- Bitcoin pushes past USD 11,000 on the back of comments made by Jack Dorsey about decentralizing Twitter
- Dorsey’s Square also purchased USD 50 million of Bitcoin, the latest of corporate Bitcoin buys.
After a slump in the early week, Bitcoin now trades into the weekend having finally broken past USD 11,000 again.
Bitcoin markets took a slight dip earlier in the week when Donald Trump made an announcement that said he would delay further stimulus measures for the United States until after the November elections, dampening spirits and leading to stock markets sell offs, that then translated into a dumping on crypto assets, as Ethereum took a dive down to below USD 330 and Bitcoin tested support levels below USD 10,500.
However, Twitter and Square CEO Jack Dorsey brought back the entire crypto market into a rally yesterday when he made a USD 50 million investment into Bitcoin, as futures demands also took a big uptake.
Dorsey is a known Bitcoiner of course, so his move will not have come as a surprise to many, given that his own Square app is one of the most popular way for Americans to get into crypto and Bitcoin. However, the certainty with which he plumped USD 50 million down will surely have raised a lot of hopes and expectations from short and medium term speculators that there is more yet to come, and that even big money had hardly lost their interest in cryptocurrency.
Further, it was only last week where Dorsey was at the Oslo Freedom Forum 2020 when he insisted that Bitcoin and blockchain will help to shape the future of Twitter through a decentralized internet standard. He said:
“A lot of our value in the past was around content hosting. So we would host the tweets, the images, and videos… Blockchain and bitcoin point to a future, and point to a world, where content exists forever, where it’s permanent, where it doesn’t go away, where it exists forever on every single node that’s connected to it.”
He has already put together a team that will hire an initial five members to work as BlueSky, building such a protocol to get Twitter to transition to a decentralized platform.
Commentators viewing this “trusted system in a distrusted environment” will remember that it was only three months ago when a massive hack occurred on Twitter’s platform, in which hackers managed to hijack dozens of high-profile accounts in an effort to scam followers. Dorsey admitted:
“I fundamentally believe that security is something that can never be perfected. It’s a constant race. It’s a constant push to be ten steps ahead of hackers.”
Most of the internet is already on his side, and his Twitter accounts are filled with hundreds of responses, the majority of which are positive. It appears that he will have many who will support his revolutionary conceptualization of open and decentralized social media — but whether or not this will seek to fully transform Twitter as a mere content hoster to that of open access proponent remains to be seen.
Who's going to be the 3rd public company to hold #bitcoin in treasury?
— CZ 🔶 Binance (@cz_binance) October 8, 2020
But sentiment is certainly on the rise after Dorsey’s big move on Bitcoin. Binance CEO Changpeng Zhao himself now put a teasing question out asking “Who’s going to be the 3rd public company to hold #bitcoin in treasury?”
Public comments have thrown out all kinds of names from Tesla to Berkshire Hathaway (belonging to anti-Bitcoiner Warren Buffett) but he followed on later than assuming Dorsey had to also get buy in from his board, suggested that the Twitter CEO would have had to educate them first.
Quantum Economics founder Mati Greenspan wrote to his subscribers yesterday: “It’s a bit surreal to see gigantic corporate entities now going knee-deep in bitcoin.”
Apparently, a spreadsheet has now emerged online at BitcoinTreasuries that looks like it will help to track purchases of Bitcoin by corporations. MicroStrategy is top dog right now with over 38,000 Bitcoins worth some USD 425 million but Cypherpunk Holdings seems to be not far behind in fifth place with 263 Bitcoins worth USD 2.7 million.
Will this trigger a wave of corporate Bitcoin purchases? Time will certainly tell.
Image Courtesy: Pixabay