Cash App’s Bitcoin Acquisition Strategy
Square’s popular mobile payment platform, Cash App, is making headlines with its ambitious strategy to acquire Bitcoin. Currently, Cash App is purchasing a significant percentage of Bitcoin’s new supply.
The Impact of the Bitcoin Halving
Each time Bitcoin undergoes a halving event, the supply available is cut in half. After this upcoming halving, Cash App is projected to buy 16% of Bitcoin’s new supply if it continues at its current purchasing rate. That’s quite a chunk!
Understanding the Halving
To put things into perspective, Cash App’s purchase now makes up about 8% of the new supply per quarter. However, with the halving on the horizon, experts suggest that their stake could jump to 16%. So what does this mean for future Bitcoin purchases and the market? One Twitter user noted that the effects of the halving are yet to be priced into the current market value. They explained:
“The halvening is NOT priced in.”
Price Predictions and Supply Chain
While Cash App’s buying prediction is ambitious, there’s a caveat: these projections don’t account for any potential price increases that could arise from the lower supply. As fewer Bitcoin are being generated, the market dynamics could shift, making it more challenging to maintain that 16% acquisition level.
The Growing Interest of Cash App in Crypto
Cash App is also revealing significant crypto enthusiasm through its revenue reports. For instance, in their Q3 2019 shareholder letter, they proudly announced a whopping $148 million in Bitcoin revenue!
The Bitcoin Countdown
As of October, a milestone was reached with the mining of the 18 millionth Bitcoin, with only three million left to be mined. This impending scarcity invites intrigue and speculation among investors and enthusiasts alike.
Conclusion: What Lies Ahead?
The intersection of Cash App and Bitcoin presents a fascinating scenario as we approach another halving. Keeping an eye on Cash App’s continuing Bitcoin purchases could prove insightful for those tracking the evolution of cryptocurrency and its market dynamics. Keep your digital wallets ready!
