Bitcoin has reigned supreme within the crypto space for years at this point and even with all the ups and downs of the industry, it continues to be popular. 2024 has been an especially big year for the token as it recovers from its previous bear market.
January 2024 saw the approval of the much-pursued spot Bitcoin ETF and this triggered a bull run that has seen the token reach a new all-time price high. As crypto news has reported, Bitcoin is being used for many more non-investment purposes like gambling on an anonymous casino to paying for everyday expenses. Still, as we’ve seen many times in the industry, the question remains of whether now is the right time to invest.
According to legions of Bitcoin lovers, now is very much the best time to get your hands on the token, and this includes Block CEO and former Twitter/X CEO Jack Dorsey. Block released its first-quarter letter to shareholders earlier this month and a good chunk of it was used to discuss Bitcoin.
More specifically, it was used to explain how the company would be putting its money where its mouth is and investing in the token. The letter, which literally begins with the question, “Why the hell are you all spending so much time on Bitcoin?”, delves into the current and future plans regarding Bitcoin.
Currently, under 3% of the company’s resources are allocated towards crypto-related projects and this investment has been recouped through CashApp’s Bitcoin exchange. As per the letter, this exchange is the fourth-largest income stream for CashApp. The reason why the company is so passionate about Bitcoin, it explains, is because it believes that an open protocol for money will help it serve people better.
Along with Bitcoin being a more preferred crypto compared to others in the market, Block says it firmly believes that the internet will have its own stable currency in the future.
Moving forward, the company will spend 10% of the gross profit it makes from its Bitcoin ventures on purchasing Bitcoin. This means that Block plans to stockpile Bitcoin tokens. The newsletter also explains that while Bitcoin has been a profitable venture thus far, this all goes beyond trying to make a profit.
“Historically and moving forward, our investment in Bitcoin transcends technology; it is an investment in a future where economic empowerment is the norm,” the letter says.
It is important to note that a good chunk of the newsletter was dedicated to Bitcoin, even though it is not yet a majority of Block’s operations. This bold decision on Block’s part also lends more legitimacy to the idea that Bitcoin is in a prime place for more investments.
The approval of the spot Bitcoin ETF means that there is more institutional investment in the asset than ever before and this could mean more widespread acceptance. This is besides other major industry developments like the recent halving and pro-crypto legislation being passed all over the world.
In terms of the current bull run cycle, Bitcoin has hit a new all-time price high which some believe will be followed by market corrections. Buying into the token now could secure not only short-term profit but long-term benefits as well by the next bull run.
For those who, like Block, are more interested in the connectivity of digital assets, Bitcoin offers this as well. It is the most widely used cryptocurrency, so much so that it is legal tender in at least one country. The industry has reached a level of maturity that even outside of chasing market highs and making a profit, the developments taking place in the ecosystem are a valuable incentive for any investor.
Conclusion
Investors might be conflicted about whether or not investing in Bitcoin is the right option and while no one can tell the future, there are some strong indicators. The token is just coming off one of its most profitable periods and its use cases, from gambling to investments, are only becoming more prominent.
And, as we’ve seen, some of the biggest companies in the world are willing to put a lot of money behind it, which should boost any investor’s confidence.