Ted Cruz says Bitcoin will strengthen Texas’s power grid. What do you mean? Let’s find out what’s behind this statement
Now it’s official: Ted Cruz is now a bitcoiner. Take into consideration that Ted Cruz is a Senator from Texas and Texas is fast becoming the largest Bitcoin site in the United States. While the politician may try to appeal to his constituency, that doesn’t negate his message.
He stated that “In five years, I expect to see dramatically different terrain with Bitcoin miners playing a significant role in strengthening and hardening the strength of the network” at the Texas Blockchain Summit.
In a fireplace chat, the senator was joined by Jimmy Song, a notorious Bitcoin maximalist. The main course of the menu was the energy consumption of Bitcoin mining.
What did Ted Cruz say about Bitcoin mining?
Concerns receive a consistent response from the Bitcoin community. Bitcoin mining is hungry for energy producers. It is a financial incentive that can be used to develop new clean energy sources. It can finance existing ones. Natural gas is the most striking example of such a use case scenario.
Surprised everyone, Senator Ted Cruz explained this concept beautifully.
In fact, he said, “If you take a look at natural gas, West Texas is where most of it is burned. Half of all the country’s natural gas that is burned is currently being burned in West Texas, in the Permian. This is a huge opportunity for Bitcoin because it is the energy that is being wasted.
It is simply wasted because there is no transmission equipment that can take natural gas to where it could be used in the same way natural gas would normally be used. It is burned. “
Bitcoinist covered this process two years ago, as usual. We have written:
The new solution will change this. Companies can now install Bitcoin mining equipment and extract gas with the new solution. There will be a significant reduction in carbon dioxide emissions due to oil and gas exploration. This will lead to greener mining.
It is also carbon neutral. It is also good for the climate. However, nowadays, Bitcoin mining can do even more.
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What is the “Answer to the Question” and how is it related to Bitcoin mining?
Surprising everyone, Ted Cruz was able to answer the question.
“Since Bitcoin mining can turn on and off instantly, it is possible to immediately move energy off the grid at a time when there is an energy shortage or crisis.
Bitcoin mining is unlike any other industry. It can be activated or deactivated at will. The question is, why should miners shut down their equipment? They would have a moral obligation to do so in an emergency.
However, it will also be a financial incentive. In a normal situation, the population will not require that much energy. That’s why Bitcoin mining platforms exist. The grid operator would buy the energy in an emergency situation, probably at a surcharge.
It is not economically feasible to build gas pipelines. However, they will build natural gas-powered generators on site, thanks to Bitcoin mining. The grid could buy this energy in an emergency.
The Texas Blockchain Summit also presented Nic Carter, a Bitcoin expert who introduced the “Question Answer” concept and elaborated on it. He claims that Bitcoin mining is an energy sponge in the “Bitcoin Mining” section of his speech.
Bitcoin mining absorbs excess supply during off-peak hours, which improves the economy for renewable energy projects.
When prices are high, miners reduce the load to give families easier access during times of high demand.