One of the big stories centering on bitcoin during the latter half of 2020 was the fact that Square – a company operated and owned by Twitter founder Jack Dorsey – has purchased a large sum of it.
Square Has Bought Bitcoin – So What Have We Learned?
Last month, the company announced that it had made a $50 million investment in the world’s number one cryptocurrency by market cap, and that it had also earned quite a bit of bitcoin-related revenue during its final quarters of 2020. This is a company that has consistently pushed bitcoin, and it doesn’t appear bent on stopping anytime soon.
Square released a statement explaining:
We believe that bitcoin has the potential to be a more ubiquitous currency in the future… Bitcoin, for us, is not stopping at buying and selling. We do believe that this is a transformational technology for our industry, and we want to learn as quickly as possible.
One of the most important points of this recent Square purchase is the fact that the company is primarily interested in the decentralized nature of bitcoin. The company, along with several other financial and tech firms, is looking for ways to take power away from centralized, traditional banks and put it back in the hands of individuals. This is the primary goal of bitcoin, and now companies such as Square are also looking to make it part of their own unique ideals and protocols.
However, entrepreneurs also have a lot to learn about this recent investment given that Square has also put a lot into bitcoin due to rising inflation. At the time of writing, currencies such as the US dollar have been weakened thanks to a surge in coronavirus cases, and so long as the pandemic continues, we are likely to see centralized units of finance flail about as they try to reach the surface.
Centralization May Not Be the Answer
The fact that inflation has become such a real threat is another push for a decentralized financial space. Granted all currencies remain centralized and issued by traditional institutions, they will always be vulnerable to economic problems. However, bitcoin remains on its own turf. Granted that it’s value is largely based on aspects such as supply and demand, the currency is not likely to experience the same problems as USD and other traditional currencies, which explains why the asset has more than tripled since mid-March.
Bitcoin, throughout most of 2020, has proven itself to be an asset that can likely garner strong returns for its holders. Anyone who invested in bitcoin when it first fell below $4,000 about eight months ago is likely raking in massive rewards, similar with those that were earned in 2017 when the asset first hit its all-time high of roughly $20,000 per unit, and entrepreneurs and investors could learn a thing or two about Square’s interest and push for BTC.