Texas Senator Ted Cruz expressed support for Bitcoin mining in an interview with Forbes and confirmed that the mining business is beneficial to the Texas economy and power grid. Cruz admires the decentralized nature of cryptocurrency technology and spoke of the financial freedom achieved through Bitcoin’s uncontrollable nature.
In his speech, the senator emphasized the unique qualities of Texas, underscoring the state’s residents’ deep affection for freedom. He highlighted this unique attribute by drawing attention to Bitcoin’s role.
Likewise, Cruz made financial freedom a focus for developing cryptocurrency regulations, something jurisdictions around the world have hinted at with their own views. He acknowledged citing China’s ban on cryptocurrencies as an example.
The Texas senator also shared the interview with his 3.4 million followers on X (formerly Twitter) Add to:
“Texas is a center of jobs, innovation, and freedom, making it a natural oasis for Bitcoin mining. These operations increase our grid resiliency because they can shut down during severe weather and release power to heat homes Or refrigeration.”
What makes Senator Cruz bullish on Bitcoin?
The U.S. senator believes Bitcoin is more attractive because of its uncontrollable nature and its security network. Because the Bitcoin network relies on a proof-of-work consensus mechanism, it involves a decentralized network of computers around the world that work together to solve cryptographic puzzles to verify transactions.
Likewise, in exchange for the computing power a node contributes to the Bitcoin network, it is rewarded with newly released Bitcoins. Additionally, validators who confirm transactions in the network receive BTC as rewards.
Cruz said that the Bitcoin network is open source code. Anyone from anywhere in the world can participate and make money. This method serves as a fair mechanism for the network to use the computing power of the world’s computers to issue new Bitcoins.
Although Bitcoin mining has been widely criticized for its energy consumption, Ted believes it could prove to be a valuable asset to the energy industry. Notably, Texas, a state known for its affordable energy prices, has seen a significant increase in the number of companies setting up their own Bitcoin mining companies.
The senator explained that the state’s miners can play a vital role in electricity demand response programs. As an energy storage reservoir, Texas miners can bear the load of excess electricity generated. He added that whenever there is a power shortage in the country, the power supplied to mining companies can be easily diverted on time.
He also stressed that mining could avoid the pain of wasted natural gas in West Texas, where “half of the natural gas burned in the United States is flared” because the state lacks the proper infrastructure to use it. Allowing miners to consume this “off-gas” has both economic and environmental benefits.
Texas faces power crisis
Meanwhile, Bitcoin mining companies in Texas have been forced to halt mining operations due to the power crisis currently facing the state. Mining operations in the Lone Star State’s mining industry have dropped by more than 90% since the power crisis began.
Despite low energy prices and favorable regulations, the state ordered a halt to all mining operations. Major mining companies such as Riot Inc. and Marathon Digital, which currently operate large mining rigs in the region, have also been forced to shut down operations.
Featured images from Pixabay and charts from TradingView.com