Jack Dorsey, CEO of Twitter and payment solutions provider Square, is a long-time fan of Bitcoin (BTC). Described as a Bitcoin maximalist – someone who would choose Bitcoin over other alternatives – Dorsey only owns the crypto grandfather.
One Email a Day Could Save You Thousands
Expert tips and tricks delivered straight to your inbox that could help save you thousands of dollars. Register now for free access to our Personal Finance Boot Camp.
By submitting your email address, you consent to our sending you money advice as well as products and services which we believe may be of interest to you. You can unsubscribe anytime. Please read our privacy statement and terms and conditions.
Dorsey sees Bitcoin as the future internet currency
One of the reasons Dorsey is passionate about Bitcoin is the community that supports him and his consensus-driven approach, which reminds him of the early days of the internet. He believes in his founding principles and believes that Bitcoin has the power to stay.
Speaking at The B Word conference in July, Dorsey asked, “If the internet is lucky enough to get a native currency, what will it be?” He continued, “For me, it’s Bitcoin because of these principles, because of this creation story, because of its resilience.”
This is an idea he has expressed on several occasions, although he also admits that there is work to be done. Bitcoin was the very first cryptocurrency, but slow transactions and other issues hampered its path to mainstream adoption.
This is also why Dorsey is pushing Bitcoin’s Lightning network. This is an additional layer (called a layer 2 solution) that adds to the existing blockchain and speeds up transactions and reduces costs. The billionaire entrepreneur tweeted in June that it was only a matter of time before Twitter entered the Lightning Network.
Twitter and Bitcoin
During a second quarter earnings call, Dorsey highlighted the importance of Bitcoin to the future of the business. âIf the internet has a native currency, a global currency, we can scale much faster with products like Super Follows, Commerce, Subscriptions, Tip Jar, and we can reach every person on the planet because of that. , instead of adopting a market-by-market-by-market approach, âhe said.
It was investors’ first glimpse of how Bitcoin might fit into the company’s lineup. Dorsey pointed out that Twitter isn’t alone in seeing the need for a global online currency – Facebook is working in this space as well. However, unlike Facebook, which is working on launching its own currency, Dorsey wants to see an open standard project like Bitcoin succeed.
Square and Bitcoin
Square, the company behind the popular Cash App payment app, purchased $ 50 million worth of Bitcoin in October 2020. It added an additional $ 170 million in February this year, as part of its pledge. continuous towards the currency.
But owning Bitcoin is only part of Square’s Bitcoin business. Cash App customers can buy and sell Bitcoins on the app. But unlike the major cryptocurrency exchanges, Cash App doesn’t offer any other crypto choice. Square also plans to create a hardware wallet. The idea is to make bitcoin custody more common.
Finally, Square is creating a new company focused on decentralized finance (DeFi) services for Bitcoin. Dorsey tweeted last month that “Square is building a new business (joining Seller, Cash App, and Tidal) focused on building an open development platform with the sole purpose of making it easier to build non-custodial financial services, without authorization and decentralized. “
The division does not yet have a name.
Dorsey hopes Bitcoin can create world peace
Another aspect of Bitcoin that appeals to Dorsey is the possibility of replacing the entire base of what he describes as a “predatory” financial industry. He believes that existing systems “are irrelevant for today, and they are certainly irrelevant for the future, especially considering the whole world.”
That’s why he told The B Word conference that he hoped Bitcoin could help create world peace. It may sound dramatic. But his thinking is that if people didn’t have to worry about the inequality and cost of the current system, they would have more time to focus on bigger issues.
“We all have these imbalanced monopolies, and the individual has no power, and the amount of costs and distractions that flow from our monetary system today is real and distracts attention from bigger issues,” he said. he declared.
All in all, Dorsey is funneling a lot of energy and trading capital into Bitcoin. Time will tell if this is the right call.