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 donors.
Bitcoin mining is a controversial field. Bitmain, a mining company from China, continues to dominate the market. The tendencies towards centralization, which are noticed here, again and again, contradict the Bitcoin ideal of decentralization. After all, this is a currency concept that is supposed to get by without any central institutions.
The dominance of China
However, 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 founded by PayPal founder Peter Thiel. With over 120 square kilometers, the new Bitcoin mining farm, according to Fortune, has already cost tens of millions of dollars. It was no coincidence that the Texas location was chosen: As Layer1 CEO Alexander Liegl told Fortune, Texas currently has the cheapest energy.
To counteract the Texas heat, use Layer1 on your own Bitcoin mining equipment. The hardware has integrated, oil-based cooling mechanisms. This means that the devices are protected from temperatures and from overheating. The resulting lower expenses and low energy costs made Bitcoin mining worthwhile.
Bitcoin mining location Texas
And that has been spreading in Texas since last year. Mining giant Bitmain is also based there. The company has been operating a facility in Rockdale since October last year to mine the cryptocurrency. The operation obviously did not go very smoothly. In January the company separated from a management partner due to a lack of profitability.
The German public limited company Northern Bitcoin AG has recently announced plans to move to Texas. The planned “mine” will initially start operating with an output of 300 megawatts. Northern Bitcoin plans to increase this output to 1 gigawatt by the end of the year.
Halving is coming up in May
Bitcoin halving is scheduled for May this year. At this event, the reward 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 the Bitcoin price up. In case you also think that the upcoming halving is going to drive the Bitcoin price up I recommend Coinbase to buy and manage your Bitcoins (BTC).
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