US Senator Ted Cruz made passionate remarks about the increasing importance of cryptocurrency in the Texas economy in a recent interview with Forbes. Cruz emphasized the deep value Texas places on freedom, which he believes resonates among crypto enthusiasts and sets the state apart from others.
Why is Ted Cruz Expecting an Increase in Bitcoin?
According to Cruz, Bitcoin has the potential to enhance freedom through its uncontrollable nature. Referencing China’s ban on Bitcoin and cryptocurrencies as a whole, the US senator highlighted how governments react to the uncontrollable nature of cryptocurrency. The uncontrolability achieved through Bitcoin’s secure network makes it more appealing to Cruz.
As known, the Bitcoin network is based on a complex Proof of Work consensus mechanism, where a decentralized computer network solves cryptographic puzzles by consuming energy. This energy-intensive process also serves as a fair mechanism for mining new BTC.
The Environmental Impact of Bitcoin Mining
Despite global criticism of Bitcoin’s energy consumption, Cruz believes it brings some unique benefits to the energy sector. Texas, known for its abundant cheap electricity, has witnessed significant growth in Bitcoin mining operations.
While considering Bitcoin mining as an emergency power source, the US senator explained its role in responding to demand programs. According to Cruz, Bitcoin miners can prevent excess electricity capacity from going to waste by converting it into money.
Redirecting this excess capacity to the grid when needed can increase grid flexibility. Cruz also highlighted how Bitcoin mining in West Texas could help solve the issue of wasted natural gas due to infrastructure deficiencies. In his view, utilizing wasted energy for Bitcoin mining could serve as a win-win solution for both the environment and the economy.
Cruz is a well-known figure for his appreciation of cryptocurrency, especially Bitcoin. In January, he praised crypto for creating new jobs and serving as a secure payment option for goods and services.
