it. What should make one queasy is that after centuries of documented asset bubbles, most people still can't spot them. The accumulation of wealth should not be sickening; ignorance of fundamental history should be.

    As for Bitcoin's meteoric rise... Those types of gains are not sustainable in any asset class. If Bitcoin is to stick around for the long haul its crypto currency/fiat currency exchange value will have to stabilize.
  5. wastedkill

    wastedkill TS Evangelist Posts: 1,423   +350

    If they did litecoin I could see this being a big hit but seeing as bitcoin will hit the max coins in 100days or so it seems like a massive waste of money... BTCGuild is the biggest earner they earn $250mill a year from the current hashrate of the pool and with those fees they earn roughly $50mill a year JUST from the fees alone.... $250mill earned a year with what only 3-7.5% going back to BTCGuilds owners is a massive amount...

    Wish I made BTCGuild lol those are the real winners here not the miners.
  6. thelatestmodel

    thelatestmodel TS Addict Posts: 142   +60

    I looked into this just now - it's apparently a terrible deal.

    You can purchase "mining contracts" from the company, I.e. semi-renting their hardware to do your mining for you. The trouble is, with the difficulty of mining going up by approximately 50% each month, the contract you sign up for gets weaker and weaker as time goes by.

    Therefore, as one reviewer pointed out, you can expect to earn 1.8 Bitcoins per year on their Gold plan, which costs $4000 per year. $4000 will currently buy you 6.15 Bitcoins. Not a good deal unless the price of Bitcoin continues to rise dramatically.
    wastedkill likes this.
  7. wastedkill

    wastedkill TS Evangelist Posts: 1,423   +350

    Hence why it would be a better investment going into litecoin mining... I would think they would earn a lot of money from renting their hardware for mining and they keep the what 10%, you would easily earn your money back.
  8. cliffordcooley

    cliffordcooley TS Guardian Fighter Posts: 10,625   +4,471

    It is a good deal, a good deal for the host. They won't allow you to get rich on their dime, they will mislead you in thinking you will. And since the nature of Bitcoin value is not stable, good luck making a lawsuit against them. Especially when Bitcoin is not fully established as a legitimate currency or service.
  9. What's the "real" value for the mining? by chances or exchange by something? still don't get it??:(
  10. wastedkill

    wastedkill TS Evangelist Posts: 1,423   +350

    Is it just me or does this guy look like a hipster? Also to the guest the real value well its pretty much a ponzy scheme in a way as if people didnt dump money into it their wouldnt be money to get out of it.

    Its mainly exchanging it buying low and selling high or even mining tons and hoping for a profit.
  11. What he is doing with "renting" is actually money laundering..
  12. leeblevy

    leeblevy TS Rookie

    Great post ! please keep talking about it !...
    Actually I also need some help !
    I'm running an investigation for B-School project. It's about data center mining for Bitcoin. I've read a lot, many articles, I've been keeping up to date. The ONLY thing I've got left, is the appropiate size of a 5 megawatt (an aprox. estimation would work!) data center mining for bitcoin ... Is the only thing I cant answer because I dont have a Data Center near the place I live ... thank you very much !

    #FreeCryptoWorld !

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