Jack Dorsey announces that Square is considering building a BTC mining system that is expected to push Bitcoin price above $ 62,000
CEO Jack Dorsey notification that Square is considering a “custom and open source silicon-based bitcoin mining system for individuals and businesses around the world”. Bitcoin price soared over $ 62,000 after Dorsey’s tweet series.
Dorsey’s goal is to make cryptocurrency mining – the process of creating new bitcoins by solving increasingly complex computing problems – more accessible, much like how Square’s original vision was to help developers. It’s easier for small businesses and independent owners to pay by credit card.
Dorsey wrote that Bitcoin mining was “as easy as turning on the miner”. Today, the Bitcoin mining industry is dominated by large corporations who can afford to buy tens of thousands of ASIC machines, the special type of equipment used to mint new coins.
The research team, led by Jesse Dorogusker, Chief Hardware Officer at Square, will begin work on the technology required to carry out this project, according to Dorsey.
“We’re going to embed the Bitcoin mining system project in Square hardware, starting with the architecture, design and prototyping of silicon, hashing algorithms and a more energy-efficient architecture.”
Dorogusker says Afshin Rezayee, architect and leader of Square’s silicon team in Toronto since 2015, will lead the project as silicon is at the heart of this new initiative.
“Building a strong core out of silicon is just the beginning. Deliver the value we want to fully claim – innovative silicon, hardware, software, manufacturing and distribution that can help us serve the world. “
Dorogusker is also leading Square’s crypto wallet construction project.
Bitcoin mining is getting easier
Jack Dorsey – CEO of Square
Dorsey also gave her thoughts on why Square wanted to step into an already crowded field.
“The mining industry needs to be more distributed. The more decentralized this is, the more resilient the Bitcoin network becomes. “
Dorsey announced in August that he was personally mining Bitcoin with the help of the Bitcoin mining service provider Compass. In his tweets yesterday (October 15), Dorsey advocated this kind of equal access in the mining world.
“Not everyone can mine. Mining Bitcoin will be as easy as turning on the miner. Nowadays there are not enough incentives for individuals to manage the complexities of running a mining equipment for themselves. “
Dorsey went on to share his thoughts on the need to focus more on vertical integration as well as silicon design, which he believes is too much of a focus in some companies.
The CEO also joined the debate on Bitcoin mining’s carbon footprint.
“The transition to clean and efficient energy is great for the economy, impact and scalability of Bitcoin. Energy is a system-level problem that requires innovations in silicon, software and integration. “
Square’s announcement comes as the United States overtakes China for the first time as the world’s leading destination for bitcoin miners. The United States is also inundated with renewable energy sources.
Washington State is a mecca for hydraulic mining operations. New York produces more hydropower than any other state east of the Rocky Mountains and has nuclear power plants as its goal of 100% carbon-free electricity. Meanwhile, Texas’s share of renewable energy is growing over time, with 20% of its electricity coming from wind power in 2019. The Texas grid continues to rapidly add more wind and solar power.
Texas also has a deregulated power grid with real-time spot prices so customers can choose between electricity providers and, most importantly, its political leaders who are crypto advocates. These are dream conditions for miners.
“If you want to get hundreds of millions of dollars of mining companies out of China, you want geographic, political, and legal stability. You also want to make sure that private property protection is in place for the assets you are moving, ”said Darin Feinstein, co-founder of Core Scientific.