Fortune Magazine has dedicated an article to the Bitcoin mining industry, bringing the topic to the attention of the general public. The analysis was based on the fact that Peter Thiel, the co-founder of PayPal, was involved in financing a new mining farm in Texas.
A startup funded by Thiel, Layer1, has announced the opening of its first Bitcoin mining facility, which covers over 30 acres and costs tens of millions of dollars. The farm is located about 100 miles west of Midland, Texas, where the cheapest US electricity is located.
This is achieved through natural gas overproduction and large investments in renewable energy through state government subsidies. In fact, the sources used by Layer1 are mainly wind energy, some of it coming from natural gas.
Fortune also mentions other companies in the sector, such as Hut 8, Bitmain and Bitfarms, which have expanded their existing facilities or built new ones.
The hash rate of the Bitcoin network is steadily rising, despite the fact that the half-block resumption will take place in May.
The price of Bitcoin cryptocurrency is influencing the industry
The Fortune article comments on this apparent absurdity, saying that the long-term value of a bitcoin mining investment will always depend on the price of the cryptocurrency. Reducing the block reward by half will have a negative impact on farms using older mining hardware.
However, many analysts expect the price of Bitcoin to rise due to halving, which would help miners offset losses caused by reducing the number of new currencies generated.
Overall, the Bitcoin mining industry is growing worldwide. In the last year, there was even a redistribution of large farms, which were traditionally concentrated in China.
Even in Romania, a farm with a capacity of 63 MW was recently opened, which can accommodate up to 63,000 Bitcoin mining rigs.
As Layer1 CEO said:
“We don’t care about half the block rewards. We just care about fighting our competition. ”
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