Entries with tag bitcoin mining.

Company Conducts Industrial-Scale Bitcoin Mining

The process of bitcoin mining—the creation of new bitcoins—is intended to be computationally intensive to discourage counterfeiters from trying to manipulate the system. Some individuals have built custom computer systems for more efficient mining operations. It was only a matter of time, given the increased interest in and value of the virtual currency, that someone decided to scale up such an operation. Dave Carlson has taken this to another level by scaling up this process and creating MegaBigPower, which is now a major bitcoin-mining organization. CEO Carlson said his operation will soon account for between 7 and 10 percent of the world’s bitcoin-mining processing power. He plans to reach that goal with thousands of bitcoin-mining computing units, using 1.4 million BitFury bitcoin-mining chips managed by a tiny Raspberry Pi computer. The company spent between $3 million and $5 million for the system and is now generating between 7,000 and 8,000 bitcoin—worth between $3.1 million and $3.5 million—per month. The operation’s primary investor is the Polish nonprofit R&D organization BioInfoBank. MegaBigPower also rents capacity on its system to others interested in bitcoin mining. (SlashDot)(Ars Technica)

Skype-Based Malware Forces Computers into Bitcoin Mining

Newly discovered malware spreading via Skype is transforming infected computers into Bitcoin-mining machines. Bitcoin mining is a legitimate process in which an individual or pool of individuals exchanges time on their computer for processing Bitcoin transactions, such as certifying a transaction by finding a sequence of numbers, for Bitcoin. The malware is spreading via e-mail messages with a malicious link attached. Researchers from security vendor Kaspersky Lab say this bad link has been accessed more than 2,000 times every hour. Infected machines perform a computational task that triggers the release of Bitcoin in exchange for its completion and generate Bitcoin currency for the hacker. The more machines that do this, the more quickly the Bitcoins add up. Kaspersky researcher Dmitry Bestuzhev said he discovered most victims are located in Italy, with others in countries such as Russia, Poland, Costa Rica, and Spain. The network appears to be sending information to a command-and-control computer in Germany. The value of the virtual currency has doubled in a week, reaching $200 per Bitcoin for the first time earlier today. Reportedly, $2.3 billion in Bitcoin currency is in circulation. (BBC)(Mashable)(TechCrunch)(Kaspersky Lab Securelist)

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