Senator Ted Cruz: ‘Bitcoin can strengthen energy infrastructure’

Texas Senator Ted Cruz thinks there are huge opportunities for Bitcoin in Texas. According to him, bitcoin mining can make the power grid more robust and provide a solution for the wasteful and climate-unfriendly ‘flaring’, half of which takes place in Texas in the United States.

There are huge opportunities for Bitcoin in Texas, Texas Senator Ted Cruz said at the Texas Blockchain Summit. ?ǣFirst, from a Bitcoin perspective, Texas has an abundance of energy. If you look at wind energy, we are the number one producer in the country, by far ,?ǥ he said.

Flaring

According to Cruz, Bitcoin can offer solutions against the wasteful and climate-unfriendly ‘flaring’. In addition, gas released during oil production is burned because it is not profitable to capture. ?ǣFifty percent of the gas flared in this country is currently flared in the Permian basin in West Texas,?ǥ he says.

He thinks that’s a shame. “I think it’s a huge opportunity for Bitcoin because right now it’s energy that’s just wasted. It’s wasted because there’s no equipment to process the gas to harness it in the normal way. It’s just getting burned. So one of the really exciting things people are looking at is, can we capture that gas instead of burning it? To use it to hook up a generator on site and use the power to mine into bitcoin” , explains Cruz. That would also be very good for the climate, he thinks.

Strengthen the power grid

He also foresees a role for bitcoin mining to strengthen the power grid. Mining equipment consumes a lot of power, but the equipment can be easily switched on and off at any time. ?ǣIf you have a moment where the power production capacity drops, that creates the opportunity to let the power [miners take] flow back to the grid,?ǥ he explains.

The power that miners use under normal circumstances can then be used flexibly according to need. ?ǣThey [bitcoin miners] then become like additional reserves, which can bolster the robustness of the power grid by making significant power capacity available for critical services when needed. I think the potential is huge and I expect the landscape to change dramatically in five years’ time. has changed and that bitcoin mining plays an important role in strengthening and making the power grid more robust,” said Cruz.

“Much of the criticism directed at Bitcoin is about its energy consumption. The perspective I’m proposing is the opposite, namely that it can strengthen our energy infrastructure.” ???Ted Cruz, Texas Senator

Stranded renewable energy

Bitcoin also has the potential to make many ‘stranded’ renewable energy sources accessible. “There are many places on earth where the sun shines a lot and where the wind blows a lot, but where there is no power infrastructure. Therefore, it is not profitable to use that energy,” explains Cruz.

?ǣThe beauty of bitcoin mining is that if you have an internet connection, you can economically harness that energy in a way that was impossible before. And I think we will see huge innovations in that area over the next five years as well,?ǥ said Senator Ted Cruz.

Texas

Ted Cruz is not the only one in Texas who is excited about Bitcoin and bitcoin mining. Texas recently introduced new regulations giving bitcoin legal status, and Governor Greg Abbott is openly expressing a desire to lead Texas in the forefront of cryptocurrency adoption.

The strategy seems to be paying off. After a ban in China forced many bitcoin miners to look for new housing, Texas recently turned out to be one of the most popular destinations. Also last year, sustainable wind energy from Texas proved very popular with bitcoin miners.

In an earlier article we wrote about how bitcoin mining offers economic incentives against climate-unfriendly flaring and we also wrote about how the energy sector and bitcoin miners are increasingly finding each other. Curious about why bitcoin mining consumes so much power? You can read that here.

s: jbouie, license CC BY 2.0

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