- square is looking to get into the bitcoin mining rig business, jack dorsey said on Friday.
- The easy-to-use system would be designed for individuals and businesses around the world.
- “bitcoin mining should be as easy as plugging a rig into a power source,” said dorsey.
Square CEO Jack Dorsey said the digital payments company is looking into creating an easy-to-use bitcoin mining platform and outlined how the generally available product could help the industry.
“Square is considering building a custom, open source, silicon-based bitcoin mining system for individuals and businesses worldwide,” CEO Dorsey said in a tweet late Friday.
“if we do this, we will follow our hardware wallet model: building in the open in collaboration with the community.”
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Bitcoin price hit a six-month high of $62,000 following Dorsey’s tweet on Friday, according to data from Coindesk, taking its year-to-date gains to 114%. it last traded around $62,179 on Monday.
To mine cryptocurrency, miners use specially designed computer equipment to verify transactions in the process that creates newly minted bitcoins.
In his twitter thread, dorsey identified five problems with bitcoin mining. an era when mining is not accessible to everyone.
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“Bitcoin mining should be as easy as plugging a rig into a power source. Today, there isn’t enough incentive for people to overcome the complexity of running a miner on their own,” he said.
dorsey has previously touted bitcoin as one of the most important projects he wants to work on, saying he would step down from the helm of square and twitter if the cryptocurrency needed more help. square has about 8,000 bitcoins worth $496 million as of Monday, according to bitcoin treasuries.
Bitcoin mining needs to be more distributed and energy efficient, according to Dorsey.
“The main job of a miner is to settle transactions securely without the need for trusted third parties,” he said. “This is critical long after the last bitcoin is mined. The more decentralized, the more resilient the bitcoin network becomes.”
The environmental impact of bitcoin electricity use is a hotly debated topic. Dorsey said that innovation in silicon, software and integration will help resolve the energy debate surrounding cryptocurrency.
Square’s CEO also said that silicon design is concentrated in the hands of a few companies, which has likely reduced supply. he questioned why there weren’t more companies involved in the industry. Also at issue is the integration between the software, hardware, and distribution aspects of mining rigs.
Crypto mining is a way to get involved in the digital currency industry beyond just buying coins. Dorsey said in August that he was “testing” bitcoin mining with the help of service provider compass mining.
a bitcoin mining rig furthers square’s ambitions in crypto. In June, Dorsey said that Square was looking to create a non-custodial hardware wallet for Bitcoin, which would give owners sole control of private keys. In July, he said he was building a bitcoin-inspired financial services business.
The global crypto mining hardware market is expected to grow $2.8 billion at a CAGR of more than 7% between 2020 and 2024, according to market research firm technavio.
a team led by square hardware lead jesse dorogusker is set to review the requirements for square to take on the bitcoin mining project.
“We will incubate the bitcoin mining system project within the square hardware team, starting with the architecture, design and prototyping of silicon, hashing algorithms and more energy efficient architectures,” dorogusker said in a tweet on Friday.
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