Department of Justice (DOJ) federal prosecutors from the Southern District of New York are investigating fintech company Block, formerly known as Square, for significant compliance failures in its transaction monitoring systems after a former employee revealed lapses that included processing transactions with sanctioned nations and groups linked to terrorism. Allegations against Block include handling transactions […]
Bitcoin News
Jack Dorsey’s Block Targets Chip Advancement With 3nm Bitcoin ASIC Mining Rig
On Tuesday, Jack Dorsey, the founder of Block, took to X to announce that the company is “building a mining rig.” Dorsey also shared a blog post authored by Block’s lead for mining hardware products, Naoise Irwin. The post revealed enhancements in the chip design, upgrading from the initially planned 5-nanometer (nm) process to an […]
Bitcoin News
Jack Dorsey’s Block Launches Bitkey: A New Self-Custody Bitcoin Wallet With No Seed Phrases
Block, Inc. has recently introduced Bitkey, its innovative self-custody bitcoin wallet, offering a unique approach to bitcoin management. Unlike traditional wallets which rely on passwords or seed phrases, Bitkey utilizes a distinctive 2-of-3 multi-signature mechanism for recovery.
Bitkey Wallet Approach Ditches Traditional Seed Phrases
Bitkey, conceived and built by Block, Inc. (formerly Square, Inc.), is a new bitcoin (BTC) wallet that encompasses a mobile app, a hardware device, and a suite of recovery tools. The non-custodial aspect of Bitkey’s design is different as it eliminates the traditional reliance on seed phrases. Instead, the wallet employs a 2-of-3 multi-signature scheme where the user is provided with two keys: one integrated within the mobile app for everyday transactions and another stored in a separate hardware device for additional security. The third key, held by Bitkey, serves as a recovery mechanism.
“People holding bitcoin on exchanges and custodial platforms today are often hesitant to move to self-custody wallets because they are nervous about making mistakes, especially with the historical requirement that you must safely guard 12 or 24-word long passwords called ‘seed phrases,’” Lindsey Grossman, the Business Lead for Bitkey said. “People have often felt stuck: worried about the lack of control they might experience on a custodial platform or exchange, yet also anxious about the unforgiving product experiences that exist in other self-custody wallets historically available.”
Grossman added:
With Bitkey, we wanted to build a product that helps bring everyone to self-custody, combining robust security and recovery options, with a simple customer experience that puts them in control of their money.
Block and Bitkey are not alone in shifting from the conventional seed phrase approach. Binance recently unveiled a self-custody Web3 wallet that utilizes a shared key system. Similarly, Ledger, a prominent hardware wallet maker, has rolled out a shared key shard system for recovery. Although Bitkey retains the third key for the cryptocurrency owner, the company emphasizes its inability to access the funds without the other two keys.
“A third key is on Bitkey’s server and is used for only two things: to help customers move bitcoin with just their phone for the transactions they choose to make on the go without their hardware device, and to help customers recover their wallet if they lose their phone or hardware – or even both,” Bitkey’s announcement details. “Importantly, because Bitkey only has access to one, not two or three keys in this 2-of-3 multi-signature wallet, Bitkey cannot access or move a customer’s bitcoin without them.”
What do you think about the Bitkey wallet? What do you think about wallets moving away from traditional seed phrase methods? Share your thoughts and opinions about this subject in the comments section below.
Jack Dorsey’s Block To Democratize Bitcoin Mining With Open Source Mining System
Block, formerly known as Square, is working on an open-source bitcoin mining system, according to CEO Jack Dorsey. He referenced a more detailed thread on the project’s objectives by the company’s general manager for hardware, Thomas Templeton.
We’re officially building an open bitcoin mining system https://t.co/PaNc7gXS48
— jack (@jack) January 13, 2022
Block Is Working On Bitcoin Mining
Thomas Templeton, Block’s general manager for hardware, set out the company’s next moves in a series of tweets.
“From buying, to set up, to maintenance, to mining,” Templeton said, the goal is to make bitcoin mining — the process of creating new bitcoins by solving increasingly hard computing tasks — more dispersed and efficient in every aspect.
According to Templeton, making the mining process more accessible is about more than just creating more bitcoin.
Templeton wrote:
“We want to make mining more distributed and efficient in every way, from buying, to set up, to maintenance, to mining. We’re interested because mining goes far beyond creating new bitcoin. We see it as a long-term need for a future that is fully decentralized and permissionless.”
