Bitcoin Forum

One of the news topping today's headline is the one about Square (A payment firm run by Jack Jorsey) added over $50M (~ approx. 4709 BTC) to its portfolio.



Square becomes the second US-based cooperate organization after Microstrategy to invest in Bitcoin.

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Jack has always been a huge fan of Bitcoin and one of the first few public figures to openly embrace Bitcoin and its technology. So I'm not really surprised with this move. This could be good and bad news for the crypto community.

• Bad news: If more companies keep buying huge stacks of BTC, They might own enough to become manipulative and do things their own way.
  

 

• Goodnews : Bitcoin is getting the much needed attention and soon enough, more companies would buy in and the value would increase ~ possibly to everyone's dream price of $50,000 or more. Also, If these companies integrate Bitcoin to their products. For example, Square processes billions of dollars worth of transactions  yearly.

What do you think about this? Feel free to share.

Update: Bitcoin is up 2%+ since the news was released and the market is starting to look greenish again  :)

Does this mean they already purchased it back in Q2 but announced just now?

There's still a possibility of another tweet from Trump that caused it to drop again though. Nevertheless, it is nice to see that it tries to break the short-term downtrend and push up to $11k again.

I don't think the bad news is going to be that impactful knowing that in order to be manipulative, you should have incredibly enormous stacks of Bitcoin, and I doubt that companies that are investing in Bitcoin would collude together for their benefit. It defeats their initial goal in which thinking Bitcoin is the currency of the future.

I do believe that when companies start doing something like this, it's going to get more people in and learn more about it. It's going to be beneficial for everyone, and as long as they don't get scammed, Bitcoin is going to the moon. ;)

With Square's Cash App, it's going to be more impactful for them. That's the excellent news for use crypto enthusiasts.

Square's $50M allocation is not that huge of an allocation compared to MicroStrategy's $425M; also taking into consideration that Square's marketcap is at around 80 billion while MicroStrategy is only at 1.5 billion.

I really don't blame Jack Dorsey though, his shareholders would probably give him a lot of flack if he invested a huge sum of money in a risky unproductive asset. If anything, I see this only as a PR move by Dorsey as some bitcoiners on Twitter are pressuring him to have more skin in the game lol.

AFAIK, this has been their activity. They're known for accumulating before the pandemic. I've looked for some old articles and found one from 2018 and I think there's older than this but not later than the bull run of 2017.
(https://www.reddit.com/r/Bitcoin/comments/aw5art/square_bought_over_10000_btc_in_q4_2018_only/)
(https://cointelegraph.com/news/report-squares-cashapp-and-grayscale-consumed-over-50-of-bitcoin-mined-q1-202)

The truth is, manipulation will be inevitable when the time come. Imagine when those big companies cut huge portion of Bitcoin and hold, this will enable them manipulate the market at self-will. Although, this will be a tough one because many companies will get involve and be made competitive.  
This will definitely happen when mass adoption set in (increase in Bitcoin price). The current positive movement in cryptocurrencies will give a surprise to the world and companies will embrace the power of cryptocurrency in which Bitcoin will be the lead.

Well established companies have their own investment strategy and you can't say exactly that everyone of them will follow the way of manipulation. I am not seeing any risk factor here where its a good sign that famous business platforms are joining the bitcoin community with positive thinking. You have to keep in mind that only a small amount of people have knowledge about bitcoin and its use. Even worldwide governments are taking time to study about bitcoin before making it legal for their citizens. In a situation like this when companies like square join the bitcoin family by purchasing huge amount then obviously its gonna put positive effect on other companies and if I am not wrong then lot more companies are planning to start their journey with bitcoin.

Investor like them never run after hyip or waste their time to manipulate market. You may have seen that its only 1% of their total asset and hopefully they will invest more in the upcoming days. You have already mentioned on your post that market have started to be green and i don't think anyone will take it as a bad news. So, definitely you can expect bitcoin positive price and community development in the near future.

Unfortunately, this is inevitable. Humans are greedy. There will always be at least one who'll want to have more than the others do. As Bitcoin gets more and more adopted, more Bitcoin than ever before will be in the hands of the wealthy. I guess there is no way we could evade wealth inequality even with BTC - but at least it's decentralized.

Well, the bolded part is quite contradictory to your bad news. :D The value of Bitcoin hitting $50k or more is not far-fetched. We're quickly approaching the moment where the world will have its first trillionaire ever.

While the increase of Bitcoin's price makes me happy, I wouldn't be that excited about it. We're known to have unnecessarily quick pumps after breaking news that most of the times end with quick drops as the hype ends.

Dorsey has always been a bitcoin bull so there's no surprise that Square would acquire some bitcoins along the way. Besides, $50m is a small sum to ask for the marketcap of the payments company. This might just be a very small gamble that they are taking and to possibly influence positive bitcoin price movement too, considering that this somewhat changes the traders' perspective on the current events that's happening within the cryptosphere. Surely this acquisition won't hurt the bank, and might even pay more in the coming years so this is just a low-risk, high-reward gamble by the Twitter boss.

