Interesting idea. I don't have any knowledge on the subject, but it would be pretty cool if it worked. I like how it looks.

The main issue is that moss prefers to stay moist, and peppers like to stay dry. You're going to run into problems trying to keep both happy at the same time.

Instead of moss, try using some of the herbal covers like elfin thyme. Those tolerate dry conditions much better than moss, so you won't be overwatering your peppers just to keep the mulch happy.

Moss can mat up thickly, especially in containers, and form a layer that excludes proper water/oxygen infiltration into the soil.

It was/is a major "pest" in some container research plots I've worked with.

Thank you all for the opinions.

Caelian

It is a lovely moss, but would not be healthy for the soil-interface for the reasons mentioned above. With bonsai, moss is added to the pots during display, and then grown elsewhere the rest of the year.

Josh