Senator Cruz wants to make Texas a crypto paradise – t3n – digital pioneers
Popular Bitcoin: Texas wants to become a crypto mining paradise. (Image: Jiap/Shutterstock)
US Senator Ted Cruz, known as a Bitcoin fan, wants to turn his home state of Texas into a crypto paradise. He does not see bitcoin mining as a problem. And he likes something else – the lack of control of the Biden administration.
The Bitcoin mining business model is not doing well at the moment. Because of the ongoing decline in the Bitcoin price – recently fueled by the FTX bankruptcy – mining is hardly profitable for companies.
In addition, there is pressure from the regulatory authorities – after China, now also in the USA. For environmental reasons, the state of New York recently banned cryptomining for two years in some cases.
However, only mining companies that rely on energy from power plants that use fossil fuels are initially affected. The industry fears that other US states could follow the example of New York.
That certainly doesn’t apply to Texas, at least not according to Senator Ted Cruz. He is considered a fan of Bitcoin and, according to his own statements, buys shares every week.
For him, bitcoin means investment, opportunity and prosperity, as well as financial freedom, Cruz said at the Texas Blockchain Summit 2022, like Cointelegraph reported.
Cruz sees Bitcoin mining, which is not particularly popular with environmental activists because of its high energy consumption, as an advantage for the US state’s power supply. The capacities can be used as energy storage and alternative electricity suppliers.
Specifically, Cruz sees the possibility of being able to simply switch off the power to the mining companies in exceptional cases. Be it in extreme heat or extreme cold, the capacities “occupied” by the mining companies could be made available to the grid.
Cruz calls this “an enormous reservoir of overcapacity.” In addition, Texas has plentiful and relatively inexpensive energy – making the state a paradise for bitcoin mining.
However, the Republican senator does not hide another advantage of Bitcoin, which he believes is a major one. “I love bitcoin because the government can’t control it,” Cruz said.
