Speaking at the Texas Blockchain Summit on October 8, Senator Cruz said Bitcoin mining can be used to monetize the energy created through oil and gas extraction rather than burning it, arguing that there is “a huge opportunity for bitcoin […] to capture that gas instead of wasting it ”.
According to a transcript of the speech shared on social media by Coin Metrics founder Nic Carter, Cruz noted that half of the natural gas burned in the country is currently being burned in West Texas. “It is wasted because there is no transmission equipment to get that natural gas where it could be used in the way natural gas would normally be used,” he added.
“Use that power to mine bitcoins. Part of the beauty of this is that the instant you do it, you are helping the environment enormously because rather than wasting natural gas you are making it productive ”. Cruz stressed bitcoin mining’s ability to be reflexively mobilized in response to fluctuating energy supply, stating that energy could be immediately returned to the grid in the event of a sudden power outage or shortage.
“Five years from now I expect to see dramatically different terrain with bitcoin mining playing a significant role in strengthening and hardening the resilience of the network,” he added. Cruz noted that bitcoin can be used to capture unused energy around the world, arguing: “There are many places on Earth where the sun shines a lot and the wind blows a lot, but there are no power lines and it’s not economically feasible to use that. ‘power”.
“The beauty of bitcoin mining is that if you can connect to the internet, you can use that energy and derive value from renewable ones in a way that would otherwise be impossible.” Cruz isn’t alone in believing that bitcoin mining can offer an efficient means of capturing renewable energy, with El Salvador recently announcing plans for a state-backed bitcoin mining project powered by renewable sources.
Bitcoin mining has become a key sector for the state of Texas following China’s crackdown last May on industrial bitcoin mining companies. Many miners have turned to Texas for its cheap and abundant renewables, while others have looked to Kazakhstan, Norway and Canada for access to cheap green electricity.