In an interview today with Sean Hannity on Fox News, Ted Cruz said that Bitcoin has a lot of potential. Hannity asked Cruz about Bitcoin and cryptocurrency after just having the Bitcoin bull and CEO of MicroStrategy, Michael Saylor, on the show.
"I think it has a lot of potential. I think we're seeing enormous growth in it. I think part of the reason we're seeing people go to Bitcoin is because we're on the verge of an inflation crisis. Joe Biden has proposed $7 trillion in spending. and we're seeing inflation," said Cruz on why he thought Bitcoin has become attractive to so many investors.
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Cruz continued, highlighting various sectors and assets that have experienced the most inflation from the enormous spending the government has recently done.
"We're seeing lumber going up, homes going up, oil going up, gasoline going up, energy going up, commodities going up and I think people are going to Bitcoin as a hedge against that."
Cruz then clarified that there is an inherent risk with Bitcoin as an investment.
"That being said, it is a new cryptocurrency. To be honest I don't understand it. I think a lot of people don't and so I would say it has upside but there's risk there."
Cruz's main concern was that inflation is becoming a larger issue in wake of the spending that has occurred due to the pandemic as well as Biden's upcoming jobs plan.
The senator's endorsement of Bitcoin on Fox News is significant due to the channel's viewer demographic. According to research done in 2020, 37% of Fox News viewers are 65 or older. Older age ranges have consistently ranked on the lower end of cryptocurrency investors or adopters. Endorsements of Bitcoin from figures like Senator Cruz on the channel could potentially lead to an increase in older investors.