The initiative is focused in combining performance and open-source design in a “elegant system integration,” according to Templeton. The company is looking for technologies and partnerships that could help the idea, which is currently being developed by Block’s hardware team. Afshin Rezayee is leading a dedicated team of engineers to the endeavor, and available positions include electrical engineers, software and analog designers, ASIC engineers, and layout engineers.
BTC Market cap down from last year’s ATH. Source: TradingView
The bitcoin mining system developed by Block aims to improve three areas of bitcoin mining: availability, reliability, and performance. The goal is to make mining rigs easier to identify and buy, while also providing a consistent delivery experience; improve dependability by designing something that can better dissipate heat and dust; and boost performance while consuming less power.
“Common issues we’ve heard with current systems are around heat dissipation and dust. They also become non-functional almost every day, which requires a time-consuming reboot. We want to build something that just works,” Templeton tweeted. “They’re also very noisy, which makes them too loud for home use.”
Related article | Is Norton 360 Mining Ethereum In Your Computer? If It Is, They’ll Take a 15% Cut
Dorsey Wants To Democratize BTC Mining
The mission statement of this project includes democratizing bitcoin mining access.
Dorsey wrote in October:
“Mining isn’t accessible to everyone. Bitcoin mining should be as easy as plugging a rig into a power source. There isn’t enough incentive today for individuals to overcome the complexity of running a miner for themselves.”
The news corresponds to Dorsey’s announcements from 2021. Dorsey tweeted,
Square is considering building a Bitcoin mining system based on custom silicon and open source for individuals and businesses worldwide. If we do this, we’d follow our hardware wallet model: build in the open in collaboration with the community. First some thoughts and questions.
— jack (@jack) October 15, 2021
Block’s news comes only months after the United States overtook China as the world’s top bitcoin mining destination for the first time. Renewable energy sources abound in the United States.
Hydropower mining farms flourish in Washington State. New York generates more hydroelectric power than any other state east of the Rocky Mountains, and its nuclear power plants contribute to the state’s objective of zero carbon electricity. Meanwhile, Texas’ renewable energy contribution is increasing over time, with wind power accounting for 20% of the state’s power in 2019. In addition, the Texas grid continues to add more wind and solar power at a rapid pace.
Block hasn’t given a specific date for when its bitcoin mining system would be available for purchase and use, since the company is still in the research phase of development. Templeton also encouraged members of the public to contact him if they had any concerns or suggestions for improving the initiative.
Related article | More Green Energy: Crypto Mining Saves A Hydro Power Plant In Costa Rica
Spiral BTC Releases Lightning Development Kit. Jack Dorsey’s Puppet Promotes It
The Lightning Development Kit is Spiral BTC’s latest offering to the community. And to the world. The LDK is “The simplest way to integrate Lightning into your Bitcoin wallet.” It’s free to use and it contains building blocks that anyone can integrate with their product. The big news, however, is Jack Dorsey’s puppet. The company, Spiral BTC, released this video to promote the Lightning Development Kit’s release. And Jack Dorsey’s puppet stars in it.
Is it hilarious or cringe? Opinions vary. One thing’s for sure, however, it captured the mase’s attention and got eyeballs on the Lightning Development Kit project. So, it definitely worked as a marketing tool and the Bitcoin community should cherish it. Even though the Spiral team says that the main layer is too slow, “sucks,” and it’s “painful to use.” Nothing could be further from the truth, layer one does perfectly what it needs to do. If you want speed and ease of use, just go up to layer two. That’s where the LDK lives.
Related Reading | Jack Dorsey: Square Could Build Bitcoin Mining System
What’s The Lightning Development Kit?
The project’s documentation defines it as:
“Lightning Development Kit (LDK) is a generic library which allows you to build a Lightning node without needing to worry about getting all of the Lightning state machine, routing, and on-chain punishment code (and other chain interactions) exactly correct. LDK tends to be suitable for use cases where a degree of customization is desired, e.g. your own chain sync, your own key management and/or your own storage/backup logic.”
On the Lightning Development Kit’s introductory page, they promise the product was “designed from the ground up to be easily customized to your application needs.” Also, “as lightweight as you need it to be and optimized to run on all embedded devices such as mobile phones, IoT devices, PoS terminals and more.” Also, and this is very important, the use the Muun approach and help you create a single wallet experience. What does this mean?
