Jack Dorsey-owned Square Inc. has confirmed that it will make a hardware wallet for Bitcoin. The payments company made this announcement via a tweet on Thursday not too long before Senator Elizabeth Warren emphasized the increasing risks that customers and financial institutions are faced with their continuous involvement in cryptocurrency. “We have decided to build a hardware wallet and service to make Bitcoin custody more mainstream”, Square’s Head of Hardware – Jesse Dorogusker tweeted.
Bitcoin storage is usually done with online wallets provided by crypto exchange platforms and online wallet services but offline storage is also possible. The advantages that having an offline Bitcoin wallet provides are quite numerous. With an offline wallet, users have total control over their cryptocurrency and private keys – this gives users a sense of independence and being in total control of their funds. It also provides users with a shield from the arrows of online theft.
Square’s CEO Jack Dorsey first announced that Square was considering creating hardware wallets for Bitcoin last month. He made this announcement via a tweet.
Bitcoin (and extensively the cryptocurrency market) has been facing extreme volatility. Bitcoin which reach an all-time high of $65,000 has been struggling between $30,000 and $40,000, and at some point, it fell below $30,000 for a short time before coming back up. Recent crackdowns from Chinese authorities have also sent Bitcoin into a frenzy and Bitcoin miners have begun to move out of China. Over $300 billion has been wiped from the crypto market since these crackdowns. Bitcoin first started having “bad days” after Elon Musk announced that his electric vehicle company Tesla would put a hold on accepting Bitcoin as a means of payment. Tesla’s initial acceptance helped Bitcoin attain new heights but after its rejection that spurred out of environmental concerns, Bitcoin started struggling.
Shortly after Square’s announced its plans to make non-custodial Bitcoin wallets, Senator Elizabeth Warren, a former U.S. Presidential candidate, raised concerns about the risks associated with cryptocurrency. She sent a letter to Gary Gensler; Chairman of the U.S. Securities and Exchange Commission stating her concerns.
There is still hope that Bitcoin will defy the law of gravity and rise again, gaining new momentum and attaining new heights again.