Layer1 Technologies – a bitcoin mining startup operating in West Texas – has opened its doors for business.
Layer1: We Want to Compete with China
The company has specifically mentioned that it’s looking to counter bitcoin and crypto mining activity in China, which up until this point, has long been considered the world’s number one bitcoin and digital currency haven. At the time of writing, Layer1 has unveiled several 2.5-megawatt containers and is extracting several new coins.
The history of bitcoin mining in China is a strange one. The country has long been an advocate of crypto and was a prime location for anyone looking to potentially enter the industry and take up the digital reins. However, for several years, regulators spent time arguing back and forth regarding whether bitcoin and crypto mining should be allowed.
The consensus was that mining activities potentially caused irreparable damage to the Earth’s atmosphere, and many of these regulators weren’t okay with that. However, after several years of debating, it was finally decided late last year that crypto mining operations should be allowed to continue.
No doubt, China had quite a bit to lose granted bitcoin mining was ever outlawed, which is potentially why the country eventually said it should be allowed to go on. For one thing, the country is home to two of the world’s largest bitcoin and crypto mining companies in Bitmain and Canaan Creative. Each venture is worth billions of dollars, and thus stood to pay a lot of money in taxes to China each year. It is unlikely regulators wanted that to end.
At the same time, while bitcoin mining remains prominent within the country, it doesn’t look like lawmakers are taking any chances, and they’re looking to keep the industry as legitimate as possible. Recently, China shut down a string of crypto mining operations when it was reported that they were potentially stealing electricity from neighboring regions.
Despite the up-and-down history of crypto mining in China, the nation remains the dominant force behind bitcoin extraction, and Layer1 wants to change all this. At press time, the company claims it is responsible for approximately two percent of bitcoin’s total hash rate, and it expects this number to increase significantly in the coming months.
Layer1 states that it would like to account for roughly 30 percent of bitcoin’s hash rate by the year 2021. This would make it one of the most powerful and active bitcoin mining companies in the world.
Staying on Top
CEO Alexander Liegl explained in an interview:
We are already delivering on our vision of making Layer1 the world leader in vertically integrated, sustainable bitcoin mining. Our factory in West Texas is a game changer in bitcoin mining. The facility uses custom ASIC chips and patent-pending liquid cooling technology that enables us to unlock warmer climates.