In a brisk “21 and 21” interview with Haley Berkoe at San Francisco’s Presidio Bitcoin workspace, Jack Dorsey—CEO of Block and former Twitter head—warned that Bitcoin’s rising appeal among major financial entities might jeopardize the open principles that gave birth to the world’s leading cryptocurrency.
“It likely poses some harm,” Dorsey stated regarding institutional investments in Bitcoin. However, he recognized that substantial participation is virtually unavoidable, remarking, “I think it’s evident that we will witness more of it, and I hope that more individuals embrace the values that made Bitcoin influential in the beginning.”
Discussing the arrival of institutional players like BlackRock, Dorsey stressed Bitcoin’s permissionless characteristic: “To develop a completely open money transmission protocol […] that has attracted institutions like BlackRock, which we previously resisted—now they must pay attention to it—yet you still don’t require their permission to innovate on it […] where else can you discover that?”
Potential Risks for Bitcoin
Dorsey’s remarks emerged during a dialogue covering topics from his initial fascination with “the old cypherpunks” to the initiatives Block is spearheading to enhance the core infrastructure. He pointed out ongoing efforts on an “open-source mining rig and chipset,” alongside Bitkey, a self-custodial wallet, and Block’s integration of BTC into Cash App.
One of Dorsey’s key worries is that Bitcoin may become irrelevant if it narrows its focus to merely serving as a store of value. “I believe it falters due to irrelevance—like it simply fails to resonate with people daily,” he noted. He emphasized that guaranteeing its use for payments is crucial to making BTC indispensable.
“If it ultimately transforms into just a store of value and nothing beyond that, I don’t foresee it gaining relevance at all. It has to be about payments for it to be pertinent in everyday life,” Dorsey cautioned, asserting that otherwise, Bitcoin risks “fading out of people’s lives” and descending into obscurity.
A known Bitcoin supporter, Dorsey also contended that concentrating exclusively on the Lightning Network—a leading Layer 2 solution—may hinder BTC’s growth. “I believe there’s more we can achieve beyond Lightning,” he stated, clarifying that while Lightning “isn’t inadequate,” it’s just one alternative. “I don’t think we should settle for only one Layer 2,” he continued, underlining that Bitcoin benefits the most from a variety of experiments in payments and other use cases.
Dorsey repeatedly highlighted the necessity for open-source development, encouraging corporations to finance Bitcoin Core and other community-driven initiatives without exerting control. “Having some manner of granting capability for open-source developers is vital,” he asserted, lauding projects like Spiral—a BTC-focused division of Block—as well as independent funding programs like Brink and OpenSats.
He also addressed the budding influence of artificial intelligence and its interactions with BTC, envisaging a future where agents could effortlessly transact on behalf of users. “It’s all about who you’re requesting permission from,” he explained. “Development accelerates when you have to seek lesser permissions.”
The interview’s backdrop, Presidio Bitcoin, highlights Dorsey’s vision of uniting real-world communities to enhance engagement. “I think this is wonderful because it bridges Silicon Valley and all the activity down there, and Bitcoin,” he remarked, stressing the necessity for physical spaces where ideas can evolve into actionable projects.
From creating more accessible wallets to reaffirming Bitcoin’s permissionless essence, Dorsey sees significant work ahead. When asked what single message he would impart to newcomers, he stressed that one shouldn’t depend on any individual’s perspective—his included—before entering the space: “Don’t heed anyone’s solitary opinion about Bitcoin,” he stated. “What renders Bitcoin unique is its permissionless nature. You don’t need anyone’s approval to create what you want to see.”
As of the latest update, BTC is valued at $83,523.
Featured image from YouTube, chart from TradingView.com
Editorial Process for bitcoinist focuses on providing thoroughly researched, accurate, and impartial content. We adhere to rigorous sourcing standards, and each article is meticulously reviewed by our team of top technology experts and experienced editors. This process guarantees the integrity, relevance, and value of our material for our audience.