Drop in the sea of Bitcoin buys, but yeah, okay I get it, still a big endorsement of one prominent guy for Bitcoin but you know, this is just a "Bitcoin guy buys more Bitcoin" story;)

And don't worry about companies buying more Bitcoin, there will always be some left. Besides, who's to say they're buying actual Bitcoin;)

Owning Bitcoin does jack fuck for control of Bitcoin.

If Bitcoin was POS... then yes, but with POW.... Owning Bitcoin is NOT like having voting shares in a company.  I personally much prefer the POS model of ownership and "voting rights".

If you buy 1 million Bitcoins, you don't get 1 million votes of 21 million.  You get a bunch of imaginary internet stuff you can't touch that hopefully at least one other person in the world values and thinks they could sell to another person!

Good thought here. I guess it would be the case with us as well if we were the shareholders. I mean I will freak out the second minute if CEO that company announces something like this.

But again if they had pre-updates on this agenda then it would be actually positive news for me since I would already know that it will hike the bitcoin prices somewhat. This way I can make some profit due to the actions of this step.

Obviously this is temporary and single shot. It may or may not be good in long terms.

Nothing to sneeze at for sure. I'd love to have 50 million worth of BTC in my portfolio.  It is great to see people having so much fate in Bitcoin though!

Welcome to free markets. Big players will always have a significant market advantage compared to the small players like us. Only thing we can do is to hope for more adoption to hopefully potentially decrease the market influence of these huge players. Once bitcoin's marketcap becomes big enough and the allocation becomes really spread out, they won't have that much influence anymore.

Yep, we are still at the point where any public endorsement by prominent figures is important and helpful. Maybe in 10 years no one will care if some company buys $50M worth of Bitcoin, but today it's clearly enough to move the market.


I don't think that consumers are tracking the investment actions of companies and make some decisions based on that, so it won't cause mass adoption, but it would influence adoption among investors.

Was wondering why when I checked today bitcoin was @ $10490 the same as yesterday and then all the sudden popped to $10920 within the hour of checking. :o
Times like this does show the price of bitcoin is heavily sided with what big money has to say. :-[

luckily bitcoin has a strong algorithm called proof of work which is unlike the shitty PoS meaning when you own a lot of bitcoin you don't gain any kind of edge whatsoever.
the only thing they can do by owning a lot of bitcoin is to dump it and cause a temporary price crash which doesn't make sense because why did they buy it in first place to dump later?

the only real bad news is that as more and more bitcoin is being bought (by anyone) there will be less of this limited currency and at a much higher price for the rest of us to buy.

This means they have huge stash of bitcoin by now. It will give confidence also to other people as known businessman is openly stating the purchase of bitcoin. People just need to educate themselves to appreciate the benefits brought by bitcoin or crypto. At least we are reading another positive news not the news relating to hack or scam.

It is a free market. Why haven't they done the same with Gold or other scarce assets? It is because they can't and it wouldn't be feasible. A high percentage of Bitcoin supply is held in cold wallets and not kept on exchanges as liquidity. If entity X decides to purchase enough BTC to manipulate the market, the market price would sky rocket before getting 'satisfied'.

I doubt they only do this now, of course these tech related companies knows what is in the air, strategies are being studied to deal with new things like bitcoin. I do really believe that people like Elon Musk, Jack Dorsey and other wealthy people invested pretty decent amount of money in bitcoin, even Craig Wright lol what's frightening about this is that they might have huge impacts in the market once they accumulate more than 10% of total bitcoin.

Indeed, it slightly makes the price of BTC to go up, but this movement is still not sure that bitcoin will go up again, because the resistance position of 11000 has not been broken until now.

But this gives a sigh of relief to keep HODL in bitcoin especially with pandemic conditions like this.

More big players are getting into the market regularly. Following this will be the entry of more number of large scale corporate networks to get into bitcoin. When large volume of bitcoin gets accumulated between few number of users, it becomes an easy task to manipulate the market. For now the buying of bitcoin isn't a big news, because more such incidents is gonna happen in the falling years.

Let's see if the pandemic really turns itno a BTC pump.

I'd rather expect it to follow S&P500 and dump again along with the stocks. Despite that I hold my bitcoins.

We have some big news comming up like the election in the US and the possible threat of another covid shutdown with the growing number of deaths around the world.,

We can't really control these people from not buying it because this is a free market. We don't really know if they are really just holding the amount of bitcoin stated in the news. It is just their advantage to have a big net worth from us and for sure they just want to get a profit also. Let's just think of the positives that they can help bitcoin price grow more because of their famous image in the industry.

