Edit in JSFiddle

<div class="pic">
    <img src="http://www.muratoner.net/images/test.jpg" width="200px" height="200px" />
</div>

.pic{
    float:left;
    height: 200px;
    width: 200px;
    margin: 20px;
    overflow: hidden;
    background-image:url('http://i691.photobucket.com/albums/vv273/muratoner/iStock_000013202244XSmall.jpg');
    background-size:200px 200px;
    border-radius: 10px;
    -webkit-box-shadow: 0 0 10px rgba(0,0,0,.3);
    box-shadow: 0 0 10px rgba(0,0,0,.3);
}

.pic>img{
    height:200px;
    width:200px;
    
    -webkit-transition:all 1s ease;
    -moz-transition:all 1s ease;
    -o-transition:all 1s ease;
    -ms-transition:all 1s ease;
    transition:all 1s ease;
}

.pic>img:hover{
    opacity:0;
}