Here’s Why Senator Ted Cruz Likes and Owns Bitcoin

The American politician serving as the junior United States Senator for Texas – Ted Cruz – thinks bitcoin could be a lifeboat amid the inflationary environment supposedly created by Washington’s irrational decisions. 

He revealed holding slightly more than 2 BTC and having a standing order to buy more of the primary cryptocurrency every Monday morning, regardless of its price. 

BTC: A Hedge Against Inflation and So Much More

In a recent appearance at The Bitcoin Policy Summit, Cruz explained why he is such a keen supporter of the asset and why a potential launch of a central bank digital currency would not benefit Americans. 

He admitted being “incredibly excited and bullish” on the asset, describing it as “the alfa in the crypto sphere.” The politician also put his name on the list of people who view BTC as digital gold.

Cruz believes its main merit is its ability to serve as a hedge against the worrying inflation that has spread across the US and many other countries. He backed the thesis that BTC’s hard cap of 21 million coins ever to exist could give the asset anty-inflationary characteristics. 

The fixed supply contracts with the limitless printing of fiat currency that central banks could and have executed (especially during the COVID-19 pandemic). Cruz criticized the American authorities for allowing this policy and thus lifting inflation to unseen levels in years:

“We see inflation all across the country driven by this spending binge that happened in the last two years in Washington that unleashed significant inflation.”

Another reason why the Republican adores BTC is that it can’t be controlled by governments, saying this is why China prohibited all operations involving cryptocurrencies:

“I like bitcoin for the same reason that the Chinese communist government doesn’t like bitcoin. They don’t like bitcoin, and they banned it because they can’t control it.” 

Subsequently, Cruz admitted being a bitcoin investor, having a little more than 2 BTC. He also has a standing purchase order every Monday to increase his exposure, regardless of the momentum valuation.

CBDC Should not Pop up in the US

Besides highlighting his support for bitcoin, Cruz argued that the potential launch of a digital dollar could harm the local monetary system:

“I’m very concerned about the risk of a CBDC. I think that is exceptionally dangerous; we see China moving forward with the intention of using a CBDC to destroy all the value of bitcoin, to destroy anonymity, to destroy decentralization.”

The Senator introduced a bill last year that aims to restrain the Federal Reserve from issuing such a financial product. 

“This bill goes a long way in making sure big government doesn’t attempt to centralize and control cryptocurrency so that it can continue to thrive and prosper in the United States. We should be empowering entrepreneurs, enabling innovation, and increasing individual freedom – not stifling it,” he stated back then.

Featured Image Courtesy of CNN