Jack Dorsey pushing for Bitcoin with Elon Musk (or not?)

by Prince Dhaka, Research Analyst at Moving

Twitter and Square CEO, Jack Dorsey recently shared a link explaining why institutions should embrace digital currency. However, allegedly a sapiosexual, our rocket man, The CEO of Tesla, and SpaceX, Elon Musk got more than intrigued by Jack Dorsey’s whims. Elon Musk replied with a “bicurious” tweet. Soon after, Jack Dorsey proposed to have THE TALK with Elon about his curiosities. Elon has agreed to the proposal. Looking forward to what comes next from these crypto leaders.

Now let’s take a step back and understand what really happened. Shall we?

Oh! Nothing much actually. Both have decided to discuss Bitcoin at the B Word conference. The B Word conference will launch on July 21 and will be attended by the likes of Ark Invest CEO Cathie Wood, Block Stream CEO Adam Back, and former deputy director of CIA Michael Morell. Oh by the way, the Twitter exchange was exactly how we presented it to be.

Here is the tweet that led to all this:

What is the B-Word?

It’s not Bicurious.

The B Word is a conference organized by Crypto Council for Innovation. The conference would be centered around bursting various myths propagated around Bitcoin by the mainstream media along with helping institutions understand and embrace Bitcoin. There will be five broad discussion tracks,

  • Demystifying Bitcoin
  • Supporting the developer ecosystem
  • Securing the Bitcoin network
  • Regulating Bitcoin
  • Preserving the Bitcoin ethos

Although we are yet to receive an official confirmation on the B in the B-Word, sources suggest its “Bitcurious” -a word recently coined by Elon in the Twitter exchange with Jack of all trades.

Okay but no for real its “Bitcoin”

Why should you care?

The B Word event will be offering a live experience and a library of content to the investor community, enabling a more informed discussion about the role Bitcoin can serve for institutions across the globe. This can have a larger impact on cryptocurrencies and financial institutions. Not just that, few of the top influencers of the Crypto markets will share their views on cryptocurrencies — that can change the course of action for years to come.

In addition to that, there will be a good amount of insight into the recent Elon Musk turnaround.

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The turnaround:

The eccentric Tesla boss initially supported bitcoin, briefly adding the hashtag #bitcoin to his Twitter bio in January. Tesla then announced in February that it had bought $1.5 billion worth of bitcoin and would start accepting it as a method of payment. At the same time, Musk has made a number of tweets supporting dogecoin, which led to a stunning — but short-lived — rally for the joke cryptocurrency.

More recently, Musk appears to have rowed back on his views about bitcoin. Last month, he said Tesla would stop accepting bitcoin for car purchases, citing environmental concerns around the “insane” amount of energy required to mine the digital currency. His latest stances:

Average Guy Apprehensions — Who takes the center stage?

The average crypto investor is freaked out by these billionaire voices taking the center stage for crypto adoption.

They are rightly worried about pump and dump schemes that these billionaires can pull off. Since the markets are not regulated right now, there is a 100 % chance that none of the defaulters will be caught and charged. Therefore, the apprehensions are on point.

Why Jack and Elon?- people have shown aggression against this Jack move lmao, get it? Jack move?

Here, have a look at what’s on people’s minds:

Why is Jack Dorsey so invested?

In an interview at the Bitcoin 2021 conference earlier this month, Dear Dorsey said he would leave the helm of the two publicly traded US companies to work on bitcoin if needed.

Do you buy it? I don’t.

Such dedication towards Bitcoin surely makes him look like the only Bitcoin lover. In fact, Jack Dorsey has been propelling Bitcoin literacy and promoting Bitcoin at every possible avenue. However one should realize that in a capitalist society one only works for their gains unless Jack is one of the exceptions.

Here is the full story:

FinTech companies are helping to fuel the demand for bitcoin as they are opening these floodgates for millions of people to trade it.

In May 2018, Square started allowing Cash App users to buy and sell Bitcoin. PayPal followed suit with its digital wallet in 2020.

While PayPal just started offering this service and is yet to fully integrate it into its ecosystem, Square is much ahead of Paypal. According to Pantera Capital, Square and PayPal together are buying more than 100% of newly mined Bitcoins currently out there as well as some already in circulation.

Bitcoin has become a major contributor to Square’s top line with Bitcoin sales rising from $34 million in the first quarter of fiscal 2018 to $1.6 billion in the third quarter of fiscal 2020 — that’s a 4,600% increase in less than three years.

But are Bitcoin sales that profitable?

Bitcoin revenue comes with incredibly low margins — in a recent quarter Square’s gross margin on Bitcoin was just 2%. In other words, despite accounting for the majority of Square’s revenue, Bitcoin’s contribution to the bottom line is negligible. So what’s the point?

Square does not directly profit from Bitcoin sales — It’s the ecosystem and user onboarding. For example, Square’s Cash App also allows users to send peer-to-peer transfers, instantly transfer funds to bank accounts, receive direct deposits, buy and sell stocks, and make purchases using the Square Cash Card. And users who adopt two or more of those services transact three to four times more frequently and generate three to four times more gross profit than other users. After the Bitcoin adoption on the Cash App, daily users increased by 10% on the app. In other words, Square’s strategy is working, and PayPal will likely see similar benefits.

Now, the story is Jack Dorsey is just another billionaire who is invested in bitcoin. Therefore it makes sense for him to be pushing so hard for Bitcoin adoption. This conference may not be pivotal for an average investor but Jack Dorsey benefits from Bitcoin adoption — because he is not investing in Bitcoin, he is investing in the success of his business, Square. The ripple effect of this huge publicity from Elon Musk’s appearance in B Word is expected to benefit Square’s ecosystem.

Here now that you know the backstory, get this:

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