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Billionaire Jack Dorsey says he wants to begin mining Bitcoin as he moves from public declaration of support to director production of the king coin.
Jack Dorsey is trying his hand at Bitcoin mining. The Twitter and Square CEO tweeted on Tuesday that he is “trying Bitcoin mining with @compass_mining”.
I’m trying mining with @compass_mining too…
— jack (@jack) August 17, 2021
Dorsey is a known devotee of the major digital currency and is extremely bullish on its future. His financial services and digital payments company, Square, bought $170 million worth of Bitcoin in February after prices dropped below $46,000
Bitcoin mining is not feasible for everyone due to the capital and energy-intensive requirements. This is why Dorsey is entering the Bitcoin mining sector through an enabling service.
Compass Mining is a Bitcoin mining service that enables clients to mine the token without triggering a taxable event. Basically, what it does is provide individual miners with a hosting facility in addition to operating their hardware for them. This way, miners do not have to worry about the purchase and maintenance of mining equipment. Mining equipment cost at Compass Mining starts at $8,200, and according to the company’s website data, Compass miners earn about $33 in daily profits.
The ‘mining’ process of Bitcoin involves a proof of work (PoW) model where miners compete to solve complex puzzles for transaction validation. This process is very intensive and energy-consuming on computer hardware. In addition, the requisite computers and other important components for the process are quite expensive.
Furthermore, the subject of Bitcoin mining as it pertains to the environment is a polarizing one. While some argue for Bitcoin, others complain about the energy requirement and its negative environmental impact. Mining gives Bitcoin enthusiasts an in-depth perspective on the digital coin beyond just trading it on exchanges. In addition, it also presents the opportunity to increase earning power since Bitcoin has the highest market value of all tokens.
Jack Dorsey Believed in Bitcoin Long Before Mining Intentions
There are several other known instances where Jack Dorsey declared support for Bitcoin. For instance, at ‘The B-Word’ conference in July, an event hosted by the Crypto Council for Innovation, Dorsey listed a few reasons why he favored the asset. He stated that the major digital currency had a strong community backbone, was a model native currency for the internet, and could support underserved communities. The technology entrepreneur further stated that he hopes Bitcoin will “help bring about world peace”.
Speaking at the Bitcoin 2021 Conference in June, Dorsey also stated that Bitcoin is a way to protect against currency devaluation and speed up the transfer of funds across borders. He believes the crypto is worth investing in and also worth his time because of the limitless potential it holds. In the Twitter CEO’s own words,
“Bitcoin changes absolutely everything, I don’t think there is anything more important in my lifetime to work on”.
He further predicted that the most popular crypto would eventually become the world’s single currency within a decade. As of today, Bitcoin is changing hands at around $44,463 and has a market value of over $840 billion.