“No need to create separate Bitcoin & Lightning wallets, forcing users to backup an additional recovery phrase. Instead, we let you define your own wallet and create one unified experience.”
What’s Spiral BTC And What Else Do They Do?
The company used to be called Square Crypto. When Jack Dorsey abandoned Twitter to focus on other ventures, it change its name to Spiral BTC. The aim was to convey better what their mission is all about. “Bitcoin is the best money. It should be used like it. We build and fund free, open-source projects aimed at making bitcoin the planet’s preferred currency.” When all of this happened, our sister site Bitcoinist gave us the 411:
“The year is almost at its close and as such companies have begun to make plans for the coming year. For Spiral, the year 2022 will be a year of expansion as it will be working on a number of projects in the new year. To do this, Spiral (formerly Square Crypto) plans to double the number of full-time developers in the coming year.
Some of the projects the devs will be working on include the Lightning Development Kit (LDK), the Bitcoin Development Kit (BDK), the grant program, and the Bitcoin Design Guide and Community.“
That’s right, they sponsor the fantastic Bitcoin Design Guide and already released a Bitcoin Development Kit for those who wish to build on layer one. They also give grants to Bitcoin developers, designers, and great projects like BTCPay Server, Lightning Signer, The Eye of Satoshi, and the widely used Mempool.
BTC price chart for 12/07/2021 on Gemini | Source: BTC/USD on TradingView.com
Other Jack-Dorsey-Led Bitcoin Projects
As soon as the rumor of Jack Dorsey leaving Twitter hit… well… Twitter, Bitcoinist ran a piece that praised his contributions to the space and speculated on what he would do next:
“The allegedly soon-to-be former Twitter CEO is perhaps best compared to Hal Finney in terms of the positive impact he has had on the cryptocurrency ecosystem. Both of have famously tweeted about “Running Bitcoin,” and both are now names nearly as synonymous with the top ranked crypto asset as Satoshi Nakamoto themselves.
Finney’s legacy has sadly ended, but could Dorsey’s truly just be at the very beginning in terms of what the business entrepreneur could bring to the overall Bitcoin ecosystem?”
Related Reading | Is Hyperinflation Inevitable? Jack Dorsey Says It’ll “Change Everything”
Before that, Jack Dorsey’s other Bitcoin-focused company TBD announced its first big project. The tbDEX will be a decentralized exchange and liquidity protocol. When the company released the whitepaper, NewsBTC reported on it and described the project as:
“The tbDEX aims “to build bridges between the fiat and cryptocurrency worlds,” that much is clear. We still live in a Fiat world and, if Bitcoin is going to succeed, we need new, simpler, and cheaper ways to interact with said world. “There are serious challenges to realizing this vision. Fiat rails are regulated, and no interface with either the traditional monetary system or “real world” can be completely trustless.”
At the Bitcoin 2021 Conference, Jack Dorsey said “Bitcoin changes absolutely everything. I don’t think there is anything more important in my lifetime to work on”. And now, he’s laser-focused on it. Things are moving fast since he left Twitter. It wouldn’t surprise us if the tbDEX releases a working version soon. They didn’t announce any timeline, though. Only one thing’s for sure. When the decentralized exchange is ready for the world to see, TBD should use Jack Dorsey’s puppet to promote it.
Feature Image: Screenshot from the promotional video | Charts by TradingView
NewsBTC
Jack Dorsey’s TBD Presents Whitepaper For Decentralized Bitcoin Exchange
The first product of the Bitcoin-focused TBD will be tbDEX. A decentralized exchange that they deem “A Liquidity Protocol” in the recently released whitepaper. The Bitcoin network is permissionless, anyone with an Internet connection can jump in at any time. However, the Fiat world we live in is not. The banking system has endless requirements for participation, and those leave a high percentage of the population bankless and vulnerable. “We believe that the economy should be inclusive. We need to build on-ramps to this future where everyone can access and participate in the economy,” says TBD in the post that announces tbDEX.
Related Reading | Jack Dorsey: Square Could Build Bitcoin Mining System
A subsidiary of Jack Dorsey’s Square, they created TBD “with the sole goal of making it easy to create non-custodial, permissionless, and decentralized financial services” for Bitcoin. And now, they have a plan.
What Is TBD ‘s Value Proposition?
