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Listener Question: "What are the implications of Jack Dorsey's tweet about Bitcoin?"

Yassine Elmandjra: "This was a really interesting highlight from Square's earnings call last week where Jack basically doubled down on Square's commitment remaining Bitcoin focused.

One of the questions that was asked was whether Square was ever going to extend into crypto beyond Bitcoin, like buying and selling other cryptocurrencies. And Jack quite bluntly said that they weren't."


Phil here... here's the Q&A from the Square earnings call...

Analyst Question: Jack, I want to follow up on your prepared remarks regarding bitcoin. Are you looking to expand into crypto beyond bitcoin buy and sell, for example, buy and sell of other cryptocurrencies and also enabling your users to kind of engage in defined NFT ecosystems?

Jack Dorsey: We're not. Our focus is on helping bitcoin to become the native currency for the Internet. And so we want to -- we have a number of initiatives towards that goal. Cash App is just one. We're going to be building a hardware wallet. We're exploring bitcoin mining, a consumer device to mine bitcoin at home or in a business or Seller businesses, in fact.

We believe this focus is important. We believe it's right. And a lot of it has to do with the resilience, the fundamentals, the principles that bitcoin offers. And we also want to make sure that we're giving back to the community as much as possible. And this is also reflected in our approaches for bitcoin wallet, bitcoin mining and our new business unit called TBD, which is focused on building a developer platform to enable more ideas around decentralized finance on the bitcoin stack and on the stability that it offers and all the resilience that's had over the decade plus.

So we're going to release more details on what TBD is doing with a white paper on November 19. And we're really excited about the direction and excited about our focus.

Back to Yassine...

"Another focus is on helping Bitcoin become the native currency of the internet. I think this is quite a bold stance to take in light of all the momentum we've seen outside of Bitcoin this market cycle. "

Phil here again... here's the Q&A on Bitcoin becoming the native currency of the internet...

Analyst Question: "are you planning to offer a pay-with-bitcoin feature through Cash App Pay at some point"

Jack Dorsey: "In terms of Cash App Pay and bitcoin and specifically lightning functionality probably in that realm, it's definitely something that the foundation will allow. And we're -- as I said before, like our focus is on helping bitcoin to be the native currency for the Internet. So currency aspects of it and of the network are really important to us, and we're going to do more in that space."

Back to Yassine...

"I do think that the focus will end up being a huge positive for Bitcoin and Square in the long run, especially if we do end up entering a prolonged bear market like we've seen in previous market cycles.

One of the things that Jack emphasized was that the focus is important. So for Bitcoin to succeed in the way that he wants it to succeed, that the only way to do that is to have their entire crypto efforts be focused on Bitcoin.

If you hear Jack speak about Bitcoin, a lot of the interest comes from Bitcoin's resilience, its fundamentals, its principles that quite frankly, other crypto networks haven't really provided to date. And we've started to see some of the initiatives that Square is now spearheading just in the last few quarters outside of the Square crypto, which is that independent subsidiary focused on funding and supporting open source development.

So in the last two quarters, Square announced three major Bitcoin specific initiatives that are in the works.

The first is a consumer Bitcoin hardware wallet. The second is a Bitcoin mining system. Both of these will be focused on helping Bitcoin reach a mainstream audience while also strengthening the network and ecosystem.

Jack's emphasis is really on decentralizing Bitcoin as much as possible. So offering the ability for users to custody their private keys, but then even more than that, mine their own Bitcoin as a consumer. I think it's going to do wonders for Bitcoin's overall distribution.

Then the third is this new business unit that we don't know the details yet of, and there's going to be a white paper published later this month, but there's one called TBD, which is focused on building an open developer platform with the goal of making it easy to create non-custodial, permissionless, and decentralized financial services with the focus on Bitcoin.

It's really interesting that they aren't even seeing some of the practical applications outside of Bitcoin and seeking to basically absorb that functionality directly on Bitcoin instead of diversifying away from it.

I'll finish by saying that earlier this year, ARK organized a Bitcoin-specific conference called The B Word, which featured a moderated conversation between Cathie, Jack, and Elon Musk. If you haven't already watched it, I'd highly recommend watching it and taking note of the way that Jack talks about Bitcoin, views Bitcoin, and really how philosophically aligned he is with it. You can just tell in the tone of his voice that this is not a way for him to get richer. This is a way for him to really unlock economic empowerment in emerging markets.

And I feel like he just thinks Bitcoin is by far ahead of the game when it comes to offering those tools for freedom outside of just 'getting rich', quote unquote."