By
Chimamanda U. Martha
April 18th, 2024
Bitcoin mining has become a key industry for the state of Texas following China’s May crackdown on industrial Bitcoin mining firms.
Foremost US Lawmaker, Senator Ted Cruz has argued that the country should commence the use of natural gas to mine Bitcoin rather than flaring it.
Cruz, widely known for his controversial comments on the financial technology industry, made this proposition while speaking at the Texas Blockchain Summit which held on October 8.
He argued that by mining Bitcoin, the country can easily monetize the energy created through oil and gas extraction rather than burning it because of the enormous opportunity for Bitcoin to capture that gas instead of wasting it.
Speaking further, he maintained that half of the natural gas flared in the country is currently being burned in West Texas.
“Its being wasted because there is no transmission equipment to get that natural gas where it could be used the way natural gas would ordinarily be employed,” the US Senator said.
He also explained one major benefit of doing this is that the instant you’re doing it you’re helping the environment enormously because rather than flaring the natural gas you’re putting it to productive use.
“In five years I expect to see a dramatically different terrain with Bitcoin mining playing a significant role in strengthening and hardening the resilience of the grid,” he added.
While emphasizing the capacity for Bitcoin mining to be mobilized reflexively in response to fluctuating energy supply, he also noted that the energy could also be immediately returned to the grid in the event of a sudden power outage or shortage.
“There are a lot of places on Earth where the sun shines a lot and the wind blows a lot but there arent any power lines and it’s not economically feasible to use that energy,” he said to buttress his argument that Bitcoin can be used to capture unutilized energy across the globe.
This new proposition by Cruz that Bitcoin mining could offer an efficient means to capture renewable energy is however not the first globally.
Recall that recently, El Salvador announced plans for a state-backed Bitcoin mining project powered by the volcanic energy in the country.
Bitcoin mining has become a key industry for the state of Texas following China’s May crackdown on industrial Bitcoin mining firms.
Many miners have turned to Texas for its cheap and abundant renewables, while others looked to Kazakhstan, Norway, and Canada to access inexpensive green electricity.
A CNBC report revealed that Texas is a choice location for many Bitcoin miners because of its ”Crypto-friendly lawmakers, a deregulated power grid with real-time spot pricing, and perhaps most importantly, access to significant excess energy which is renewable, as well as stranded or flared natural gas.”