Fintech and digital payments company Square announced earlier today that it has no plans to buy more bitcoins in the near future. The company also mentioned the carbon footprint of the Bitcoin network and practical problems that need to be resolved in the future.
Square is not planning to buy more bitcoins
Square is one of the most popular fintech payment processors in the industry, and the company announced that it does not plan to buy more bitcoins in the foreseeable future. The statement was made by Amrita Ahuja, Square’s chief financial officer, in an interview with Financial News. Ahuja said:
“We currently do not have any plans for further purchases. There are currently no plans to reassess our situation from a financial perspective.”
The company was one of the first companies to join the Bitcoin trend and currently holds 5% of its cash holdings in Bitcoin. The CEO of Square is a Bitcoin advocate Jack Dorsey (Jack Dorsey). He bought $50 million worth of Bitcoin in October last year and doubled his bet in February this year. This time he spent $170 million in Bitcoin. In the last earnings conference call, Square caused $20 million in Bitcoin impairment losses in its Bitcoin investment in the first quarter of 2021.
Bitcoin carbon footprint
Ahuja also mentioned the environmental concerns that the Bitcoin network has recently caused. she says:
Our position has always been that this is an area that requires innovation in renewable energy and clean energy, and we want to be a part of it. Regarding how renewable energy and clean energy become a larger part of the blockchain as a whole and a larger part of the entire mining and trading network, there is a broader supply chain problem…This is the whole of the network that we need to solve Fixed footprint.
The company published a research paper last month showing that in the long run, Bitcoin can act as a catalyst for miners to use new, cleaner forms of energy.
However, there has always been an overall concern about the carbon footprint used by the Bitcoin network for normal operation. Bitcoin mining is a key process to ensure the security and transactions of the Bitcoin blockchain. It is a task that consumes a lot of energy. This fact has provoked criticism from environmental advocates who believe there are better alternatives to Bitcoin.
This week, electric vehicle company Tesla announced that due to environmental issues, they will stop accepting Bitcoin as payment.Its CEO Elon Musk (Elon Musk) in tweet, Said he is a strong supporter of cryptocurrency, but he cannot promote the substantial growth of fossil fuels such as carbon.
How do you think Square is not planning to buy more bitcoins? Tell us in the comments section below.
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