These photos show you inside an Icelandic bitcoin mine
![A Bitcoin (virtual currency) paper wallet with QR codes and a coin are seen in an illustration picture taken at La Maison du Bitcoin in Paris, France, May 27, 2015. British authorities have come out in support of digital currencies in the name of promoting financial innovation, while proposing that regulations should be drawn up to prevent their use in crime. But it is technophiles who are leading the drive to make London a real-world hub for trade in web-based "cryptocurrencies", of which bitcoin is the original and still most popular. Picture taken May 27, 2015. REUTERS/Benoit Tessier - RTX1EWTP](https://assets.weforum.org/article/image/large_dyseRRHMcGqjuSUBRbaDl3boCIg5WcGMG0hBelRxDZs.jpg)
A Bitcoin paper wallet with QR codes and a coin. Image: REUTERS/Benoit Tessier
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Digital Communications
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](https://assets.weforum.org/editor/9zF995femHvw03ToIiXyZR8ToqCgWJBDuPTDGITYYxI.jpg)
![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.](https://assets.weforum.org/editor/-pv_W6OLGIvWLl31iOI8VdJKRd4jjAECV7m1H0zV3t0.jpg)
![The company had early mines in Bosnia and China, and most of its operations are now based in Iceland.](https://assets.weforum.org/editor/Dv0JCN5CxmBYnvWv-Xk9nB8DfRwawoU43pL9hkIEo-4.jpg)
![The country boasts three very important qualities for mining: cheap energy, good internet connections, and a cold climate.](https://assets.weforum.org/editor/R6PnBHDRX2PzxlKBQPz_v9eLhLRRFe89hCoENseqlAA.jpg)
![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.](https://assets.weforum.org/editor/BsmjJaxBPVJsyIF_8D-Azxe-CSj5GWgHnvGd-2gvA60.jpg)
![Even so, Genesis' electricity consumption is very significant. CEO Marco Streng says energy companies](https://assets.weforum.org/editor/qdCMpyqdy46za9XBoaew82QKvEEcB4d-iiasm3usbl0.jpg)
![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.](https://assets.weforum.org/editor/2MDEFyj6cf9yvTh3OmFRki4Mrq24OCl8ltiiDA5CxxU.jpg)
![But there are a lot of other costs, including hardware, production costs and staffing.](https://assets.weforum.org/editor/c0ooyo4S_ohhbyA-6qqq2n6WUlHNWs1SpOZ7PAN8FyE.jpg)
![Streng says cloud mining](https://assets.weforum.org/editor/jP2fEibdCUPxvegiiL2A2cT7kBT43tsMZ4FzNZYM-v8.jpg)
![Ponzi schemes can pop up, with perpetrators using later customers' money to pay earlier customers while keeping most for themselves.](https://assets.weforum.org/editor/h-rBsixPcGeb3GntFl_43U6kVqz7h7NFcmyc_0KoPD8.jpg)
![Genesis doesn't just mine bitcoin. It has also started mining Ethereum — another type of digital currency that can support decentralised applications and](https://assets.weforum.org/editor/D4PWE_E8e9JgYrt476JkAAHagiXxEG0ns6qo5nLww_k.jpg)
![The price of Ethereum is now $16.70, while Streng says electricity costs to mine it are $3.85.](https://assets.weforum.org/editor/u-w3cjsYZdZRsvRh6qJf-DrQl867uo8gHSoOzoKy1w4.jpg)
![Here's another shot of Genesis' mining operations. More than 10,000 mining GPUs are in this one room.](https://assets.weforum.org/editor/gZRLDMCBLEKNv3fIPc3pAo1t9-WQexr3pcQlMAYULhw.jpg)
![So what are the conditions like in the mine itself? Speaking in a promotional video, chief technical officer Stefan Schindler is candid:](https://assets.weforum.org/editor/H8bntpi1aoQ6Q6EjbnByCiOWpi5sgx8t5HgmyB_GSfQ.jpg)
!["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." Heat is another factor — parts of the facility reach 40 to 50 degrees Celsius (104 to 122 Fahrenheit).](https://assets.weforum.org/editor/G0GVtJIb503qsxiD5_3iBmmlwPJnxA1Uisx-3FAIPwY.jpg)
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