$2 million+ bitcoin mining facility launched in Iceland

Sonny

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Quote from: kireinaha on December 21, 2013, 06:36:00 PM

They'll barely get a ROI given that the difficulty will soon rise again. Would have been better to just buy $2 million of coins from an investor.

Well, at least with the computers (GPU mining, I assume), he can switch to mine scrypt-based coins and sell it for bitcoin. Cheesy

BitChrisUK

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Quote from: kireinaha on December 21, 2013, 06:36:00 PM

They'll barely get a ROI given that the difficulty will soon rise again. Would have been better to just buy $2 million of coins from an investor.

Your comment would suggest that buying mining power is in no ways profitable if a extremely intelligent and rich man buying the latest state of the art equipment which uses cheap power and requires low heating costs can not accomplish this?

ThorinIceland

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This icelandic company is also hosting a few clusters: advania.com/datacenters

smashpt

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Wassup?

Interesting topic and notice aswell. Thanks for share!

technocoma

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Interesting read thanks

Enira

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Quote from: Bitcoinpro on December 23, 2013, 02:41:05 AM

Quote from: kireinaha on December 21, 2013, 06:36:00 PM

They'll barely get a ROI given that the difficulty will soon rise again. Would have been better to just buy $2 million of coins from an investor.

i agree

For every Amazon item you buy there has to be a Chinese/child labour manufacturer, a transport service and a website host to host the Amazon website.

Guess which one makes the most profit? Don't judge people to take the decision to be the web host / transport / manufacturer. We can't all be Amazon, then we would be selling vaporized air and promises.

It's perfectly sane if you have a low amount of money to burn on Bitcoin to just buy and hodl. But some investors should mine before we can actually spend a single Bitcoin, else our virtual account balance would just be sitting there in the dwellings of Cryptsy.

jthudgens

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Wow that facility is one beautiful work of art. Iceland is indeed a land of opportunity. I am green with envy & full of hope. Grin

Sheldor333

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Like always people with money have advantage over others. Nothing special there.

davedx

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Quote from: jaked on December 23, 2013, 02:33:30 AM

Quote from: eyjgvfdhbshm on December 22, 2013, 07:13:40 AM

It's just waiting for a quantum computer that will render all mining farms useless and that will mine every bitcoin left in a small amount of time.

Bitcoin is resilient to quantum computing.
And quantum computing is currently an unproven fantasy anyway.

Hardly. There have been big steps forward lately: http://www.independent.co.uk/life-style/gadgets-and-tech/breakthrough-in-quantum-computing-smashes-previous-records-8941862.html

Also: Bitcoin being "resilient to quantum computing": Citation needed Tongue

marcus_of_augustus

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Eadem mutata resurgo

Quote

REYKJAVIK, ICELAND, December 23, 2013 -- DataCell, Inc. (www.datacell.com) -- In response to huge demands from the Bitcoin mining industry, DataCell is pleased to announce the forthcoming launch of a dedicated facility based in Iceland. Our new co-location facility, planned for completion in early 2014, will offer miners by far the highest power density and rack space utilisation in use of any provider. With electricity prices less than half the price of central Europe and easier cooling Iceland is the perfect place for mining.

Wow, yet another prediction comes to fruition. Iceland is going to a major bitcoin mine for the world ... weird yet logical.

mog

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I've been speaking with a few DC operators here in Iceland. Datacell (the same company that sued VISA over wikileaks payment processing) had this announcement today.
https://www.datacell.com/news/special-offers-for-bitcoin-miners/

Bitcoinpro

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Quote from: kireinaha on December 21, 2013, 06:36:00 PM

They'll barely get a ROI given that the difficulty will soon rise again. Would have been better to just buy $2 million of coins from an investor.

i agree

jaked

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Quote from: eyjgvfdhbshm on December 22, 2013, 07:13:40 AM

It's just waiting for a quantum computer that will render all mining farms useless and that will mine every bitcoin left in a small amount of time.

Bitcoin is resilient to quantum computing.
And quantum computing is currently an unproven fantasy anyway.

ninjafocus100

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Quote from: max. on December 21, 2013, 09:08:39 PM

Have you think about why Google, Facebook, or Apple are not interested in mining bitcoins? They have the biggest data centers in the world.

For them it would be too easy and with the big resources they have they could control bitcoin in only some months.

They don't care because they don't see a value in bitcoin.

There is no Bitcoin DNA in those companies. They only focus on what they are good at. I believe when Bitcoin market matures, they will know how to make use or Bitcoin. May be accept it as a payment. Give it a few years.

iluvpie60

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Quote from: ohiofarmer on December 21, 2013, 05:09:15 PM

This is pretty insane: thanks to some outside investors, a former HSBC programmer has dumped more than $2 million (100 computers at $20K a pop) into a custom-built bitcoin-mining facility in Iceland. Energy's cheap there, and the cool climate's used to keep the equipment from overheating. To get into the windowless facility, you have to go past a fortified gate, a guard behind bulletproof glass, then through a "man trap."

"Last Wednesday ... the entire operation unlocked 225 Bitcoins, valued at around $160,000 at recent prices." Not bad! The full story is here:

http://dealbook.nytimes.com/2013/12/21/into-the-bitcoin-mines/

pretty sweet sounding.

davedx

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It is indeed something to consider. If the world's BTC mining consolidates into the control of a handful of people, we might see a sad loss of the democratic network.

People claim nobody with 51% will do double spends as it will devalue the currency. Are we so sure?

Is the future of BTC mining cartels like OPEC? What effect will this have on the BTC economy?

(I say this as a proud member of the DZ Coop...)

exahash

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Quote from: ohiofarmer on December 21, 2013, 05:09:15 PM

This is pretty insane...

This is insane for a different reason.

Can anyone think of why such an article is a bad idea in light of current events?

Anyone?

Anyone?

Bueller?

How about this... isolated data center in tiny country responsible for 15% of world's BTC identified to world's SIGINT organizations (China, NSA, GCHC, etc). Doesn't have to be that "the NSA is against bitcoin" - it only has to be a faction of one (possibly corrupt) organization with the ability to intercept and mangle communications and this guys in a world of hurt.

Mining installations greater than 1% of the network need to be secret.

Gabi

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If you want to walk on water, get out of the boat

Quote from: eyjgvfdhbshm on December 22, 2013, 07:13:40 AM

It's just waiting for a quantum computer that will render all mining farms useless and that will mine every bitcoin left in a small amount of time.

>switch to another algorithm not quantum-vulnerable
>problem solved

Eri

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Quote from: eyjgvfdhbshm on December 22, 2013, 07:13:40 AM

It's just waiting for a quantum computer that will render all mining farms useless and that will mine every bitcoin left in a small amount of time.

not possible. never mind the fact that tech is light years away. every 2016 blocks(roughly 2 weeks) the difficulty is adjusted. so even if they had 99% of the hashrate the network would adjust in short order and put the average back at 10 minutes.

eyjgvfdhbshm

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It's just waiting for a quantum computer that will render all mining farms useless and that will mine every bitcoin left in a small amount of time.

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