Why Jack Dorsey Matters for Bitcoin

Jack Dorsey is against Web 3.0. That matters for Bitcoin because crypto investors should not welcome venture capital involvement in the space.

Web 3.0 promotes a decentralized version of the internet, based on Ethereum, Solana, and other decentralized blockchains. Investors should avoid web3 because they will never escape their incentives. Dorsey said that it is ultimately a centralized entity with a different label.

Dorsey’s focus on Bitcoin is admirable. He could have promoted web3 on cryptocurrencies, which would send their prices sharply higher. Dorsey favors Bitcoin over Defi, NFT, and DAO as it is enabled by Ethereum, Cardona, and Solana.

Cryptocurrencies benefit when it is decentralized, otherwise, it is not secure. Furthermore, it needs scarcity. Without uniqueness, it has no moat. Regardless of his skepticism, the value of cryptocurrency of all types remains high. Investors seek an alternative to holding the U.S. dollar, a reserve currency. Uncontrolled government debt levels could shake the dollar levels. As more people start or accumulate positions in crypto, digital currency will play a bigger role in commerce.

Besides holding Bitcoin and Ethereum, investors could consider digital mining stocks like Marathon Digital (MARA) or Hut 8 (HUT). Coinbase (COIN) and Voyager Digital (VYGVF) offer people a platform for storing and exchanging crypto.