NewsletterTexas Senator Ted Cruz Bullish On Bitcoin, Says Bitcoin Mining Benefits US Economy
In a recent interview about the role of Bitcoin in the Texas economy with Forbes, US Senator Ted Cruz spoke passionately about the increasing significance of crypto in the state’s economy. Cruz highlighted what sets Texas apart from others is its deep appreciation for freedom, a sentiment that he believes resonates with digital asset enthusiasts.
Why Is Ted Cruz Bullish On Bitcoin?
According to Cruz, Bitcoin has the potential to enhance freedom by being uncontrollable. Referring to China’s ban on Bitcoin (BTC) as an example, he noted how governments react to the uncontrollable nature of the cryptocurrency.
Meanwhile, the uncontrollability of Bitcoin, achieved through its secure network, makes it more appealing to the US senator. The Bitcoin network relies on a proof-of-work consensus mechanism, where a decentralized network of computers worldwide expends energy to solve complex cryptographic puzzles.
The energy-intensive process also serves as a fair mechanism for issuing new Bitcoins, he added.
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Bitcoin Mining’s Impact on the Environment
Despite global criticisms of Bitcoin’s energy consumption, Cruz thinks that it brings some unique benefits to the energy sector. Texas, which is widely known for its abundance of inexpensive electricity, has witnessed notable growth in Bitcoin’s mining operations.
The Texas senator sees Bitcoin mining as an emergency power reservoir, explaining its role in demand response programs. According to Cruz, the Bitcoin miners can monetize excess electricity capacity, preventing it from going to waste.
This excess capacity can be quickly redirected to the grid whenever needed, enhancing the grid’s resiliency. Additionally, Cruz emphasized that Bitcoin mining could help address the issue of natural gas being wasted through flaring in West Texas due to a lack of infrastructure.
By harnessing the wasted energy for on-site Bitcoin mining, it can serve as a win-win solution for both the environment and the economy.
Ted Cruz is known for his appreciation for cryptos, especially Bitcoin. In January 2023, he lauded cryptos saying it is “generating new jobs,” and serving as secure payment options for goods and services.
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