The tbDEX aims “to build bridges between the fiat and cryptocurrency worlds,” that much is clear. We still live in a Fiat world and, if Bitcoin is going to succeed, we need new, simpler, and cheaper ways to interact with said world. “There are serious challenges to realizing this vision. Fiat rails are regulated, and no interface with either the traditional monetary system or “real world” can be completely trustless.”
So, what solution does TBD proposes? The tbDEX will allow participants to interact and transact with each other like Bisq and similar projects. However, TBD will also let users “mutually and voluntarily rely on trusted third-parties to vouch for the counterparty.” In the whitepaper itself, TBD contemplates that Participating Financial Institutions or PFIs will be part of the network.
“PFIs can be, but are not limited to, fintech companies, regional banks, large institutional banks, or other financial institutions; PFIs have access to fiat payment systems and the ability to facilitate fiat payments in exchange for tokenized cryptocurrency assets or vice versa.”
The tbDEX will provide financial institutions with tools for KYC and AML procedures:
“The protocol will also carry the required regulatory-clearing information required by PFIs to conduct their AML and KYC checks before they provision liquidity to the wallet owner. However, the necessary information may vary based on the jurisdiction.”
Wait a minute… a decentralized exchange that requires KYC? What would be the point of that? Well, the protocol doesn’t require KYC procedures, but some institutions might. The good news is, participants don’t have to deal with those institutions if they don’t want to. They can just interact with each other and establish trust in other ways.
BTC price chart for 11/20/2021 on FX | Source: BTC/USD on TradingView.com
The Cost Of Anonymity
This is where it gets interesting. According to the whitepaper:
“The tbDEX protocol facilitates decentralized networks of exchange between assets by providing a framework for establishing social trust, utilizing decentralized identity (DID) and verifiable credentials (VCs) to establish the provenance of identity in the real world.”
It’s important to notice that “the protocol itself neither collects nor records any personally identifiable information.” However, if a participant wants anonymity it’s his or her responsibility to optimize for it. Once again, the whitepaper:
“Our goal is not to maintain anonymity of transactions at all costs. Nor is it to undermine an individual’s ability to optimize for anonymity. Nothing in principle precludes anonymous transactions for financial privacy on the tbDEX network. A PFI could, in principle, require no VCs, but such transactions would represent a high degree of risk to the counterparties.”
To assume that risk costs money. It’s as simple as that. The announcement post puts it nicely.
“Transaction costs are ultimately driven by risk. At maximum anonymity, transaction costs will necessarily be higher; at maximum disclosure, they should be lower. This approach to price discovery allows the marketplace to find the right balance.”
Related Reading | Is Hyperinflation Inevitable? Jack Dorsey Says It’ll “Change Everything”
If You Have A Suggestion, Send It To TBD
The whitepaper is a rough outline of that tbDEX will eventually be.
“This initial draft of the whitepaper is meant to establish a conceptual understanding of the high-level design of the proposed tbDEX protocol. It should not be considered complete or final. It represents a proposed design for public comment.”
If you have any suggestions, contact TBD via Twitter or send them a pull request on GitHub.
Featured Image: tbDEX diagram from the whitepaper | Charts by TradingView
NewsBTC
Revisiting Dorsey’s Hyperinflation Tweet: Elon, Wood, Saylor, Balaji, Chip In
When the Square mastermind declared hyperinflation was coming to the US, the world shook. With a single tweet, Jack Dorsey lit a fire that keeps on burning. In that first article, NewsBTC compiled the first reactions to this dangerous idea. Then, we told you about Peter Schiff’s unimaginative response. Now, it’s time for the big guns. Ark Invest’s Cathie Wood answered with her deflationary theory, and Elon Musk, MicroStrategy’s Michael Saylor, and notorious financial podcaster Preston Pysh answered.
Related Reading | Michael Saylor Brings The Thunder To Venezuelan Bitcoin-Only Podcast
Also, entrepreneur and former Coinbase CTO, Balaji Srinivasan, threw extra logs to the fire. He was one of the first responders, offering a reward for the design of a decentralized inflation dashboard. Besides them, Wired columnist Virginia Heffernan provided the 1984-like response, and Reason magazine answered her promptly.
This article is full of knowledge and interesting theories for you to ponder. Make some popcorn and enjoy the show.
Hyperinflation And Cathie Wood’s Theory Of Deflation
This woman doesn’t mince words. “In 2008-09, when the Fed started quantitative easing, I thought that inflation would take off. I was wrong. Instead, velocity – the rate at which money turns over per year – declined, taking away its inflationary sting. Velocity still is falling.” Is she right? Isn’t purchasing power the real victim of the rampant money printing that all governments are engaging in?
