Square CEO Jack Dorsey said on Friday evening that the company may enter the bitcoin mining business.
Dorsey tweeted that the company is considering a “custom, open-source silicon-based bitcoin mining system for individuals and businesses around the world.” The price of bitcoin topped $ 62,000 in the wake of Dorsey’s series of tweets, as the world’s most popular cryptocurrency hits an all-time high.
Dorsey’s goal would be to make cryptocurrency mining – the process of creating new bitcoins by solving increasingly complex computational problems – more accessible, much like Square’s original vision was to empower small businesses. and independent owners to more easily accept credit card payments. He wrote that mining bitcoin should be “as easy as plugging a platform into a power source.” Today, the bitcoin mining industry is dominated by large-scale players who can afford to buy tens of thousands of ASICs, the type of specialized equipment used to mint new coins.
The team led by Jesse Dorogusker, who is the hardware manager at Square, will begin to study the technology needed to complete this project, according to Dorsey.
“We will be incubating the Bitcoin Mining System project within Square’s hardware team, starting with the architecture, design and prototyping of more efficient silicon, hash algorithms and architectures. ‘food “, Dorogusker wrote in a tweet.
Dorogusker said Afshin Rezayee, the leader and architect of Square’s silicon team in Toronto since 2015, will lead the project, given that silicon is at the heart of this new initiative.
“Building a solid silicon core is just the start. Delivering the value we envision requires the complete stack – silicon, innovative hardware, software, manufacturing and distribution that can help us support the world, ”Dorogusker continued.
Dorogusker is also leading Square’s plan to create a crypto wallet.
Bitcoin mining should be easy, says Dorsey
Dorsey, who is also the CEO of Twitter also explained why Square is looking to enter an already crowded area.
“Mining needs to be more distributed,” Dorsey wrote in a tweet. “The more decentralized it is, the more resilient the bitcoin network becomes.”
Dorsey shared in August that he was personally embarking on the bitcoin strike, with the help of bitcoin mining service provider Compass. In his tweets on Friday evening, the CEO of Square pleaded for this kind of equal access to the mining world.
“Mining is not accessible to everyone,” Dorsey wrote. “Mining bitcoin should be as easy as plugging a platform into a power source. There aren’t enough incentives today for individuals to overcome the complexity of running a minor for themselves. “
Square’s CEO then shared his thoughts on the need to focus more on vertical integration, as well as silicon design, which he said is too concentrated among a few companies.
The boss of Square has also embarked on the energy debate surrounding bitcoin’s carbon footprint.
“Driving towards clean and efficient energy use is great for the economy, impact and scalability of bitcoin. Energy is a system level problem that requires innovation in silicon, software and integration. What are the biggest opportunities here? Dorsey continued.
Square’s announcement comes as the United States eclipses China for the first time as the world’s top destination for bitcoin miners. The United States is also rich in renewable energy sources.
Washington State is the Mecca of hydroelectric mining farms. New York produces more hydroelectric power than any other state east of the Rocky Mountains and counts its nuclear power plants toward its goal of 100% carbon-free electricity. Meanwhile, Texas’ share of renewables is increasing over time, with 20% of its electricity coming from wind in 2019. The Texas grid also continues to rapidly add more wind and solar power.
Texas also has a deregulated power grid with real-time spot pricing that allows customers to choose between electricity providers, and most importantly, its political leaders are pro-crypto. These are dream conditions for miners who want a warm welcome and cheap sources of energy.
“If you are looking to move hundreds of millions of dollars of minors out of China, you want to make sure you have geographic, political and jurisdictional stability. You also want to make sure that there are private property rights protections for them. the assets that you move, ”said Darin Feinstein, co-founder of Core Scientific.