Square Considers Building Bitcoin Wallet After Musk’s Backlash Causes Coin Price to Plunge

Jack Dorsey, chief executive of U.S. mobile payments giant Square, said Friday that the company is considering building a hardware wallet designed specifically for bitcoin to give consumers greater control over the cryptocurrency they own.

Square Considers Building Bitcoin Wallet After Musk's Backlash Causes Coin Price to Plunge

Square shares rose about 2.7 percent after the billionaire tweeted the news on his social media account. Dorsey is the founder and chief executive of Twitter. As of Friday’s close, Twitter shares were up about 1%.

Currently, bitcoin trading has become a booming business for Square, with consumers using the company’s mobile app Cash App to make purchases and store bitcoins digitally. Square’s bitcoin revenue, statistics show, has climbed from $516.5 million in 2019 to $4.75 billion last year.

Dorsey is offering Square users a new way of storing bitcoin by which the latter’s owned bitcoin would not be controlled by Square or any other company. A bitcoin wallet would allow users to store cryptocurrencies in a secure gadget and then let them decide when to use them.

“Square is considering building a hardware wallet for Bitcoin,” Dorsey explained, “and if we do, we’ll build it completely openly, from software to hardware design, and work with the community.”

Dorsey claims that if this Bitcoin wallet is launched successfully, it may differ from existing alternatives noted.

He said, “The exchange you use to buy bitcoin may in good faith want to secure the cryptocurrency you hold. However, the reality may suggest that ‘safekeeping’ actually means ‘IOUs’. Deciding to take custody of bitcoins, and securing them, is a complicated matter.”

Dorsey talked about the way some exchanges currently operate. Take PayPal, for example, where you can buy bitcoins through the company, but the “private key” is held in PayPal’s hands. As Dorsey explained, in this way, the “private key” is more like an IOU. In addition, PayPal does not allow customers to transfer bitcoin to wallets outside the company’s ecosystem.

By creating “assisted self-care,” Dorsey said, Square could simplify the way people hold bitcoin. He said the bitcoin wallet will make it easier for customers to spend a percentage of their available bitcoins from their phones, while the rest is kept securely in the wallet.

Dorsey added that the combination with the Cash App is “obvious,” but “only part of the solution. He added that he would provide further thoughts on the product “if we ultimately decide to develop” it.

Musk’s vocalization triggers collective plunge

Unlike the erratic Elon Musk, Dorsey has been extremely bullish on the future of bitcoin.

A few months ago, Musk, who is the CEO of Tesla, was a bitcoin fanboy, splashing $1.5 billion on the world’s largest cryptocurrency by market capitalization. However, as the saying goes, “you can turn the other cheek faster than the other cheek,” the billionaire has been making frequent accusations against bitcoin, publicly accusing it of consuming too much energy and not being environmentally friendly, announcing that Tesla will no longer accept bitcoin payments, and recently tweeting a picture of a couple breaking up with emojis and adding the hashtag “#bitcoin ” hashtag.

In the tweet, Musk hinted that he no longer liked Bitcoin, a move that led to a massive sell-off in cryptocurrencies, which plummeted en masse. At one point, bitcoin fell more than 6%, the price of ethereum, the second largest cryptocurrency, fell as much as 7%, and dogcoin, which Musk is bullish on, fell more than 12%.

However, the bearish ones did not include Dorsey. In an interview on Friday, the billionaire said, “Bitcoin has changed everything. I don’t think there’s been a more important job in my life than it has been.”

Dorsey claimed, “In fact, if I didn’t work at Square or Twitter, I would be in a bitcoin-related job. If Bitcoin needed more help than Square or Twitter, I would leave both companies and move to Bitcoin. However, I believe both companies will play a role in the Bitcoin trade.”

For Dorsey, Bitcoin holds the potential to create a new financial infrastructure that is more inclusive and supportive of underserved communities. For people living in different countries, he explained, bitcoin can also prevent currency devaluation and accelerate the transfer of funds across borders.

That’s why Dorsey teamed up with music mogul Jay-Z to create the Bitcoin Endowment Fund. The tens of billions of dollars fund is dedicated to furthering the growth of bitcoin in Africa and India.

Dorsey said, “I think there’s nothing more meaningful for people around the world.”

The billionaire has always been a big proponent of bitcoin. Back in 2018, he publicly stated that everyone will be using bitcoin in the next decade or less.

However, critics take a different view, arguing that bitcoin is a speculative, volatile and high-risk investment that leaves investors vulnerable to fraud. Proponents insist that the cryptocurrency is a decentralized digital gold that is a hedge against inflation.

Dorsey believes bitcoin will become the Internet’s native currency. “The only reason Square got involved in bitcoin is for that purpose,” he said.

Data show that Square has added more than $170 million worth of bitcoin to its balance sheet between last October, when it first invested, and February of this year.

Dorsey said stated, “Whatever I can do, whatever my company can do, making bitcoin more accessible to everyone is what I want to do for the rest of my life.”

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/square-considers-building-bitcoin-wallet-after-musks-backlash-causes-coin-price-to-plunge/
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