diff --git a/install/.dockerignore b/install/.dockerignore
new file mode 100644
index 0000000..3e95f18
--- /dev/null
+++ b/install/.dockerignore
@@ -0,0 +1,3 @@
+SatoshiPortal
+data
+script
diff --git a/install/Dockerfile b/install/Dockerfile
new file mode 100644
index 0000000..8f5c30b
--- /dev/null
+++ b/install/Dockerfile
@@ -0,0 +1,13 @@
+FROM alpine
+
+RUN apk add --update --no-cache \
+    curl \
+    dialog
+
+RUN mkdir /volume /script /data
+
+WORKDIR /script
+
+ENV TRACING=1
+
+CMD ["./configure.sh"]
diff --git a/install/bitcoind/script/configure.sh b/install/bitcoind/script/configure.sh
new file mode 100755
index 0000000..c2f9930
--- /dev/null
+++ b/install/bitcoind/script/configure.sh
@@ -0,0 +1,7 @@
+#!/bin/sh
+
+# TODO: config entry for persistent volume of bitcoind
+
+dialog --colors --textbox trace.sh 40 80
+
+
diff --git a/install/bitcoind/script/trace.sh b/install/bitcoind/script/trace.sh
new file mode 100644
index 0000000..34a18df
--- /dev/null
+++ b/install/bitcoind/script/trace.sh
@@ -0,0 +1,15 @@
+#!/bin/sh
+
+trace()
+{
+	if [ -n "${TRACING}" ]; then
+		echo "[$(date +%Y-%m-%dT%H:%M:%S%z)] ${1}" > /dev/stderr
+	fi
+}
+
+trace_rc()
+{
+	if [ -n "${TRACING}" ]; then
+		echo "[$(date +%Y-%m-%dT%H:%M:%S%z)] Last return code: ${1}" > /dev/stderr
+	fi
+}
diff --git a/install/bitcoind/templates/bitcoin.conf b/install/bitcoind/templates/bitcoin.conf
new file mode 100644
index 0000000..ca7e8ec
--- /dev/null
+++ b/install/bitcoind/templates/bitcoin.conf
@@ -0,0 +1,11 @@
+# testnet
+testnet=1
+
+#lnd opts
+txindex=1
+zmqpubrawblock=tcp://0.0.0.0:18501
+zmqpubrawtx=tcp://0.0.0.0:18502
+
+# general opts
+rpcuser=%RPCUSER%
+rpcpassword=%RPCPASSWORD%
diff --git a/install/script/cyphernodeconf.sh b/install/script/cyphernodeconf.sh
new file mode 100755
index 0000000..99dad8b
--- /dev/null
+++ b/install/script/cyphernodeconf.sh
@@ -0,0 +1,20 @@
+#!/bin/sh
+
+. ./trace.sh
+
+# this will run configure.sh of the specified package inside a 
+# cyphernodeconf container. This way we ensure we have the right
+# environment and do not pollute the host machine with utility
+# commands not needed for runtime
+
+cyphernodeconf_configure() {
+	PWD="$( cd "$( dirname "${BASH_SOURCE[0]}" )" >/dev/null && pwd )"
+	DATA_PATH=$PWD/../data
+	SCRIPT_PATH=$PWD/../$1/script
+	VOLUME_PATH=/tmp
+	docker run -v $VOLUME_PATH:/volume \
+	           -v $DATA_PATH:/data \
+	           -v $SCRIPT_PATH:/script\
+	           --log-driver=none\
+	           --rm -it cyphernodeconf:latest
+}
\ No newline at end of file
diff --git a/install/script/install.sh b/install/script/install.sh
index a186b92..b7f86fe 100755
--- a/install/script/install.sh
+++ b/install/script/install.sh
@@ -2,6 +2,7 @@
 
 . ./trace.sh
 . ./docker.sh
+. ./cyphernodeconf.sh
 
 trace "Updating SatoshiPortal dockers"
 git submodule update --recursive --remote
@@ -15,3 +16,9 @@ build_docker_image ../SatoshiPortal/dockers/$arch/LN/c-lightning clnimg
 build_docker_image ../../cron_docker/ proxycronimg
 build_docker_image ../../proxy_docker/ btcproxyimg
 build_docker_image ../../pycoin_docker/ pycoinimg
+
+# build setup docker image
+build_docker_image ../ cyphernodeconf
+
+# configure bitcoind
+cyphernodeconf_configure bitcoind
\ No newline at end of file