There are many Bitcoin mining operations all over the world. Some of these are much more profitable than others. Billionaire investor Peter Thiel has announced that he has become involved in a Bitcoin mining startup that is based in Texas. He has given the startup $50 million in seed money. Thiel has been one of the biggest proponents of Bitcoin and other cryptocurrencies over the past decade. He is now putting his money where his mouth is. He is not worried about the recent crash that caused Bitcoin to lose 20 percent of its value in only a matter of days. He feels that Bitcoin’s best days are yet to come.
There are a lot of things that go into Bitcoin mining. The chips that are used in the process will get very hot. Therefore, it is essential that these chips are kept cool. Otherwise, they will burn out and need to be replaced before the mining can continue. There is also the issue of electricity. There is a massive amount of electricity used while mining for Bitcoin. Therefore, this has caused many smaller Bitcoin mining operations to devise ways to steal their power. The new operation backed by Peter Thiel will not need to resort to criminal behavior to supply all of their power needs.
The name of the company that is overseeing the project is called Layer1. Their eventual goal is to make Texas the most prominent place for Bitcoin mining in the world. The one big problem that Texas has in terms of Bitcoin mining is the intense heat. This is especially true during the summer. This makes it even more difficult to keep the chips cool. Bitcoin mining operations in cold climates like Russia are in ideal locations because having the chips overheat is less of a concern in these places.
Peter Thiel’s Texas Bitcoin mining operation will have a power substation that will be totally under their control. They will also be buying solar and wind power. Thiel still believes that cryptocurrency is the future of commerce around the world. There are certainly many prominent people who would disagree with him. He said the opportunity to get involved in this particular Bitcoin mining operation was too good to pass up. He believes that he will be able to make back his initial investment in a relatively short period of time. Only time will tell if this is the case.
