Dorsey says Block is no longer simply a payments firm

Jack Dorsey, the CEO of Square, has informed investors that the firm is no longer simply a payments organization.

With a strong focus on Bitcoin, the firm is entering the cryptocurrency and blockchain ecosystem. “We’re now operating in this world,” he adds.

“We’re not just a payments company anymore. Since our last investor day, a lot has changed.”

In 2009, Square, now known as Block was founded as a payment processor. At the time, the company’s primary focus was to develop a mobile phone credit card reader.

However, with Cash App, it has expanded its operations into peer-to-peer payments and bank-like services. Bitcoin was first integrated into Cash App in early 2018.

Dorsey has been a Bitcoin advocate for some time now. In March, he said that Bitcoin will become the world’s single currency within 10 years.

“The world ultimately will have a single currency, the internet will have a single currency,” he said. “I believe that it will be Bitcoin.”

Now, it appears that Dorsey has doubled down on his Bitcoin bet. In a recent interview, he said that Block is no longer simply a payments business.

“We’re building something much bigger,” he says. “Our vision is an internet of value — where people can send money as easily as they send information

Square also serves as an FDIC-insured bank, while using its Cash App to provide stock and cryptocurrency trading services to clients; according to the website.

Last week, Dorsey’s other company, Twitter, also announced its Bitcoin project. The social media giant is working on a system that would allow its users to tip each other with Bitcoin.

Twitter has also been exploring the possibility of adding a Bitcoin payment option for its advertisers.

Last year, the firm changed its name to Block. To emphasize its commitment to establishing a decentralized ecosystem on the Bitcoin blockchain.

Block’s Chief Financial Officer Amrita Ahuja tells CNBC in an interview that;

“Calling Block a payments company is like calling Amazon a bookseller. We’ve grown in so many different ways across multiple dimensions.”

Even though fintech firms have recently struggled with increasing inflation rates, Block is currently outperforming its competition. She adds:

“Wall Street analysts are going to want to understand our growth profile, and our margin structure as a company — you can see based on our track record we are outgrowing the rest of the industry. We operate in a large and growing market and are still taking share.”

The cryptocurrency market has grossly underperformed in recent months. The total crypto market is down by more than 50% from the all-time high of $3 trillion recorded in November 2021.

Bitcoin, the world’s largest cryptocurrency by market value, is down by more than 60% from its peak of $65,000. Ethereum, the second-largest digital currency, is also down by over 50% from its all-time high of $4,200.

Bitcoin has also lost over 50% of its value over the last six months and now trades below $30k per coin. 

Ethereum has fared even worse, losing over 60% of its value since mid-May. These losses come despite a surge in mainstream interest and adoption of cryptocurrencies.

The Winklevoss twins, who are Bitcoin billionaires and early investors in the digital currency, say Bitcoin is similar to gold, not cash.

In an interview with Financial Times, they say Bitcoin is a “store of value” like gold. But not suited to be used as a day-to-day currency like cash.

They also say that the recent sell-off in Bitcoin is due to profit-taking by early investors. And that the long-term fundamentals of Bitcoin remain strong.

What do you think? Is Bitcoin a good investment? Let us know in the comments below.