In 2008-09, when the Fed started quantitative easing, I thought that inflation would take off. I was wrong. Instead, velocity – the rate at which money turns over per year – declined, taking away its inflationary sting. Velocity still is falling. https://t.co/tFaXSaCKqS
— Cathie Wood (@CathieDWood) October 25, 2021
Let’s read her whole theory before jumping to conclusions. According to Wood, “three sources of deflation will overcome the supply chain-induced inflation that is wreaking havoc on the global economy.” Those are:
1– “Artificial intelligence (AI) training costs, for example, are dropping 40-70% at an annual rate, a record-breaking deflationary force.”
When costs and prices decline, velocity and disinflation – if not deflation – follow. If consumers and businesses believe that prices will fall in the future, they will wait to buy buy goods and services, pushing the velocity of money down.
— Cathie Wood (@CathieDWood) October 25, 2021
2.- ”Creative destruction, thanks to disruptive innovation. They have not invested enough in innovation and probably will be forced to service their debts by selling increasingly obsolete goods at discounts: deflation.”
They leveraged their balance sheets to pay dividends and buy back shares, “manufacturing” earnings per share. They have not invested enough in innovation and probably will be forced to service their debts by selling increasingly obsolete goods at discounts: deflation.
— Cathie Wood (@CathieDWood) October 25, 2021
3.- “Businesses shut down and were caught flat-footed as goods consumption took off during the coronavirus crisis, they still are scrambling to catch up, probably double- and triple-ordering beyond their needs.” + “As a result, once the holiday season passes and companies face excess supplies, prices should unwind.”
As a result, once the holiday season passes and companies face excess supplies, prices should unwind. Some commodity prices – lumber and iron ore – already have dropped 50%, China’s crackdowns are one of the reasons. The oil price is an outlier and psychologically important.
— Cathie Wood (@CathieDWood) October 25, 2021
She ends her Twitter thread with an unironical “Truth always wins!” Well, Cathy, the truth is that governments everywhere are printing money non-stop. They’re literally inflating the monetary supply. We’re not talking hyperinflation yet, but still…
In any case, let’s invite other celebrities to chip in.
Elon, Saylor, Pysh, And Balaji Respond To Wood
Bitcoin-denier Elon Musk provides a practical answer, “I don’t know about long-term, but short-term we are seeing strong inflationary pressure.” Wood’s theory has some teeth to it, but there’s no denying that the prices are rising. And that the money printer goes brrrrrrrr. Musk also links to this satirical article. No mention of hyperinflation here.
Then, it’s time for Bitcoin maximalist extraordinaire Michael Saylor. “Inflation is a vector, and it is clearly evident in an array of products, services, & assets not currently measured by CPI or PCE. Bitcoin is the most practical solution for a consumer, investor, or corporation seeking inflation protection over the long term.” Inflation is clearly evident and that’s that. No mention of hyperinflation either.
Inflation is a vector, and it is clearly evident in an array of products, services, & assets not currently measured by CPI or PCE. #Bitcoin is the most practical solution for a consumer, investor, or corporation seeking inflation protection over the long term.
— Michael Saylor (@saylor) October 26, 2021
BTC price chart for 11/03/2021 on Gemini | Source: BTC/USD on TradingView.com
Investor and podcaster Preston Pysh goes even further, “That’s because all the debasement keeps nesting itself into the cap rates of anything equity based AND the prices of Fixed Income. It should all make total sense when the market they are manipulating IS the fixed income market.” Market manipulation. Total control of the data. Those are factors to consider.
That’s because all the debasement keeps nesting itself into the cap rates of anything equity based AND the prices of Fixed Income. It should all make total sense when the market they are manipulating IS the fixed income market.
— Preston Pysh (@PrestonPysh) October 26, 2021
Contributing to the conversation for the second time, Balajis plays peacemaker and says that both Dorsey and Wood are “right in different ways.” According to him, “Everything technology disrupts will see prices fall. Everything the state subsidizes will see prices rise.” That’s because “The state actively prevents automation in the sectors it controls.” So, the current scenario is “a race between technological hyperdeflation & state-caused inflation, possibly hyperinflation.”
Both @jack and @CathieDWood are right in different ways.
