Twitter Chief Shows More Bitcoin Support By Running ‘Node’ Software

Bitcoin has gotten a further boost to its image as Twitter CEO Jack Dorsey posted a picture of his computer running bitcoin “node” software. CNet reported that he let the world know through a tweet.

A node helps to validate cryptocurrency transactions and also stores the blockchain records of all digital currency exchanges.

Dorsey had already established himself as a bitcoin fan. Square, the FinTech payments company headed up by Dorsey, announced last fall that it had invested $50 million — approximately 1 percent of its total second-quarter assets — to purchase roughly 4,709 bitcoins.

“We believe that bitcoin has the potential to be a more ubiquitous currency in the future,” Amrita Ahuja, chief financial officer of Square, said at the time. “As it grows in adoption, we intend to learn and participate in a disciplined way.”

Square said that cryptocurrency aligns with the company’s purpose in that it empowers people worldwide to participate in a global monetary system. The company has previously invested in bitcoin “from a product, leadership and legal innovation perspective.”

Square introduced bitcoin trading in 2018 with its Cash App, and the following year launched the independent Square Crypto. Square also rolled out the nonprofit Cryptocurrency Open Patent Alliance (COPA).

In general, bitcoin has been on a tear so far in 2021. At one point, the cryptocurrency reached just under $42,000. That’s not to say that bitcoin hasn’t had its ups and downs. On Jan. 11, the market came crashing down and bitcoin (BTC) fell over 12 percent from a day earlier, to as low as $30,863.

“The correction we saw were expected, as we believe the BTC price surge recently from under $20,000 to $40,000 in the past four weeks will induce sell pressure,” said Simons Chen, executive director of investment and trading at the cryptocurrency financial services firm Babel Finance. “The $40,000 mark could have been a trigger for profit-taking,” Chen told CNBC.