Senator Ted Cruz of Texas has stated that he and other Republican members of the state would like to see Texas become the center of the cryptocurrency universe. This announcement was made by Cruz at the Texas Blockchain Summit.
Rebuilding the Community Economy
The largest Bitcoin mine in North America, operated and owned by Whinstone U.S. and located in Rockdale, has quickly become an important part of the town’s economy, adding around 145 jobs, and is also becoming an integral part of the community. Whinstone CEO Chad Everett Harris has revealed that plans are in the works to expand the mining facility and make it the world’s largest mining facility.
Texas’ Ambitions Are Central
Rockdale is right in the heart of Texas’ crypto ambitions, with the state attracting the cryptocurrency industry as both federal and state lawmakers work to lay the groundwork for Texas’ blockchain industry. Industry leaders in the blockchain space, for their part, say they are drawn to Texas because of its low energy costs and friendly regulatory policies.
While speaking at the Texas Blockchain Summit, which drew around 700 attendees, U.S. Sen. Ted Cruz, R-Texas, stated that he hopes to see Texas become the center of the Bitcoin universe and crypto. In Texas, Republican politicians made an impassioned case for the crypto space.
There are still some skeptics.
The nascent industry, however, has its fair share of skeptics and detractors. Because of the Proof-of-Work Consensus mechanism used by cryptocurrencies such as Bitcoin, several people have raised concerns about the significant amount of energy required to mine them. This has raised significant concerns about the environment, as well as the additional strain it would place on Texas’ already overworked and fragile power grid.
Growth has also occurred in spurts; in 2018, a Chinese company developing specialized computers for crypto mining promised a $500 million investment and hundreds of jobs, but this did not materialize. Leaders in Texas, on the other hand, are pressing ahead with their plans, with Texas Gov. Greg Abbot meeting with the Texas Blockchain Council and promising that the state would soon be the number one destination for the blockchain industry and cryptocurrencies.
A winning combination
According to crypto entrepreneurs and Texas Republicans, crypto and Texas are a perfect match. Senator Cruz described the relationship as a “natural synergy” between the state’s ethos and blockchain technology.
He also stated that Texas “lionizes” entrepreneurs, with the state’s anti-regulatory laws particularly appealing to the crypto industry, which places a high value on privacy. Cruz stated that the cryptocurrency industry is based on individual liberty, individual responsibility, and independence from the government.
Everett Harris elaborated on this point, saying,
“We came here for the power and the deregulated market,” Harris explained. “We were aware that power was a competitive factor. And we knew that if we did it on a large scale, we could get power at a lower cost.”
Concerns About Energy And Climate
For a long time, China was the undisputed leader in bitcoin mining and cryptocurrencies. However, following the government crackdown on Bitcoin and other cryptocurrencies, particularly due to environmental concerns, the crypto industry has sought alternative options.
Texas Republican leaders have expressed no concerns about energy consumption or the impact on the environment, with Senator Cruz stating,
“A lot of energy is required for bitcoin.” If there is one thing Texas has in abundance, if there is one thing Texas understands deeply, it is energy.”