Everything technology disrupts will see prices fall. Everything the state subsidizes will see prices rise. Like the graph below, but even more extreme. https://t.co/KDIGBH9iZp pic.twitter.com/JYTlw4xF55
— Balaji Srinivasan (@balajis) October 25, 2021
Manifesting Hyperinflation Into Existence
There’s an old wives’ tale that says that by only mentioning hyperinflation, one could generate a chain of unfortunate events that end up causing it. Cathie Wood brushed on the subject by saying “If consumers and businesses believe that prices will fall in the future, they will wait to buy goods and services, pushing the velocity of money down.”
Taking it to another level, Wired columnist Virginia Heffernan brings 1984 vibes to the discussion. “Like “divorce” in a marriage this word Jack tweeted should not be uttered unless you’re trying to bring it into being. No one shd take investment advice from someone who sees himself as making markets.”
Like “divorce” in a marriage this word @jack tweeted should not be uttered unless you’re trying to bring it into being.
No one shd take investment advice from someone who sees himself as making markets.
How insanely reckless to tweet this. Immoral. Jack, ban thyself. pic.twitter.com/fl7CWRXdN8
— Virginia Heffernan (@page88) October 24, 2021
Could Jack Dorsey bring hyperinflation with a tweet? Maybe. However, isn’t the main suspect the relentless money printing the governments are engaged in? That seems to be a determinating factor, since that’s exactly what inflation means. There are no two ways about it, the governments are inflating the money supply with their constant money printing. And Jack Dorsey’s tweet is just a comment on the situation.
Related Reading | Is Evergrande Defaulting? Is This The Reason For China’s War Against Bitcoin?
In any case, Reason magazine has another interpretation for Heffernan’s bizarre behavior. Apparently, historically speaking, when hyperinflation happens the next move by the money printers is to prohibit people from even mentioning hyperinflation.
“It is true that expectations do affect behavior and therefore prices. But any brouhaha Dorsey could stir up with his monetary shitpost obviously pales in comparison to the potent macroeconomics factors—spending and printing bonanzas, high debt overhangs, lockdown policies, and the current situation with the supply chain, to name a few—that are truly driving the “transitory” inflation that our widely respected experts do admit.”
Still, the USA is far from hyperinflation and the Dollar is still the reserve currency of the world, which gives them leeway.
Featured Image by jggrz from Pixabay – Charts by TradingView
NewsBTC
Economist Peter Schiff Calls Bitcoin An ‘Imaginary Friend’ In Response To Jack Dorsey’s Hyperinflation Tweet
Peter Schiff is an economist, gold advocate, and one of Bitcoin’s biggest critics. He has never liked the digital currency.
He believes that real value is derived from an asset’s ability to create commercial demand in markets; and always refers to gold as a perfect example of this. In contrast, he says that Bitcoin is nothing but an asymmetric store of value with no other use except attracting an endless supply of buyers for the limited supply of assets. In short, it is a Ponzi scheme. However, he has been proven wrong over and over again.
In his most recent critique of Bitcoin, Schiff said it is not a real asset. This was in response to a tweet by Twitter CEO Jack Dorsey about the possible arrival of hyperinflation in the U.S. soon.
Schiff Responds To Dorsey
On Saturday, October 23, Jack Dorsey shared his opinion on the current economic situation in the U.S on Twitter. He tweeted about the imminent hyperinflation as a result of the constant money printing in the U.S., and how the rest of the world would suffer from it.
Related Reading | Is Hyperinflation Inevitable? Jack Dorsey Says It’ll “Change Everything”
In response, Schiff tweeted that people should not look to Bitcoin to save them because it is not a real asset. Instead, they should own real assets like gold.
Just don't expect to find any refuge from it in #Bitcoin. To protect yourself from #hyperinflation you'll need to own real assets. #Gold qualifies, but Bitcoin does not.
— Peter Schiff (@PeterSchiff) October 24, 2021
Another Twitter user commented that Bitcoin is, in fact, real. And that it has just surpassed the Swiss Franc in Market cap. At this point, Schiff replied, calling the cryptocurrency a “make-believe asset” and that it is the adult version of an imaginary friend.
#Bitcoin is a make believe asset. Sometimes kids have imaginary friends. It's the same concept, except with adults.
