The former CEO of Twitter, Jack Dorsey, has announced a couple of plans that aim to help Bitcoin continue its run as the world’s largest cryptocurrency. These plans include the desire to build an open Bitcoin mining system as well as a legal defence fund that will protect Bitcoin developers.
The Bitcoin mining system would be created by Block Inc – the fintech company that Dorsey is the CEO of. The system will based on a kind of custom silicon and it’s expected to be open-source so that it can be accessed by businesses and individuals across the world. Furthermore the new kind of mining should mean that the whole process should be more efficient and evenly distributed.
Block was previously known as Square, and it was focused on payment systems, but has since rebranded and will be examining the future of blockchain technology. The new mining system will aim to overcome problems such as the high price of mining rigs and power consumption to make Bitcoin mining less energy-intensive and cheaper too.
Dorsey has long been an advocate of Bitcoin, and he has gone on record as expecting that the cryptocurrency would be the world’s single currency. This has been backed up by the fact that Square purchased nearly $50 million in Bitcoin in 2020.
However, Bitcoin has also experienced plenty of detractors and this is why Dorsey is establishing a legal defence fund. The fund would be used to provide legal protection for any open-source developers should they get hit with any lawsuits.
The non-profit fund would be set up in a bid to counter the growing numbers of developers who are leaving the development of Bitcoin technology as a result of continued threats of litigation. Interestingly, the fund has already sprang into action by coming into the existing defence in the Tulip Trading lawsuit – the legal matter that involves Craig Wright, the person who claims to be the investor of Bitcoin.
Bitcoin’s troubled start to 2022
Dorsey’s plans couldn’t have come at a better time for Bitcoin. The cryptocurrency has had a rough start to the new year and Bitcoin’s value has struggled to reach $45,000. This comes as a bitter blow for crypto investors who saw the price of Bitcoin reaching above $67,000 as recently as October 2021.
All of this has come at a time when investors are shying away from riskier assets like Bitcoin as a result of the threat of an interest rate rise that could come as soon as March. Plus Bitcoin has suffered from some system outages as a result of the ongoing political unrest in Kazakhstan – the world’s second most active country for Bitcoin mining.
Thankfully, there have been a few glimmers of hope for Bitcoin recently. Alongside Dorsey’s endorsement, the head of Swiss bank, Seba, forecast that the crypto would hit a new high of over $75,000 in the next year.