By Jim Duffy
February 25, 2021
Jack Dorsey is not known for being a mercurial, shoot-from-the-hip kinda guy. Running two progressive companies with his big brain, Dorsey appears to be a reflective, stoical character who inspires confidence in his Board and shareholders. In short, they listen to him as much as he takes counsel from them.
As the leader of both Square and Twitter, there is arguably no corporate leader more closely aligned with the cryptocurrency landscape than Dorsey. A Bitcoin “OG” or Old Guy, meaning in it from the start, Dorsey uses his Twitter moniker @Jack to endorse his crypto status. And the tagline nestled beneath his handle simply reads – Bitcoin. And with 5.2M followers on the social media platform, there is no doubt that this has a sizable impact on global crypto interest.
Dorsey is puts his money where his mouth is. By way of example, just this week Square purchased another 3,318 Bitcoin for a total sticker price of $170 million. At the company earnings call Dorsey stated,
“We believe the internet needs a native currency and we believe Bitcoin is it.”
But, this is not the first time that Dorsey and Square have put the leading cryptocurrency on the balance sheet. Last year, Square bought $50 million of Bitcoin only weeks after poster boy – Michael Saylor – announced that his company, MicroStrategy was re-shaping its relationship with the US dollar. Today, Saylor is leading the charge to create the first Nasdaq company balance sheet and treasury system that’s composed only of Bitcoin. He has expressed strong views on the US dollar and Bitcoin noting:
“The signal is monetary expansion everywhere. The problem is that people are going to lose half their wealth in a few years. The solution is Bitcoin. The rest is noise.”
The MicroStrategy share price has rocketed from $166 in October last year to over $1200 at its peak. Now resting around $835, many Nasdaq and S&P CEOs are now looking on in envy.
Some have argued that this is a snub to the dollar — a “speculative attack” on the flailing US currency that’s losing ground on the Sterling daily.
Max Keiser, another colourful and straight talking Bitcoin OG, believes Saylor, Dorsey and indeed Elon Musk are making a bigger point than simply speculating on Bitcoin.
“What Michael Saylor figured out and now possibly Elon Musk and others…..is that they have the Federal Reserve bank and the other central banks in a very precarious position, because these banks have artificially pushed interest rates down to these extraordinary levels of almost zero.”
In other words, the move to Bitcoin, it seems, is a part of bigger macroeconomic picture.
Change is happening, right under our noses. Tech entrepreneurs or “futurists” are deploying Bitcoin not just as a hedge against inflation, but as a new store of value for shareholders. This currency metamorphosis is most certainly one to watch.
In the meantime, Bitcoin, having hit $58,000 last week has re-adjusted to around $50,000, trading sideways for most of this week. Look for further updates on this here on Gokhshtein Media.