— Peter Schiff (@PeterSchiff) October 24, 2021
Peter Schiff’s Grudge with Bitcoin
According to this Wikipedia profile, Peter Schiff is an American stockbroker, financial commentator, and radio personality. He is also CEO and chief global strategist of Euro Pacific Capital Inc., a broker-dealer based in Westport, Connecticut. Additionally, he is involved in various roles in other financial services companies, including Euro Pacific Asset Management, an independent investment advisor, Schiff Gold (formerly Euro Pacific Precious Metals), a precious metals dealer, and Euro Pacific Bank, a full-reserve bank.
In addition to all these, Schiff is known for something else – his grudge with Bitcoin. He has always claimed its value will one day drop to nothing.
Earlier this year, Mark Cuban told Schiff to “move on” because “gold is dead.” In Response, Schiff said, “Mark, a lot of your athletes wear gold jewelry. Ask them why. Gold has many uses outside of jewelry that contributes to its value as a metal. It’s not hyped at all. Gold is money. Bitcoin is 100% hype. It’s nothing.”
Related Reading | Mark Cuban Slams Peter Schiff: Gold is Dead, Bitcoin and Ethereum Are Today
Cuban himself used to be a bitcoin skeptic, preferring bananas to bitcoin because he claimed he could at least eat a banana.
In an interview on Good Evening San Diego a few days ago, Schiff referred to Bitcoin as a fool’s gold and a digital pyramid scheme. He also said that the SEC should not be encouraging people to participate.
BTC trading at over K | Source: BTCUSD on TradingView.com
When asked about the SEC’s recent approval of Bitcoin ETFs, he responded that “we should get rid of the SEC”.
He continued by saying, “I have no problem with the ETF itself, but if the SEC is pretending that it is some kind of watchdog and trying to make sure that investors don’t get hurt, then it makes no sense that they would approve this ETF because ultimately, the ETF is going to collapse to zero and the people who are left holding the bag are going to get wiped out.”
Schiff is also not impressed with futures ETFs. He says, “instead of owning nothing, you own a futures contract to gamble on nothing.”
Featured image by Bloomberg, Chart from TradingView.com
NewsBTC
Will Bisq Be Part Of Jack Dorsey’s Bitcoin DEX Project? Here’s The 411
As NewsBTC informed, Square will develop a Bitcoin-only Decentralized Exchange. However, will they work in conjunction with Bisq, the “peer-to-peer trading network”? Jack Dorsey seemed to confirm that both organizations are going to start talking at the very least. Why does this matter? What makes Bisq special? Keep reading to find out.
Related Reading | Why Square Will Create New Bitcoin-Focused Company, According To CEO Jack Dorsey
The Tweets That Point To Bisq
Def! Cc:@brockm
— jack⚡️ (@jack) August 27, 2021
Bisq answered that tweet with which Dorsey announced that his company’s TBD project would be to “build an open platform to create a decentralized exchange for Bitcoin.” The Bisq people claimed that they’ve been building their product “to be the go-to peer-to-peer DEX for bitcoin power-users.”Then, they offered collaboration, “Our heads together could result in something better than any of us could imagine.”
Dorsey answered “Def!” and copied Mike Brock, leader of the TBD project.
That exchange doesn’t guarantee anything, sure. But the organizations will meet, and they seem to share a lot philosophically speaking. The Bitcoin community, for its part, reacted under Jack’s tweet with a lot of “This is the way,” exciting .gifs, and Bisq praise.
BTC price chart for 08/29/2021 on Coinbase | Source: BTC/USD on TradingView.com
Why Will Dorsey’s DEX Be Bitcoin-Only?
In NewsBTC’s announcement of Square’s Decentralized Exchange project, we quoted:
Jack Dorsey’s tweet quoted an extensive thread by Square executive Mike Brock, TBD project head, who outlined the potential development paths for the open-source DEX.
“We believe Bitcoin will be the native currency of the internet. While there are many projects that will help make the internet more decentralized, our focus is solely on a sound global monetary system for all. But including all requires a few pieces we think we are missing.” Brock said in one of his tweets.
This is in tune with ideas expressed by Dorsey himself.
The reason I have so much passion for #Bitcoin is largely because of the model it demonstrates: a foundational internet technology that is not controlled or influenced by any single individual or entity. This is what the internet wants to be, and over time, more of it will be.
— jack⚡️ (@jack) January 14, 2021
After all, Square created the Bitcoin-focused TBD “with the sole goal of making it easy to create non-custodial, permissionless, and decentralized financial services.”
