- Jack Dorsey’s love letter to bitcoin fans isn’t the ‘poetry’ that everyone thinks it is.
- The Twitter CEO’s Square Cash app stands to benefit more than the average cryptocurrency user.
- Bitcoin’s ridiculously high transaction fees make it an implausible candidate for an everyday global currency.
According to Twitter CEO Jack Dorsey, bitcoin is poised to become the native currency in a new global internet-based economy.
But Dorsey’s latest love letter to bitcoin on a recent episode of the Lex Fridman podcast suggests he only has his own best interests at heart. And specifically, those of his Square Cash app.
Twitter CEO’s Love Letter to Bitcoin
Jack Dorsey recently described the bitcoin whitepaper as “poetry.” The Twitter CEO joined AI researcher Lex Fridman’s podcast on April 24 to discuss cryptocurrency, and his company, Square Inc.
When asked how his Square Cash app could help plug people into the global economy as consumers and merchants, Dorsey said the currency used would be key.
I believe the currency we use is a huge part of the answer. And I believe that the internet deserves and requires a native currency, and that’s why I’m such a huge believer in bitcoin.
Facebook’s Libra venture failed to get off the ground when it ran into the roadblocks of many national financial regulations. Dorsey appears to have learned from Libra’s failure and sees bitcoin as a way of circumventing those same national regulatory hurdles.
Our biggest problem as a company right now is that we cannot act like an internet company. To open a new market we have to have a partnership with a local bank. We have to pay attention to different regulatory onboarding requirements.
Dorsey suggests dodging those requirements with bitcoin can expose Square to hundreds of new markets across the world.
By using bitcoin in conjunction with the Cash app, Dorsey can effectively pick up the Libra baton and help construct a global internet currency.
A digital currency like bitcoin takes a bunch of that away, where we can potentially launch a product in every single market around the world – because they’re all using the same currency.
Dorsey has previously stated he has no intention of adding any other cryptocurrencies to Square’s Cash app. It’s bitcoin all the way.
Now, that might be a problem for around 99% of the world’s population, given that bitcoin’s fees make it utterly useless as an everyday currency.
Bitcoin Can’t Function as the World Currency Dorsey Imagines
As recently as April 30, the average transaction fee on the Bitcoin network was as high as $2.94. Data from Bitinfocharts show the steep increase in bitcoin’s fees towards the end of April. Following a slight decrease, the average fee at the time of writing is $2.84.