FinTech giant Square sent shockwaves through the online trading community with the announcement that they have invested a total of $170 Million into Bitcoin
The Jack Doresey-led firm had previously purchased $50 million worth of Bitcoin in a move that is believed to have contributed to the subsequent BTC bull run. After so many institutions and companies such as MicroStrategy, PayPal and Visa also shared plans to invest in the world’s most popular cryptocurrency, what does Square’s latest announcement tell us?
Arguably, Bitcoin investors at this time were taking a shot in the dark. Due to the volatile nature of cryptocurrencies, no one could have guaranteed that Square’s initial BTC investment would have led to such an impressive increase in price value. As many other major companies followed suit, however, it became clear that Bitcoin wasn’t coming back down to earth any time soon.
With Square now having doubled down on its crypto investment, we can see that companies’ belief in Bitcoin’s potential is getting stronger by the day. Although daily volatility can see BTC prices dropping slightly, the long-term picture looks rosy. Jack Dorsey, Square’s CEO and Chairman, even described Bitcoin as a potential ‘Native Currency of the Internet’.
Bitcoin’s price value soared back up past the $50,000 mark following Dorsey’s announcement. Earlier in the week, investors were fretting after a significant sell-off that saw the crypto struggling to surpass the $49,000 mark.
When will Bitcoin pass $100 trillion market value?
Bitcoin has been garnering much media attention over the past few months, with non-investors wondering whether they should start purchasing some BTC of their own. While it is near impossible to predict where Bitcoin will go within the next weeks, months and years, Michael Saylor, CEO of Microstrategy — a business intelligence firm — estimated that over the long-term, Bitcoin will surpass the $100 trillion market value benchmark. In the shorter-term, Saylor suggested that Bitcoin will overtake gold in terms of market capitalisation.
Microstrategy reportedly invested more than $1 billion in Bitcoin throughout 2020, making the company one of the earlier major investors in BTC. Saylor claims that Bitcoin’s volatility will decrease as its market value continues to rise. Similar to Dorsey, he suggested that Bitcoin could be the ideal solution for people who store their assets in savings accounts on their mobile device.
As the uses for cryptocurrencies continue to become more and more evident to non-investors, the sky remains the only limit for Bitcoin.
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