Volume is increasing, fees are manageable with a median cost of ~$0.23, and the lightning network has more nodes than ever. There are 3,702 nodes on the lightning network at the time of this writing, all according to BitcoinVisuals.com. Additionally, mining difficulty has been slowing rising since January 2019. This means that the cost of mining is expected to increase, which in turn, should increase the bottom price for Bitcoin. Miners will not want to sell Bitcoin for less than what it costs them to mine.
Over the past month, Bitcoin has risen ~$500 and people think it may break through the $4,000 mark.
Along with all of this, Jack Dorsey, the CEO of both Twitter and Square is betting big on it, alluding to buying $10,000 worth of Bitcoin per week in the current market. While Dorsey is a billionaire, this is still not small change, and quite a statement to be had.
It’s worth discussing that Jack Dorsey is the CEO of Square, a payment processing company, which also owns Cash App, an app where you can buy and sell Bitcoin, in addition to loading cash and spending it as you will.
While Dorsey has always been a tech enthusiast, there may be some business reasons for his enthusiasm towards Bitcoin. Payment processing companies have a notoriously low-profit margin with VISA and Mastercard services taking big cuts out of the transactions they process. If blockchain technology and second layer solutions such as the lightning network take hold, then VISA and other middlemen can be cut out of the transaction.
If Dorsey promotes Bitcoin properly, onboard more users through his Cash App, and then has people spending Bitcoin through Square terminals, then he has a lot to gain.
Additionally, if people begin tipping on Twitter more, then Twitter can become a pioneer in the micro-tipping space as a social network. Micro-tipping is not very popular yet across the internet, but people believe it will be very common in the future across the web as cryptocurrencies become the financial backbone of the internet. A micro-tipping example can be simply sending someone $0.0001 cent worth of cryptocurrency for answering a question, or simply creating nice content. If Twitter further integrates easy “tip” buttons that can be tied to a user’s wallet, then both Twitter and Square can act as a leader bridging the traditional world with the cryptocurrency world.