Digital Assets

Bitcoin (BTC) Highlights of the Week – As Adoption Continues, Square Looks to Decentralize Mining

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Bitcoin Mining System

Over the course of 2021, Jack Dorsey made headlines on various occasions.  Not only did he resign as CEO of Twitter, he made various announcements which indicated his full focus will now be directed towards Bitcoin-based endeavours.  A few of these included working on,

This week saw Dorsey confirm that plans by Square for the Bitcoin mining system – first announced in October 2021 – will now come to fruition.

If there is one thing the past year has taught us, it is that the Bitcoin mining sector is robust and lucrative – albeit quite centralized.  This centralization was put on full display after China banned the practice, and Kazakhstan shut down its internet – each causing hash-rates to temporarily plummet.  While the network rebounded after each event, clear centralization among miners was highighted.

This Bitcoin mining system is being developed in an attempt to solve the aforementioned issue of centralization, as well as others.  The team behind this project at Square has noted three major issue which it must address if it intends on being successful.

  • Availability
  • Reliability
  • Performance

By making mining available to the masses, in an easy to maintain and profitable package, Square could quickly become a major player in the mining sector.  One thing is for sure though – the team has its work cut out for it.  If it was easy, everyone would be doing it.

A Tongan Proposal

When El Salvador made the decision to make BTC legal tender, it was heralded by many as a move which would finally kick-start Bitcoins supplanting of FIAT.  Society has a short-term memory though, and is never satisfied with what was just achieved.  Rather, we are more intrigued by what comes next.  As such, those which heralded El Salvador’s decision have wondered from the get-go which country would follow in its steps.

Heading in to the 2022, El Salvadorian President Nayib Bukele predicted that the coming year would see multiple nations do just that.

While there have been rumblings over the months that nations like Paraguay or even Argentina would follow suit, it appears as though Tonga may be next in line based off of recent commentary made by a former member of the Tongan Parliament.

In a recent conversation with CoinTelegraph, Lord Fusitu’a indicated that not only is a proposal soon to be voted on by Tongan Parliament to make Bitcoin legal tender, it incorporates the use of Volcanoes as energy sources for mining operations.

Rio de Janeiro

Adoption BTC as legal tender is not the only way for governments to show belief in the top digital asset.  At a recent conference in Rio de Janeiro, Mayor Eduardo Paes and associates announced plans to turn the city in to a ‘crypto hub’.  The following steps were given as examples of what is being currently being considered.

  • Allocating 1% of Rio de Janeiro’s treasury towards Bitcoin
  • 10% property tax discounts on payments made with BTC

The conversation which took place also included Miami Mayor Francis Suarez – a figure noteworthy for recently announcing similar plans to turn Miami in to a crypto hub, as well as receiving his own salary in BTC.

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Joshua Stoner is a multi-faceted working professional. He has a great interest in the revolutionary 'blockchain' technology.