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Square Is Considering Creating A Bitcoin Mining System, Said Jack Dorsey

Square CEO Jack Dorsey has stated that the company is “considering” developing its own Bitcoin mining equipment using proprietary hardware and open source software. “Square is thinking about establishing a Bitcoin mining system based on custom silicon and open source for individuals and businesses all across the world,” Dorsey said in a Twitter thread Friday.

He went on to say that such a project would take a similar approach to the bitcoin hardware wallet Square began developing earlier this summer. However, developing a mining system would be far more difficult for the payments provider than developing a wallet. Creating custom chips is “extremely expensive,” as Dorsey points out, and would be uncharted ground for the payments giant, which has been a vocal promoter of Bitcoin.

 

“Mining needs to be more efficient,” Dorsey wrote. “Driving towards clean and efficient energy use is great for Bitcoin’s economics, impact, and scalability. Energy is a system-level problem that requires innovation in silicon, software, and integration.”

 

Dorsey, like his previous tweets on the hardware wallet, did not provide much details about how the mining system would actually work. However, he stated that the goal would be to make mining more efficient and accessible to a wider range of individuals, which might address two of the most pressing challenges surrounding cryptocurrency mining.

 

Bitcoin-related electricity consumption has just reached all-time highs, prompting serious concerns about the cryptocurrency’s influence on climate change. Mining has also increased the cost and scarcity of GPUs, making it increasingly impossible for the typical crypto fan to mine on their own.

 

“Bitcoin mining should be as easy as plugging a gear into a power source,” stated Dorsey. It is less obvious if Square will be able to accomplish this. In the interim, he said, the company “will begin the extensive technical inquiry required to take on this project,” and he hopes to receive comments on the concept.