- Jack Dorsey warns that Bitcoin could lose relevance if it remains a digital store of value and doesn’t evolve into a payment system.
- Dorsey stresses that Bitcoin’s success lies in its use for everyday transactions, especially in underdeveloped nations.
- He calls for better payment solutions and critiques Bitcoin’s reliance on the Lightning Network for microtransactions.
Jack Dorsey, CEO of Block and founder of Twitter, recently remarked that Bitcoin has strayed from its originally intended utility as a “peer-to-peer electronic cash system” and could risk failing if it is only used as a digital store of value.
Dorsey Highlights Bitcoin’s Potential as a Daily Payment Method
Speaking in a recent Presidio Bitcoin podcast with Haley Berkoe, Dorsey emphasized that Bitcoin’s success lies in its use as an everyday means of payment. He warned that the coin could lose its relevance if it is limited to the role of a “buy and forget” asset.
Dorsey’s stance opposes the leading narrative that Bitcoin could become a digital gold due to its capped supply. For context, the total amount of BTC in existence is 21 million, and no new coins will be created once it hits the supply limit. Due to this limited supply, many Bitcoin holders have adopted the “HODL” approach, believing it will continue appreciating. However, Dorsey argues that this trend could push BTC to the fringes of the financial space.
He stated:
I think it has to be payments for it to be relevant on the every day. Otherwise, it’s just something you kind of buy and forget and only use in emergency situations or when you want to get liquid again. So I think if it doesn’t transition to payments and find that everyday use case, it just gets increasingly irrelevant And that’s failure to me.
Dorsey’s statements rehashed the long-standing question among crypto faithfuls: Is BTC digital gold, a means of payment, or both?
Dorsey Advocates for Bitcoin’s Original Vision, Urges Better Payment Solutions
Jack Dorsey drew attention to the original vision behind the creation of Bitcoin as explained by its creator, Satoshi Nakamoto, in the BTC whitepaper. He also called for the development of payment solutions that are “fast, private, and secure.”
Dorsey highlighted the practical application of Bitcoin as a medium of exchange in underdeveloped nations. In some parts of Africa and continental America, individuals are reportedly adopting BTC as part of their transaction methods. Bitcoin is used for activities like meal payments and cross-border transactions.
The Twitter founder also weighed in on the concerns of volatility and scalability, suggesting that increased accessibility to BTC will eliminate heavy price swings.
Furthermore, Dorsey raised concerns over Bitcoin’s microtransaction-oriented layer 2 protocol approach. He called the introduction of alternative solutions to the lightning network that could improve simplicity and ease of conducting transactions.
Global Shift Toward Bitcoin Reserves Amid Market Turbulence
Bitcoin’s demand has grown in the past years, with several institutions and countries opting for BTC as a digital store of value. Last month, Trump signed an executive order to establish a Bitcoin Reserve. Other governments, including China, Germany, and El Salvador, have taken a similar route by increasing their BTC holdings.
Despite massive adoption, Bitcoin has yielded to the current financial market meltdown. At the time of writing, one Bitcoin is worth $78,120 after slipping by 9.47% in the past month.
