As the price of bitcoin (BTC) is struggling with downward pressure, digital currency bulls like billionaire Jack Dorsey, co-founder of Twitter (TWTR) and Square (SQ), appear optimistic over its future fundamentals. He recently pledged to spend his entire life in making bitcoin accessible to everyone, and sees it as the native internet currency. Dorsey, who has a net worth of around $12.1 billion, says he would leave both his companies for bitcoin if needed.
“If I were not at Square or Twitter, I would be working on bitcoin. If [bitcoin] needed more help than Square or Twitter, I would leave them for bitcoin. But, I believe both companies have a role to play,” he said in a bitcoin 2021 Miami conference where he was accompanied by Microstrategy CEO Michael Saylor, Tony Hawk and Floyd Mayweather Jr.
The price of the most valuable cryptocurrency pulled back to $31K on Tuesday after trading around $38K in the last two weeks. BTC price had hit an all-time high of $63K in April. The surprise selloff is at least partly blamed on regulatory and environmental uncertainty.
Why Does Jack Dorsey Want to Sacrifice Everything for Bitcoin?
Despite the substantial level of price volatility, Jack Dorsey has a strong faith that bitcoin will completely change everything in the future, with the potential to develop a more inclusive and supportive financial infrastructure for underserved communities in Africa or India.
"Go to Nigeria for one day and see the struggle that people have to put up with, with their government and with their money. Go to Ghana that has a bunch of transplants from all over the continent and you witness the same thing every single day. Go to India and you'll see the same," he said.
Dorsey also sees bitcoin as the best way to hedge against inflation and currency devaluation. In the past couple of quarters, he had added millions of dollars worth of bitcoin’s to the balance sheet of his payment technology company Square. Furthermore, Square has been offering a range of bitcoin services to its users. “Whatever I can do, whatever my companies can do to make [bitcoin] more accessible to everyone is how I’m going to spend the rest of my life,” he said.
Jack Dorsey’s Square Plans to Launch a Hardware Wallet for Bitcoin
Last week, Square founder Jack Dorsey announced the launch of a hardware bitcoin wallet, a step that will further improve bitcoin adoption by offering consumers greater control over their crypto.
Currently, the company only permits users to buy bitcoin through its Cash App and store it in a digital wallet. Fortunately, Square’s cryptocurrency business has been generating substantial revenue growth in the last few quarters, thanks to booming crypto volumes and accelerating adoption rate. Its bitcoin revenue came in at $4.75 billion last year, with expectations for further growth this year. He further explained that Square's product will be different from other alternatives: “The exchange you used to buy your bitcoin probably attends to your security with good intent, but circumstances may reveal ‘custody’ actually means ‘IOU.’ Deciding to take custody, and security, of your bitcoin, is complicated.”
Other Big Names are Echoing Jack Dorsey Stance
Microstrategy CEO Michael Saylor, who also joined Jack Dorsey at the bitcoin conference, believes that bitcoin will become the most powerful currency in the future.
"When I discovered bitcoin I thought this is digital gold on a big tech monetary network and it's going to grow by a factor of a hundred. Then I thought, well, I should buy as much as I can ... I was buying it and I was thinking I have to buy as much as I can, as fast as I can or someone will figure this out and I won't be able to," Michael Saylor said.
He recently tweeted that his public company added more bitcoins to its balance sheet during the latest price crash, bringing total bitcoin holdings to 92,079.
Meanwhile, Mike Novogratz, a crypto investing pioneer and former hedge fund manager, has been investing billions of dollars in crypto markets. His Galaxy Digital (BRPHF), an asset management firm that operates in the digital asset, cryptocurrency, and blockchain technology, recently bought custody giant BitGo for $1.2 billion. He believes the involvement of institutional investors and the potential launch of ETFs would be the biggest catalysts for the price hike.
“The big wealth in America is 50- to 80-year-olds, typically working through RIAs, registered investment advisors. They're slower to buy in — that trend has started — the ETF just makes it easier,” he said. “And so yes, if we had an ETF tomorrow, the price would go higher,” he asserted.
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