Letter #23: Square Inc.'s Foray into Bitcoin Hardware Wallets is a Sign of the Times

Dear Readers,

Whether in the world of finance, banking, or Bitcoin, it’s of paramount importance that individuals and companies maintain the highest levels of security. After all, money makes the world go round….or at least keeps food on our tables and roofs over our heads.

Security is perhaps even more important in the context of Bitcoin. The Bitcoin blockchain is one of the most secure networks in existence — it’s protected by tens of thousands of computers or users, and Bitcoin transactions are infamous for being irreversible (in that regard, the impressive security inherent to Bitcoin can be a double-edged sword).

Relentless in their pursuit of increased security and usability for all Bitcoin users, Jack Dorsey and friends over at Square Inc. recently announced their intent to produce a Bitcoin hardware wallet, pitting themselves against longtime manufacturers in the space like Ledger and Trezor:

This announcement has a variety of benefits for both Bitcoin and Square. Bitcoin will benefit by being further exposed to the large number of users whose attention Square commands on a regular basis. Square’s Cash App alone has over 30 million monthly active users, many of whom already actively trade Bitcoin within the app. Square itself will benefit by further solidifying the Bitcoin-forward mindset that the company has instilled within itself and its brand over the past several years.

In order to better understand the true impact of Square’s announcement, it’s important to understand two pillars of Bitcoin usage: private keys and cryptocurrency wallets.