Jack Dorsey, CEO of Twitter and payment solutions provider Square, is a longtime Bitcoin (BTC) fan. Described as a bitcoin maximalist – someone who would prefer bitcoin to any alternative – Dorsey only owns the forefather of crypto.
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Dorsey sees Bitcoin as the future currency of the internet
One reason Dorsey has a passion for Bitcoin is the community behind it and their consensus-based approach that reminds him of the early days of the internet. He believes in its founding principles and believes that Bitcoin has staying power.
At the B-Word conference in July, Dorsey asked, “If the Internet has a chance to get a local currency, what will it be?” He continued, “For me, Bitcoin is because of these principles, because of this creation story, because of its resilience.”
He has voiced this idea on several occasions, although he also admits that there is still much to be done. Bitcoin was the very first cryptocurrency, but slow transaction times and other issues have hampered its path to mainstream adoption.
That’s also why Dorsey is pushing Bitcoin’s Lightning Network. This is an additional layer (known as a Layer 2 solution) that sits on top of the existing blockchain and speeds up transactions and cuts costs. The billionaire entrepreneur tweeted in June that it was only a matter of time before Twitter integrated the Lightning Network.
Twitter and Bitcoin
During a conference call on the second quarter results, Dorsey emphasized the importance of Bitcoin for the future of the company. “If the internet has a local currency, a global currency, we can move forward much faster with products like Super Follows, Commerce, Subscriptions, Tip Jar, and thereby reach every single person on the planet, rather than a market-for-market-for -Market approach to pursue, “he said.
It was investors’ first look at how Bitcoin might fit into the company’s lineup. Dorsey pointed out that Twitter doesn’t see the need for global online currency alone – Facebook is working in that area too. However, unlike Facebook, which is working on introducing its own currency, Dorsey wants an open-standard project like Bitcoin to be successful.
Square and bitcoin
Square, the company behind the popular payment app Cash App, bought $ 50 million in Bitcoin in October 2020. In February of that year, it added an additional $ 170 million as part of its ongoing commitment to the currency.
However, owning bitcoin is only part of Square’s bitcoin business. Cash app customers can buy and sell Bitcoin via the app. But unlike top cryptocurrency exchanges, Cash App doesn’t offer any other crypto options. Square also plans to create a hardware wallet. The idea is to make Bitcoin custody more mainstream.
Eventually, Square is starting a new business focused on decentralized financial services (DeFi) for Bitcoin. Dorsey tweeted last month that “Square is launching a new company (along with Seller, Cash App and Tidal) that will focus on building an open developer platform with the sole goal of creating non-custody, license-free and decentralized financial services simplify. “
The department doesn’t have a name yet.
Dorsey hopes Bitcoin can create world peace
Another aspect of Bitcoin that Dorsey addresses is the ability to replace the entire foundation of what he calls the “predatory” financial industry. He considers the existing systems to be “not for today and certainly not for the future, especially when you look at the whole world”.
Because of this, he told the B-Word conference that he hopes Bitcoin could help create world peace. It may sound dramatic. But his opinion is that if people didn’t have to worry about the inequality and cost of the current system, people would have more time to focus on bigger problems.
“We have all these monopolies out of whack, and the individual has no power, and the costs and distractions our monetary system creates today are real and divert attention from the bigger issues,” he said.
All in all, Dorsey is channeling a lot of energy and business capital into Bitcoin. Time will tell if it’s the right call.