In a tweet that came from the CEO, he said that the company is looking into a bitcoin mining system. After the tweet hit the net, the price of Bitcoin rose over $62,000, and it keeps moving to its all-time high price.
What is Dorsey’s Goal?
It is thought that the goal of Dorsey would be to make the mining of crypto more accessible. At a basic level, crypto mining is the process of creating more coins by solving mathematic problems that grow increasingly more complex as one mines.
This isn’t something new to Dorsey, who created Square as a way to make it easier for small businesses and independent contractors to allow their customers to pay by credit card. Dorsey’s later tweets explained that he believed Bitcoin mining should be “as easy as plugging a rig into a power source.”
These days, Bitcoin mining is mostly done on a large scale with people and companies that can afford to buy thousands and thousands of ASICs, which are necessary to mine a single coin.
How is Dorsey Going to Look Into This?
Dorsey further elaborated on what his plan was. First, he has created a team to start looking at the tech required to take on this project. It will be lead by Jesse Dorogusker, who also tweeted out some new information.
The hardware lead at Square, Dorogusker wrote:
“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.”
Afshin Rezayee, a Toronto-based Square employee, will take the lead on this project.
Dorogusker went on —
“Building a strong core in silicon is just a start. Delivering the value we imagine requires the full stack – silicon, hardware, software, manufacturing, and innovative distribution that can help us support the whole world.”
Why is Dorsey Making This Decision?
Dorsey also stated that he believes that Bitcoin mining should be more distributed, and that the more decentralized it is, the more resilient the network will become.
If you follow Dorsey, this is probably no surprise, as he stated back in August that the was getting into the Bitcoin mining industry himself with the help of Compass, a Bitcoin mining service provider.
He said this:
“Mining isn’t accessible to everyone. 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.”
…then he went into several tweets explaining his thoughts on silicon design, which he also believes should be spread out.
What about Bitcoin’s carbon footprint? Dorsey weighed in on that, too:
“Driving towards clean and efficient energy use is great for bitcoin’s economics, impact, and scalability. Energy is a system-level problem that requires innovation in silicon, software, and integration. What are the largest opportunities here?”
The timing of this announcement from Dorsey is interesting, as for the first time ever, the US has surpassed China as the top destination in the world. Several states have emerged as leaders in the industry including Washington state, which has several hydro powered crypto mining farms and New York, which produces the most hydroelectric power than any other state in the eastern part of the country.
Texas is also stepping into the game with more renewable energy sources than ever before. In fact, in 2019, 20% of the power created in Texas has come from wind farms, and Texas is also rapidly moving to creating more ways of harvesting solar and wind power. With all of this power available here in the states from renewable resources, it’s no surprise that people from China are coming in droves to take advantage of it.
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