PayPal founder wants to control 30 percent of the BTC hash rate

The Bitcoin mining company Layer1 plans to take 30 percent of the hash rate in the BTC network. The company’s ambitious plans are already supported by financial backers.

Bitcoin Mining is a controversial field. Bitmain, a mining company from China, continues to dominate the market. The centralization tendencies, which are always noticeable here, contradict the Bitcoin ideal of decentralization. After all, we are dealing here with a monetary concept that is supposed to get along without any central institutions at all.

But the Chinese dominance in the mining sector is now to be broken up – at least in part: A new Bitcoin mining farm in the US state of Texas went into operation on February 19. The farm is operated by Layer1, a start-up that was founded by PayPal founder Peter Thiel. With over 120 square kilometers, the new Bitcoin mining farm has already cost tens of millions of US dollars, according to Fortune. It was not by chance that Texas was chosen as the location: As Layer1 CEO Alexander Liegl emphasizes to Fortune, Texas currently has the cheapest energy.

In order to counteract the Texas heat, Layer1 relies on its own equipment for Bitcoin mining. The hardware has integrated, oil-based cooling mechanisms. This makes the devices independent of temperatures and protects them from overheating. The resulting lower expenses and low energy costs made Bitcoin Mining worthwhile.

Compared to the upcoming Halving, Liegl is unimpressed. The main focus of Layer1 is to beat the competition.

 

Bitcoin mining location Texas

And it’s been building up in Texas since last year. Mining giant Bitmain, for example, is based there. Since October last year, the company has been operating a corresponding plant in Rockdale to mine the crypto currency. Apparently the operation did not run very smoothly. In January, for example, the company parted with a management partner due to lack of profitability.

Also the German stock corporation Northern Bitcoin AG recently announced plans to settle in Texas. The planned “mine” is to start operations initially with a capacity of 300 megawatts. By the end of the year, Northern Bitcoin plans to increase this capacity to 1 gigawatt.

 

Halving is scheduled for May

Bitcoin Halving is scheduled for May this year. At this event, the reward that miners receive for successfully mined blockchain blocks in addition to transaction fees will be reduced from 12.5 BTC to 6.25 BTC. The event is suspected of driving up the Bitcoin price.