Jack Dorsey, CEO of Square and Twitter. Lucas Jackson/Reuters
Jack Dorsey, a Friday statement from Square, said that Square is interested in getting into the bitcoin mining rig business.
This system is easy to use and would be suitable for both individuals and businesses all over the globe.
Dorsey stated that bitcoin mining should be as simple as plugging your rig into a power supply.
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Square CEO Jack Dorsey stated that the company is considering whether to make a simple-to use bitcoin mining rig. He also explained how the product could benefit the industry.
"Square is looking into building a Bitcoin mining system that uses custom silicon and open-source for individuals and businesses around the world," CEO Dorsey stated in a tweet late Friday.
"If this happens, we would follow our hardware wallet model of open-source development in collaboration with the community."
According to CoinDesk data, Bitcoin's price reached $62,000 for six months after Dorsey's tweet Friday. This brings its year-to date gains to 114%. The price was at $62,179 as of Monday.
Miners use special-designed equipment to verify transactions and create new-minted bitcoins.
Dorsey highlighted five problems in bitcoin mining in a Twitter thread. One was that mining isn't accessible to all.
"Bitcoin mining should not be more complicated than plugging in a rig to a power source. He said that there is not enough incentive for people to run a miner themselves.
Dorsey previously referred to bitcoin as the most important project he wanted to work on. He said that he would quit Square and Twitter if it needed more support. According to Bitcoin Treasuries, Square had approximately 8,000 bitcoins valued at $496 million as of Monday.
According to Dorsey, Bitcoin mining must be more distributed and more energy-efficient.
He stated that the core task of a miner was to secure settle transactions without the use of trusted third parties. This is crucial long after the last bitcoin has been mined. Decentralization is key to the resilience of the bitcoin network.
It is hotly debated about the environmental consequences of bitcoin's electricity use. Dorsey stated that innovation in silicon, software and integration will resolve the energy controversy surrounding bitcoin.
Square CEO said that silicon design has become concentrated in the hands a handful of companies, which likely has reduced supply. He wondered why not more companies were involved in the sector. The integration of the software, hardware, and distribution aspects for mining rigs is also at issue.
Beyond buying coins, crypto mining is another way to get involved in the digital currency market. Dorsey stated in August that he was "trying” bitcoin mining with the assistance of Compass Mining.
Square's crypto ambitions are further boosted by a bitcoin mining rig. Square is looking to create a non-custodial bitcoin wallet. This would allow owners to have sole control over their private keys. Dorsey stated that Square had made this announcement in June. He stated that Square was working on a bitcoin-inspired business in financial services.
According to Technavio, the global crypto mining hardware market will grow at an annual compound rate of more than 7% between 2020-2024.
Jesse Dorogusker (square's hardware lead) is leading a team that will review the requirements to allow Square to accept the bitcoin mining project.
Dorogusker stated in a tweet that "We will incubate bitcoin mining system project within Square's hardware group, starting architecture, design and prototyping more efficient silicon and hashing algorithms and power architectures."
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