Ted Cruz, the junior United States Senator for Texas, believes that bitcoin could be a lifeline amidst the inflationary environment created by Washington’s irrational decisions. Cruz has openly declared that he owns slightly over 2 BTC and has a standing purchase order every Monday to acquire more of the primary cryptocurrency, irrespective of its price.
BTC: A Hedge Against Inflation and More
During a recent appearance at The Bitcoin Policy Summit, Cruz explained his enthusiasm for BTC and why a possible central bank digital currency (CBDC) launch would not benefit Americans. The politician expressed his excitement and bullishness regarding BTC, describing it as the “alfa in the crypto sphere.” Cruz also believes that BTC is digital gold.
Cruz thinks BTC’s most significant merit is its ability to hedge against the worrying inflation that has spread across the US and many other countries. The politician backed the premise that the asset’s hard cap of 21 million coins could give it anti-inflationary properties, contrasting it with the limitless printing of fiat currency by central banks that have led to significant inflation in recent years, as noted by Cruz.
Another reason Cruz is a keen supporter of BTC is that it cannot be controlled by governments. He noted that China banned all operations involving cryptocurrencies since the government cannot control them.
Moreover, Cruz admitted being a bitcoin investor, owning a little more than 2 BTC. He has a standing purchase order every Monday to increase his BTC investment, regardless of the altcoin’s valuation.
In addition to BTC, Cruz warned that the potential introduction of a digital dollar could harm the US monetary system. Cruz expressed his concern that CBDCs could have a significant adverse effect on BTC’s value, destroy anonymity, and decentralization, whereas China intends to use it to achieve precisely this. The Senator established a bill last year that aims to restrict the Federal Reserve from issuing CBDCs.
“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