Article written by Maggie Fitzgerald, CNBC
On Thursday, Square Inc, an American financial services company who focuses on mobile payments, bought 4,709 bitcoins, worth approximately $50 million.
“Square believes that cryptocurrency is an instrument of economic empowerment and provides a way for the world to participate in a global monetary system, which aligns with the company’s purpose,” the company said in a release.
Bitcoin in 2020
BTC did not drop below $5,000 during the pandemic, with the digital currency showing strong resilience despite the recession.
“We believe that bitcoin has the potential to be a more ubiquitous currency in the future,” said Square’s Chief Financial Officer, Amrita Ahuja, in a release. “As it grows in adoption, we intend to learn and participate in a disciplined way. For a company that is building products based on a more inclusive future, this investment is a step on that journey.”
Square founder and CEO, Jack Dorsey, is a advocate of the digital currency, saying in 2018 the cryptocurrency will eventually become the world’s “single currency”.
Square has enabled it clients to buy bitcoin on its Cash App since 2018.
Bitcoin’s 11-year existence has been filled with extreme volatility. However, despite its high transaction costs, many investors believe in its store of value or potential as a “digital gold”. Currently, most investors use Bitcoin as a hedge against market volatility.
With global debt levels reaching astronomical levels as a result of the fiscal response to the global pandemic, as well uncertainty around the ongoing US/China trade war, Bitcoin may become more widely accepted as a global currency (even with the plus volatility).
Works Cited: