Could Jack Dorsey be right? Will we ever see BTC as a native internet currency?

03 Feb, 2019 | Updated: 03 Feb, 2019
by Will Heasman
Opinion
Could Jack Dorsey be right? Will we ever see BTC as a native internet currency?

In a recent episode of the Joe Rogan Experience, Twitter and Square CEO, Jack Dorsey, came out with the opinion that Bitcoin could become a“ native internet currency.” But is this plausible?

Speaking of his (relatively) incipient payment solution, ‘Cash App’ - in which users can buy and sell Bitcoin (BTC) - Dorsey said that he would forgo implementation of any other cryptocurrencies in place of BTC.

The CEO elaborated on this, explicitly stating that BTC could become a native internet currency. In his reasoning, Dorsey cited the founding principles of BTC as well as its tests, trial, and tribulations:

“It was something that was born on the Internet, was developed on the Internet, was tested on the Internet, it is of the Internet.”

Read more: Twitter CEO believes internet will have its native currency, possibly Bitcoin

It's fair to say that BTC as a global internet currency couldn’t be implemented overnight. Currently, the #1 crypto can register between 3-7 transactions per second, something which would have to greatly increase if it was to get anywhere close to becoming a globally accepted internet currency. However, Dorsey caveated with a timeline of 10 years before we saw any crypto take any reigns from fiat.

This is ample time in which to fix these scaling problems, in fact, work is already beginning to allay the issues. The Lightning network - a second layer protocol - aims to be the solution to the scaling issues plaguing bitcoin. Once this network is fully operational and widespread, BTC could be capable of processing billions of transactions per second.

Moreover, we’re already seeing online retailers warm up to the idea of Bitcoin as a means of payment. Big players such as Microsoft, who enabled BTC payments for their Xbox shop back in 2014, and overstock who accept a range cryptos such as BTC, Ethereum, Litecoin, dash, and Monero. All this without the need for a bank or a debit card, simply a wallet address with a sufficient amount of cryptocurrency.

Interestingly, many before Dorsey have signaled that Bitcoin has something much greater in store, far beyond its niche status as a form of currency.

Commentators such as Saifadean Ammous, a notable professor of economics, who reviewed the economic, and political implications of Bitcoin as a quasi-gold standard within his book ‘The Bitcoin Standard’.

Even the St Louis federal reserve offered the opinion that cryptocurrencies, such as BTC would eventually “drive out cash as a means of payment.”

Read more: Will Bitcoin replace fiat money?

However very few have suggested BTC as a native internet currency…

The potential for a native internet currency is far greater than any such notion of adoption by banks, or governments. Not only does the converse idea of a Bitcoin standard or reserve currency directly oppose the fundamentals of bitcoin, but it disgraces the principles of decentralization as a whole.

As Dorsey notes, BTC has the benefit of being intrinsically linked to the internet, it was made specifically for the internet, and couldn’t truly work without it.

The internet is global. It has unlocked avenues for millions of people to voice their opinions despite attempts at censorship, and no matter how controversial; it has opened up communication to those once isolated, single-handedly revolutionized commerce, and yet with all this innovation a native internet currency still hasn't been implemented. Instead, we stand by centralized payment methods, using traditional banking methods with their legacy systems chugging along offering extortionate fees and slow service. 

The exclusion of these middlemen offers further inclusion to those without access to a bank leveling the playing field and offering a globally fair and equal currency in which fees are negligible, and monetary policy is denoted by calculations, not arbitrarily set by those in power.

Likelihood of a digital asset becoming a native internet currency is fairly high, whether or not that cryptocurrency will be Bitcoin is still very much up for discussion... 

Read moreCrypto responds to Twitter, Cash CEO Jack Dorsey's pro-BTC interviewCrypto fund advisor: Bitcoin "is evolving into a global reserve asset"

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