Apparently so! I honestly thought the market's no longer prone to such sentiment moving but it does appear to still have an effect. Good news for those wondering if it's "too late" to get into Bitcoin for sure. And that includes guys like me who fully believe it's not too late, yet deep down we wonder if we could be wrong;)

Yes they do because they know how to do business. They are not just prepared but they have planned it all along. This type of news has always been in the reports whenever they do a purchase. But the reaction of the market and the people isn't that much. I've just noticed that this time, the reaction from the community is bigger than those purchases that they've made in the past. And what a coincidence, the market's up today and many would think that it's because of their move.

I think Jack Dorsey is a forward-looking man. He wouldn't have made such an investment if he didn't think he would make money. Twitter has a huge resource such as trend analysis, and the man, who owns it, doesn’t make such a big investment in vain.

It will always be prone to such headlines such as the stock market and any other market for that matter would be.
If elon musk said he is quitting tesla wouldn't you think there would be atleast some thing to happen to their stock price?
Of course their would, so is the same for bitcoin's price when it comes to such news.
People buying up bitcoin worth the hundred thousands will pump up the price I am sure.
It is up over $1k since the news hit the media and it has not really slowed down.

The crazy thing is that this isn't a huge company in the grand scheme of things and they only invested 1% of their reserves.  Imagine if Microsoft or Apple decided to put 5% of their reserves into Bitcoin...  Things could get crazy fast.  This news in itself isn't a game changer, but if it signals the beginning of the Corporate Bitcoin Rush, we could be seeing the start of what will eventually lead to the great bubble of November 2021.

Yes, we have seen companies putting their reserves on bitcoin already, and this could be the trend specially if bitcoin goes and end this year in the range of $12k-$14k. I'm sure some corporation will look at it early next year and me might see some mid to large corporation to join the Bitcoin Rush and see how it goes, until the next bubble and cash out some to make money for them. A blue print has been set, just a matter of time before we see some paradigm shift to corporate bitcoin.

I can't get all the fuss around this move by Dorsey. It was just a smart decision by a far-sighted man who, by the way, can afford buying that amount of $BTC. He just did what other big firms should have already done by now, so to me the question is not "Why did Jack do it?" but "Why didn't others do it yet?"
 

It certainly is a small amount, about 0.025% of circulating coins. And the company involved is a payment processor that is also venturing into crypto.
But all investors and traders needs are these small things to get the price moving upward. Bitcoin has been influenced by much smaller events.

As of why aren't microsoft and Google investing in Crypto, they are working with it, but they would not buy a good chunk unless the US government insures crypto would be a legal investment. It might be legal as of now but the regulations and limitations enforced by the government aren't showing an easy road ahead.

That's not true, bitcoin's maximum supply is 21million, and as of thi moment, bitcoin's supply is already at 18.5million.
If you compare that aprroxiamate of 4709 BTC to the whole supply, it is only 0.224% of 100% bitcoin supply.
Before someone or a company be able to manipulate bitcoin's price, they should hold much higher numbers of bitcoins.
And manipulating of the price isn't that easy, if companies will just focus to this, there will be might some changes to the company they own, either for better or for worse.

$50 mil. is not much capital but it causes people are crazy with the news.

See the image in Bitcoin Treasuries (https://bitcointalk.org/index.php?topic=5280947)
https://i.imgur.com/KJKEUWE.png

That website is opensource (https://github.com/nvk/bitcointreasuries.org) from Bitcoin Treasuries in Publicly Traded Companies (https://bitcointreasuries.org/) is a cool supplementary ingredient for your topic.

https://ip.bitcointalk.org/?u=https%3A%2F%2Fi.imgur.com%2F9afS8pA.png&t=618&c=gDejE7Tnh-d1zw

You're out of point dude, all I said was: if big companies get hold on good portion in Bitcoin then there will be a sort of manipulative possibility in market. Never said, square with little portion will have control. Aren't whales currently manipulating the cryptocurrency market now? Can you tell their percentage of their holdings for this manipulation?. Somebody will manipulate the market now and another tomorrow till the last Bitcoin get mined. "It's a free market for all".

it's an interesting turn of events. for years, everyone has been waiting for wall street (hedge funds, institutional traders, investment banks) to drive the next bitcoin bubble.

it never dawned on me until the microstrategy announcement that regular companies---not necessarily related to finance, nor in the business of investment---might start accumulating bitcoins and driving the next bubble instead. exciting times for sure!


here's another way to think about it: it's more than 0.025% of the entire circulating bitcoin supply, owned by a single company---a small company, at that. imagine if more companies, bigger companies, want to accumulate their own stash.

That is good news, for the company to team together and invest on huge amount of Bitcoin in the cryptocurrency exchange, which we all know that bitcoin is a digital assets and it keeps appreciate from time to time and is going to be breaking limit price in time coming in future.

I'm pretty sure that Jack will be buying more as soon as he allocates the money 8)

As it was mentioned above, he only bought a tiny part of all the bitcoin.