Dorsey hopes that the Bitcoin team will use Square’s existing technology to revolutionize DeFi for the cryptocurrency.

The creation of this new division has come at a time when BTC is in a bit of a trough after a massive price increase in May. Since then, BTC has shed 30% of its value, and the bear market seems far from being over. However, it should be noted that the number of daily transactions performed using Bitcoin is still above the number recorded in February 2018. For instance, BTC handles just under 40 million transactions per day, whereas it had reached above 80 million transactions per day in mid-2017. It is, however, evident that BTC has struggled to find a strong use case with the average daily volume falling as its value has increased.

If this is indeed the reason behind the creation of Square’s new Bitcoin team, there is a silver lining on the horizon for BTC. Square has been an integral player in the crypto space since the company was first founded. Back in 2013, CEO Jack Dorsey tweeted out that Square had a partnership with Coinbase and Coinbase was working on integrating bitcoin trading and trading platforms into the Square Wallet app.

There is no doubt that BTC will continue to remain as a highly volatile asset. There is a chance that BTC will continue to surge, which will result in increased volatility. In order for BTC to make it as an ideal asset for traditional finance, it will need to prove its credibility in use case scenarios that have traditionally been associated with other assets such as gold.

Either way you look at this development, it represents a major fundamental shift for Bitcoin. While Bitcoin traders and miners are solely focused on personal gain, market leaders such as Dorsey are actually concerned about the future of this cryptocurrency, which a few years from now will be completely mined and in high demand from speculators. Should Bitcoin continue to become more expensive and at the mercy of mining cartels, its potential for retail circulation would be diminished.