2023-9-9 18:30 |
In an interview with Forbes, Texas Senator Ted Cruz voiced support for Bitcoin mining and affirmed that mining operations benefit the Texas economy and grid. Cruz admired the decentralized nature of cryptocurrency technology and talked about the financial freedom achieved through the uncontrollable nature of Bitcoin.
The senator highlighted the distinctive quality of Texas during his speech, emphasizing the profound affection its residents have for their freedom. He underscored this unique attribute by drawing attention to the role of Bitcoin.
Similarly, Cruz cited financial freedom as a focal point for creating crypto regulations implied by the world’s jurisdictions with their own point of view. He admitted China’s ban on cryptocurrencies as an example.
The Texas senator also shared the interview with his 3.4 million followers on X (previously known as Twitter) and added:
“Texas is a hub for jobs, innovation, and freedom—making it the natural oasis for Bitcoin mining. These operations can improve our grid resiliency since they can shut off during inclement weather and free up electricity to heat or cool homes.”
What Makes Sen. Cruz Bullish On Bitcoin?The US senator finds Bitcoin more alluring due to its uncontrollability alongside its secured network. As it relies on the proof-of-work consensus mechanism, the Bitcoin network involves a decentralized network of computers spread worldwide, working together to solve cryptographic puzzles to validate transactions.
Similarly, in exchange for the computational power a node contributes to the Bitcoin network, it is rewarded with the newly released Bitcoin. Also, the validators who confirm the transactions in the network receive BTC as a reward.
Cruz said that the Bitcoin network is an open-source code. Anybody worldwide can participate and earn. This method serves as a fair mechanism for the network to issue new bitcoins using the computing power of the world’s computers.
Despite the widespread criticism of Bitcoin mining for its energy consumption, Ted believes it could prove to be a valuable asset for the energy sector. Notably, in the State of Texas, renowned for its affordable energy rates, there has been a significant surge in the number of Bitcoin mining companies establishing themselves.
The senator explained that the state’s miners can play a vital role in electricity demand response programs. Working as an energy reservoir, Texas miners can take the load of the excessive power generated. He added that electricity provided to mining firms can easily be redirected on time whenever the country hits a power shortage.
He also emphasized that mining could prevent the pain of wasting natural gas in West Texas as it lacks the proper infrastructure to use it, so “half of the natural gas being flared in the US is burned.” Allowing miners to consume this “wasted gas” is good for the economy and for environmental purposes.
Texas Faces Power CrisisMeanwhile, Texas Bitcoin mining firms are forced to halt their mining operations due to the current electricity crisis the state has been facing. Since the power crisis started, the mining industry in the Lone Star State has seen more than a 90% drop in mining operations.
Regardless of low energy rates and user-friendly regulations, the state has ordered to cease all mining operations. Major mining companies like Riot Inc. and Marathon Digital, currently operating high-scale mining platforms in the region, are forced to shut down their operations as well.
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