Sen. Ted Cruz has announced his recent investment in cryptocurrency.
WASHINGTON, DC - JANUARY 11: Sen. Ted Cruz (R-TX) talks to reporters before attending the weekly Senate Republican policy luncheon in the Russell Senate Office Building on Capitol Hill on January 11, 2022 in Washington, DC. Almost 20 members of the Republican caucus announced their opposition to doing away with the 60-vote threshold and the filibuster in the Senate, which they say protects minority parties.
Bitcoin.com reports that the Republican senator has declared a Bitcoin purchase amounting to $50,000. Cruz showed that he personally bought Bitcoin assets worth between $15,001 and $50,000 on January 25th, at a time when the price of the world's top cryptocurrency was around $37,000.
As of this writing, the digital currency's value has gone up to roughly $42,800.
This purchase was revealed after Cruz has been increasingly announcing his support for Bitcoin. As per CNBC, the senator has been speaking out against regulations that look to impose new tax rules for cryptocurrency trading.
Among the ones he spoke against were the provisions included in the bipartisan Senate bill. In a tweet last August 2021, he said that the US government was "on the verge of passing legislation that would be terrible for cryptocurrency," further urging the supporters of digital currencies to "make their voices heard."
🚨🚨The Senate is on the verge of passing legislation that would be TERRIBLE for cryptocurrency.🚨🚨
The infrastructure deal contains DANGEROUS provisions that would devastate crypto and blockchain innovation.
Supporters of crypto need to make their voices heard. https://t.co/iXrcnne0tV— Ted Cruz (@tedcruz) August 7, 2021
Ted Cruz' crypto investment is not the only bit of the news, though. He has also touted his home state of Texas as a so-called "oasis" for the blockchain community, which includes bitcoin miners and innovators/traders in the crypto space.
However, the senator isn't really the only US lawmaker who's been dabbling in cryptocurrencies. He joins fellow Republicans Sen. Cynthia Lummis (WY) and Rep. Mark Green (TN), who MarketWatch recently reported as among the biggest crypto traders in the Congress last year.
But despite this, Cruz is still critical of the Congress' forays into cryptocurrency law, stating that the body is the only one "capable of screwing this (crypto trading) all up," as per the original Bitcoin.com report.
Read Also: US Treasury Wants Stablecoins to be Issued by Banks
Ted Cruz' Crypto Investment Isn't Without Some Challenges
Cruz was right to tout Texas as a Bitcoin trading and mining hub, judging by how investors have been flocking to the state recently. However, this thing isn't without its challenges which could affect the senator's investment in the foreseeable future.
For one, the stability of the Texas power grid is actually in question as of the moment, due to Bitcoin miners flocking to the state, as reported by KVUE.
HOUSTON, TEXAS - JUNE 15: Transmission towers are shown on June 15, 2021 in Houston, Texas. The Electric Reliability Council of Texas (ERCOT), which controls approximately 90% of the power in Texas, has requested Texas residents to conserve power through Friday as temperatures surge in the state. An increase in forced generation outages early into the Summer season has prompted this urgent request.
Miners were quick to say that Bitcoin mining actually brings balance to the grid-something that even Ted Cruz himself agrees to, reports CNBC. However, a few others are saying that mining operations need to be regulated to ensure the aforementioned balance.
All of this just boils down to one standout quality of crypto mining and trading as a whole: its sky-high energy requirements. Mining operations are massive power-guzzlers, mainly due to just how large they can get.
One such operation in Texas, as per the original KVUE report, employs 100,000 machines working at full tilt 24/7. They have to be run like that to maximize profits. All of the power being consumed is just too astronomical, that miners in the state were forced to shut things down temporarily to help the Texas power grid survive Winter Storm Landon (via VICE).
It is the insanely massive power consumption of crypto mining that could put a dent into Ted Cruz' crypto investment. But whether they actually would still remains to be seen.
Related Article: Russia's Energy Suppliers Share How At-Home Crypto Mining Can Be Prevented! Here are Their Plans
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Written by RJ Pierce
