The CEO of Square and Twitter, said on Wednesday that “the world ultimately will have a single currency, the internet will have a single currency. I personally believe that it will be bitcoin”.
Dorsey went on to elaborate that he thinks it would happen “probably over ten years, but it could go faster.” However, Dorsey also admitted that Bitcoin “does not have the capabilities right now to become an effective currency” because “it’s slow and it’s costly”. Drosey’s Square app, to much fanfare late last year, started to allow people to buy and sell Bitcoin via the app in many states. Dorsey explained how “there are newer technologies that build off of blockchain and make it more approachable” and said that as more people use Bitcoin, the problems start to go away.
Dorsey also was part of a seed financial round for Lightning Labs last week that raised $2.5 million USD. Lightning Labs, run by CEO Elizabeth Stark, is the company behind the controversial development of the Bitcoin Lightning Network. Some proclaim that the Lightning Network will get rid of the slow transaction times and high transaction fees that have been plaguing the Bitcoin Network. Others say that the Lightning Network is a complicated solution to a problem that can be solved in simpler ways and may even recreate the current financial system within the crypto space.
Solutions to be found through competition of many different cryptocurrencies
Jack seems to believe that he knows how the battle between over one thousand cryptocurrencies will play out. Yes, it can be safely argued that a majority of those cryptocurrencies will fail, but there will also still be a significant amount of solid cryptocurrencies that are vying for the top spot(s). Dorsey recognizes that there are presently problems with Bitcoin that need to be solved so it can scale, but he also seems to believe that Lightning Labs will offer that solution. However, there is far from a consensus that the Lightning Network will do what they claim. In addition, Dorsey’s comments comes days after reports emerged that Twitter will ban crypto related ads on their platform.
Jack’s endorsement of Bitcoin and Twitter’s banning of crypto ads is interesting in that Bitcoin is the name-brand that does not need ads to spread awareness since it already gets free press. A ban on advertising will end up hurting cryptocurrencies with smaller markets that do not presently have the same public awareness. Yes, the ban could stop some scams, but it will also hamper competition among the many top quality coins. This competition is what incentivizes each coin to put their best code forward and act in the interests of the consumers. Without competition and only a “single” world currency, consumers would be very susceptible to sub par products, services, and code.
Bitcoin is approaching nearly a decade in age, of which the majority of that time it faced little to no direct competition. This lack of competition caused Bitcoin to ignore many of its to-be problems until it was too late. The effects of competition on other cryptocurrencies, however, is giving immediately usable products and services to citizens around the world, including third world countries, that simply do not have the capital nor the time to wait for Bitcoin to solve its scaling problems.
Dash is providing competitive solutions right now
Dash has only been around for a few years, but in that time Dash has spread throughout the world. Dash has done this through developing a great product and marketing campaigns that are possible via its unique governance and treasury system, but also through organic reach from people convincing their friends to use Dash. This has occurred because of the present functionality and reliability of Dash, but also confidence in the Dash community and Dash Core Group to solve issues that arise in the future as demonstrated by their past solutions.
Dash is a prime cryptocurrency competitor that harnesses competitive pressure to create products and services that have the end consumer in mind. Despite challenges that arise or praise given towards other cryptocurrencies, Dash has a worldwide network of users to continue to serve with present day solutions.