Ted Cruz, a senator from the United States, wants to turn Texas into a haven for Bitcoin (BTC) and other cryptocurrencies. The lawmaker expressed his understanding of how the cryptocurrency business may be vital for the US energy supply and technological advancement during a speech at the Texas Blockchain Summit 2022 in late November.
Cruz stated that Bitcoin mining may be used to monetize energy produced by oil and gas extraction, highlighting that the activity can be used as a substitute for traditional energy storage and supply.
He said that substantial investment in Bitcoin mining, extreme weather conditions (extreme heat and extreme cold) are doing good for the Texas power grid because mining can be shut off immediately and the energy generated for mining activities can be directed towards households and other businesses to keep them warm. He calls it a ‘reservoir’ of energy with excess capacity.
“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 emphasized that Texas is a desirable location for the American cryptocurrency industry since it has abundant and relatively inexpensive energy and supports free enterprise.
He further revealed that he likes Bitcoin because the government cannot control it. He also revealed that Bitcoin is the only cryptocurrency in his wallet and that he purchases BTC on a weekly basis and
“I like Bitcoin because the government can’t control it.”
The state’s comptroller’s office took a pro-crypto stance in August, emphasizing the advantages of having miners in the state— this attitude has made Texas one of the centers for cryptocurrency mining in the US with the highest growth.
According to the Comptroller’s office, Bitcoin mining facilities do not have long term high energy demands on the grid, in contrast to “manufacturing facilities or industrial chemical plants, which can be expected to be around for decades.”
In June 2021, Texas Governor, Greg Abbot signed a law that puts virtual currency under the Texas Uniform Commercial Code. It made crypto transactions secure by recognising them and also laid out a definition for virtual currencies.