Bitcoin Mining: Peter Thiel Backs Sustainability Play

Reading Time: 2 minutes

A Bitcoin mining operation which focuses on sustainability and has a valuation of $200 million has so far raised funds from Peter Thiel and other Silicon Valley heavyweights.

Disrupting High-Energy Mining

Layer1 is looking to disrupt Bitcoin mining by bringing a heavyweight amount of sustainable energy into the mix.

If there is any validity to the argument that Bitcoin consumes too much energy, energy-efficient mining outfits will be the wave of the future.

While the round that Thiel most recently participated in was undisclosed, Thiel also took part in the seed round for $2.1 million.

Thiel is a legendary investor in Silicon Valley. He famously co-founded PayPal, among other ventures which were more financial than technological.

Thiel has not worked on PayPal in quite some time.

Unlike PayPal, Thiel has been vocally pro-cryptocurrency.

PayPal, on the other hand, has quietly held its hand back from the crypto space.

Being one of the larger legacy wallet providers, PayPal could have quickly become a gateway to mass adoption if it had simply integrated Bitcoin along the way.

The fintech firm has yet to do any such thing, at least in any meaningful way, although it does from time to time explore blockchain patents.

Wind-Powered Crypto Revolution?

Layer1 will use wind power, but will also have back-up power, as CEO Alexander Liegl acknowledged to Coindesk will be necessary. The first operation will be based in Texas.

People have raised alarms over the years about the power consumption of Bitcoin.

Some have charged that the Bitcoin network uses more than many countries.

When energy-efficient sources of power are used, Bitcoin can pose a much lower risk to the environment on the daily basis.

Bitcoin still implies waste from electronics that are made to use it, which eventually wear out and go to the dump.