PayPal Co-founder Fights For Bitcoin Hashrate
Competing for higher Bitcoin production in the United States
China's domination in Bitcoin production is no secret. According to the latest blog post by Alexander Liegl, Co-founder and CEO of Layer1, industry research shows over 60% of Bitcoin’s hashrate and 100% of Bitcoin hardware production are located in China.
In fact, less than 5% of Bitcoin’s hashrate and 0% of hardware production are located in the United States.
Layer1 Technologies plans to set up Bitcoin mining operations in Texas, strengthening Bitcoin's decentralization and usage of renewable energy. The usage of sustainable energy for mining is of high importance - Bitcoin is a form of energy storage.
Renewable energy companies often face energy surpluses within their regional boundaries. This meant that electricity storage is limited and often companies stop generating or harnessing energy until the surplus is used up. Bitcoin could change this phenomenon by storing excess energy. However it is unclear how the shift may affect the actual Bitcoin prices.
The lowering of Bitcoin's mining costs with renewable energy could also reduce Bitcoin's operational costs. The current dependence on mining hardware in China unbalances Bitcoin's decentralized movement. Thus Layer1 will introduce competition:
In Texas, world-class electricity prices, friendly regulation, and an abundance of renewable energy sources meet. It is here that we are rapidly scaling our mining operations to bring as much hashrate as possible back to the United States.
Whoever is future-ready in Bitcoin mining could have a larger say in improving Bitcoin's regulations and shape Bitcoin into a trillion-dollar asset class.
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