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Jack Dorsey Backs Bitcoin as Dollar’s Replacement but Questions Web 3

The Twitter and Block co-founder is a supporter of crypto, but not so keen on how Web 3 is being funded.

By Eliza Gkritsi, Tanzeel Akhtar

Updated May 11, 2023, 5:52 p.m. Published Dec 21, 2021, 8:18 a.m.

Bitcoin (BTC) will replace the U.S. dollar Jack Dorsey said on Tuesday, in response to a tweet by rapper Cardi B.

Cardi B broadly asked if crypto would replace the U.S. currency, to which Dorsey replied “Yes, Bitcoin will.”

Yes, Bitcoin will
— jack (@jack) December 21, 2021

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The co-founder and former CEO of Twitter is a big supporter of crypto, and has expressed his support for bitcoin since at least 2018. In August, he tweeted that bitcoin “will unite a deeply divided country (and eventually: world).”
His enthusiasm wanes, however, when it comes to the way Web 3, the third generation of internet services that has been made possible by decentralized networks, is funded.
“You don’t own ‘web3′ The VCs and their LPs do,” Dorsey tweeted, referring to venture capital firms and investors known as limited partners.

You don’t own “web3.”

The VCs and their LPs do. It will never escape their incentives. It’s ultimately a centralized entity with a different label.

Know what you’re getting into…
— jack (@jack) December 21, 2021

The tweet spurred the crypto community on Twitter to react, with some criticizing the former Twitter CEO and others applauding him.

When even @Jack calls out the Web3 ecosystem for its madness, you know it’s off the rails.

I’m with Jack on this one. https://t.co/DSG9qCAaP0
— Grady Booch (@Grady_Booch) December 21, 2021

There has been a growing number of VCs investing in Web 3 firms. Most recently Andreessen Horowitz led a $36 million Series A funding round for Web 3 infrastructure company Mysten Labs.
Tesla CEO Elon Musk also weighed in, tweeting: “Has anyone seen web3? I can’t find it.”
Dorsey left the social media giant last month to focus on fintech firm Block, formerly known as Square. During his tenure as CEO, Twitter enabled bitcoin tipping and promised it will integrate NFT authentication.
Bitcoin was trading about $48,900 at press time.
Parag Agrawal, the new CEO of Twitter, has been heavily involved in decentralized projects in the company.

UPDATE (Dec. 21, 08:53 UTC): Adds additional details in third and fourth bullet. Adds bitcoin price in fifth bullet.

UPDATE (Dec. 21, 14:39 UTC): Adds comments on Web 3 starting in third bullet; updates bitcoin price.

UPDATE (Dec. 21, 15:06 UTC): Adds Web 3 to headline.

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Eliza Gkritsi

Eliza Gkritsi is a CoinDesk contributor focused on the intersection of crypto and AI, having previously covered mining for two years. She previously worked at TechNode in Shanghai and has graduated from the London School of Economics, Fudan University, and the University of York. She owns 25 WLD. She tweets as @egreechee.

Tanzeel Akhtar

Tanzeel Akhtar has contributed to The Wall Street Journal, BBC, Bloomberg, CNBC, Forbes Africa, Financial Times, The Street, Citywire, Investing.com, Euromoney, Yahoo! Finance, Benzinga, Kitco News, African Business Magazine, Hedge Week, Campden Family Office, Modern Investor, Spear's Wealth Management Magazine, Global Investor, ETF.com, ETF Stream, CIO UK, Funds Global Asia, Portfolio Institutional, Interactive Investor, Bitcoin Magazine, CryptoNews.com, Bitcoin.com, The Local, The Next Web, Mining Journal, Money Marketing, Marketing Week and more. Tanzeel trained as a foreign correspondent at the University of Helsinki, Finland and newspaper journalist at the University of Central Lancashire, UK. She holds a BA (Honours) in English Literature from the Manchester Metropolitan University, UK and completed a semester abroad as an ERASMUS student at the National and Kapodistrian University of Athens, Greece. She is NCTJ Qualified - Media Law, Public Administration and passed the Shorthand 100WPM with distinction. She does not currently hold value in any digital currencies or projects.