Inside a Chinese Bitcoin Mine

More power to the guy in Washington State! That is cool!

Bitcoin mining is like a computer solving an algorithmic problem that has a limited number of solutions. As more and more solutions are found the remaining number of solutions get harder and harder to find. Also, you are competing against other bitcoin miners whose computers are attempting to solve the same algorithm. So solutions to the algorithms are precious numbers that are rewarded to those whose solve the algorithm (known as a block) with bitcoins.

Clear as mud, right?

Well no because youre leaving the most important thing out...

or mine a diferent coin and trade it on an exchange for satoshi a increment of bitcoin.
like a stock market for bitcoin.



Last Edited by Dogfood™ on 08/12/2014 02:19 PM

Every single one of you has the chance to get out of the Rat Race forever.

Buy and hoard as many bitcoins as you possibly humanly can..... the price is going to be at 50K+ Per Coin next year.

Don't believe me? I don't care. But you don't want to miss this chance.

Sorry, I forgot about the average sixth grade education rule:

[link to en.wikipedia.org]

Aside from the impracticality of several thousand mobos
submerged in mineral oil, you still have to
remove the heat. So, major fail.

[link to startbitcoin.com]

"The way that they are entered into the market is a process called “Mining”. Basically, computers solve mathematical algorithms to earn the Bitcoins. They are very complex and take a lot of computing power to solve. The more computers trying to solve the equations, the harder the equations become to solve, the less you get for mining."

So who is doling out the Bitcoins?


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fan is simpler

ahh thats harsh lol

i ment. what algorythm are they working on...

its easy to say everyone is building something. best builder wins. but i wonder what they are building so to speak.

60K.... so that must be what my wife and kids are up to while I am out of town... you should see our electric bill -- but when I do get home for a weeken, the house is always uncomfortably warm.

yea exactly. why arnt they getting our question? lol

we all understand they are calculating something major. but what??? and yes maybe we dont understand it. thats why we want to know

fans would be cheaper, which is what they are already using

Each computer runs the bitcoind server software. They are all constantly verifying the transaction log validating bitcoin transactions and also solving a puzzle and the first one to solve the puzzle is awarded bitcoins in a predefined amount based on the software each server runs. Basically they all agree to generate the coins out of thin air but only award them to the one server that solves the puzzle.

If any server breaks the rules and alters their software so as to cheats and making their own rules the other servers will reject that transaction and determine that that person or server does not really own that bitcoin.

DO they use ASICS? Do they make thier own ASICS or do they purchase ones already on the market?

wait, they are not real coins????

[link to money.cnn.com]

Inside Hong Kong's biggest Bitcoin mine.......

Very interesting.. But i would seriously consider watercooling blocks for each asic card. Think about it in the end you could have one giant water reservoir and a giant old pump,and old car radiators for the cooling of the reserviour. The cooling efficiency would be greatly increased, the electricity consuming fans would no-longer be needed, AND after all that they could overclock the ASICS to increase their Giga Hashes.

bitcoin is as real a currency as any. but with much more potential than FIAT currency.
You do realize that paper currency has no intrinsic value and its purely backed up by gold that is supposed to exist in a central bank vault?

Digital coins each stamped with a unique digital id to they can not be copied, counterfited or double spent. They are pseudo anonymouns, not owned by any one country and can be transmitted over the internet within minutes and verified.

neither is the balance on screen at ATM machine REAL physical coins or physical anything. its not a physical object until you use your bank account to pay for a product, at which point you have transferred numbers in a computer into a physical thing like a piece of jewelry.

Oh and BTW try going to your bank and asking for all your current account money in the form of gold. They wont do it.

Last Edited by Agent Smith 2014 on 08/12/2014 02:57 PM

That's fine and all, but they want to know who's creating the bitcoin software that people run to get bitcoins?

From what I understand, bitcoin uses cryptography, which has been pioneered by the NSA and it's previous incarnations. Think the Enigma machine, which altered the course of WWII.

So you are using NSA software when using bitcoin. Make no mistake about it, NSA does have a key to backdoor bitcoin access. Sheep be sheeping.

duh. pretty standard knowledge

I just always heard of bitcoin and never looked into it
I thought they were real coins and when I seen 'mine' in the title I thought for sure it was a real solid coin haha

APC and Liebert now make rack systems with the air conditioner in the rack. It's still air cooled but due to the proximity to the heat load they are very efficient.


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No they are virtual currency coded in internet + secured, this days you can have this wallet on a similar card like a plastic bank card with Qr-code to pay or receive and your wallet number. You have own code like in bank card... people decide on market the price of virtual currency. This days there is service's that can use to pay with your crypto. This service allows you to choose and pay straight in any currency you want.. it exchanges your cryptos to with a current market price to Euro or dollar for example.

omg what a waste of money

The software is opensource run by no one and everyone that wants to participate. Feel free to look for any back doors from the NSA. Thousands of Mathematicians and scientists all around the world along with hackers have been verify the software is pretty much bullet proof. If anyone found a way to break it that could easily collapse the bitcoin market or make a lot of money by hiding it.

by the way there is some country want to move allready to a digital money system and also I know that in England goverment are doing Crypto for England (Hullcoin), wich people gonna use as regular digital currency in future.