Texas combines plentiful energy at relatively low prices with free enterprise, according to the lawmaker.
United States Senator Ted Cruz wants to make the American state of Texas an oasis for Bitcoin and other cryptocurrencies. Speaking at the Texas Blockchain Summit 2022 in late November, the politician empathized how the crypto industry can be strategic for the U.S. energy supply and technological development.
Cruz argued that Bitcoin mining could be used to monetize energy created by oil and gas extraction, emphasizing that mining activity can be used as an energy storage and supply alternative:
“The beauty of it [Bitcoin mining] is when you’ve got substantial investment, as we do in Texas and Bitcoin mining, when you have an extreme weather event, either extreme heat, which is frequent in the state of Texas or extreme cold, which sometimes happens here, Bitcoin mining can be shut off in a fraction of a second. Making that electricity immediately available to the grid to heat or cool people’s homes, to keep businesses running. That is an enormous reservoir of excess capacity that, I think, is very beneficial.”
The senator highlighted that Texas has abundant and relatively low-cost energy and embraces free enterprise, making the Lone Star State an attractive place for the U.S. crypto industry. Cruz also explained why he describes himself as an enthusiastic fan of Bitcoin:
“I like Bitcoin because the government can’t control it.”
The Republican lawmaker also said he makes weekly purchases of Bitcoin, the only cryptocurrency in his portfolio. He noted:
“I think Bitcoin means investment. It means opportunity. It means prosperity. It means financial independence. I also think the rise of bitcoin mining in Texas has an enormous positive benefit for resiliency of the grid.”
Texas is one of the fastest-growing crypto mining hubs in the United States. In August, its Comptroller’s office struck a pro-crypto stance, highlighting the benefits of the state hosting miners.
The Comptroller’s office wrote that unlike “manufacturing facilities or industrial chemical plants, which can be expected to be around for decades,” cryptocurrency mining facilities do not place long-term electrical demands on the grid.