Square is creating a new business (joining Seller, Cash App, & Tidal) focused on building an open developer platform with the sole goal of making it easy to create non-custodial, permissionless, and decentralized financial services. Our primary focus is #Bitcoin. Its name is TBD.
— jack⚡️ (@jack) July 15, 2021
Everything That Makes Bisq Special
A couple of years ago, Manfred Karrer, Bisq co-founder, spoke to CoinDesk.”The goal is to become as decentralized and censorship-resistant as bitcoin. That’s a very high goal and it took bitcoin a very long time to get there,” he said. On Bisq’s site, they claim that “Bisq is code, not a company.” And said software is “open-source and community-driven.” What else makes Bisq special? Well…
Related Reading | Running Bitcoin: Passing The Torch From Hal Finney To Jack Dorsey
- First of all, “It’s software you run on your own hardware, which connects to other people running the Bisq software to facilitate trades.” Sort of like how torrents work.
- Bisq does not hold Bitcoin or any national currency. All the deals are between “the trading peers themselves.” And Bisq only has minimal information about either of them. Also, “no data is stored on who trades with whom.”
- And speaking about privacy. “All Bisq data is transferred over its own secure peer-to-peer network, which is built on top of the Tor network—no central servers.”
- The service doesn’t require registration.
- To grease the wheels, “Both traders are required to pay security deposits, which are refunded after trades are completed.”
- Bisq doesn’t accept Paypal or credit cards because chargebacks are too easy.
- Bisq eliminates “the need for trusted third party exchange services.”
- The Bisq network “is fully peer-to-peer in that it requires no centrally-controlled servers and has no single points of failure.”
However, you should also know that someone hacked Bisq that one time, stealing 0K.
Featured Image by Jeremy Zero on Unsplash – Charts by TradingView
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Someone paid 1,500 ETH for Jack Dorsey’s NFT – Compares it to the Mona Lisa
The auction for the Non-Fungible Token (NFT) that gives proof of authority over Jack Dorsey’s “Tweet Genesis” has concluded. Held on Valuables, a platform that allows its users to convert their Tweets into NFT.
Created by the Ethereum based service Cent, the tweet has been “authenticated” by Dorsey, CEO of the social network and payment company Square. Valuables told auction participants:
The tweet itself will continue to live on Twitter. What you are purchasing is a digital certificate of the tweet, unique because it has been signed and verified by the creator.
The auction winner was Bridge Oracle Protocol CEO Sina Estavi after bidding nearly million in Ethereum (ETH). Outbidding Justin Sun, founder of Tron, who bid nearly million. Stavi told Dorsey:
Hey Jack, thank you for accepting my offer, and I’m glad this money is being donated to charity…. Let’s Bridge to freedom.
Dorsey previously confirmed that the proceeds from the sale of his NFT would be immediately converted to Bitcoin. The funds in BTC will be sent to GiveDirectly, a non-profit organization that is responsible for sending cash transfers to low-income individuals.
The organization is involved in a campaign to mitigate the effects of the COVID-19 pandemic on the continent. Dorsey used a fresh Ethereum address to conduct the transaction which was conducted via crypto exchange Kraken.
Via his Twitter handle Dorsey confirmed the money has been sent to the referred organization. Estavi responded in a separate tweet:
This is not just a tweet! I think years later people will realize the true value of this tweet, like the Mona Lisa painting
NFTs to fight climate change
Digital artist Mike “beeple” Winkelmann is also using the attention he has recently received for a good cause. Beeple is part of “The Carbon Drop” an NFT collection auctioned to aid solve climate change, created by The Social Alpha Foundation.
Beeple has celebrated the high participation the initiatives have been receiving. The digital artist believes solving climate change is crucial for NFT to have a future, the digital artist said:
we all know, this is absolutely something we MUST solve for NFT’s to realize their full potential. Luckily I know how amazing this community is so I have no doubt we will.
In a recent interview Beeple said the NFT crazed could be a bubble, but believe the technology will endure and have a used in people’s everyday life. The digital artist claimed:
I don’t think art is being devalued, I think in some cases a lot of value is being placed on the work. I think there is definitely, on some level, a bubble when you have NFT of toilet paper selling for ,000. That seems kind of ridiculous.
![Ethereum ETH](https://www.newsbtc.com/wp-content/uploads/2021/03/Ethereum-ETH22.jpg)