Jack Dorsey – the CEO of both social media giant Twitter and payments company Square – says that his latter company is looking into potentially creating a simplified mining rig that he believes will help the industry get stronger.
Dorsey and Square Tackle Crypto Mining
In a tweet last week, Dorsey explained:
Square is considering building a bitcoin mining system based on custom silicon and open source for individuals and businesses worldwide. If we do this, we’d follow our hardware wallet model: build in the open in collaboration with the community.
Following the tweet, the price of bitcoin jumped to approximately $62,000 per unit, though at the time of writing, the currency has died down a bit and is trading for just over $61,000.
Still, the news is having a positive effect on the market. In follow-up messages, Dorsey explained what he felt were the biggest problems surrounding the crypto mining industry. One, he says, is that mining is only available to certain parties. He commented:
Bitcoin mining should be as easy as plugging a rig into a power source. There isn’t enough incentive today for individuals to overcome the complexity of running a miner for themselves.
In addition, he also said that mining needs to be more “distributed” and “energy efficient.” This is an argument that crypto fans have been hearing for months from the likes of industry heads like Kevin O’Leary of “Shark Tank” fame and Elon Musk, the South African entrepreneur behind ventures such as SpaceX and Tesla.
The latter decided to allow Tesla vehicles to be purchased with bitcoin earlier in the year. However, he later fell back on this announcement when he stated that bitcoin miners were not using energy efficiently, and that he couldn’t condone such use of crypto granted emissions didn’t go down.
O’Leary also stated that he would not be purchasing any more bitcoin mined in China, as the country was not known for its “green” methods of extraction.
Dorsey continued with:
The core job of a miner is to securely settle transactions without the need for trusted third parties. This is critical well after the last bitcoin is mined. The more decentralized this is, the more resilient the bitcoin network becomes.
Mining bitcoin can be a solid way of earning profit if one feels that trading coins is too risky. The mining space is slated to grow by nearly $3 billion over the next few years per market research firm Technavio.
Making Things Accessible and Energy Efficient
Square hardware lead Jesse Dorogusker stated in an interview that he has been appointed to push the mining initiative and that he will review all necessary requirements for the company to move forward. He mentioned:
We will incubate the bitcoin mining system project inside Square’s hardware team, starting with architecture, design, and prototyping of more efficient silicon, hashing algorithms, and power architectures.