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Will Block Allow CashApp Users To Be Paid In Bitcoin?

Block is adopting the Bitcoin Lightning Network for its cash app to make cryptocurrency transactions available to its 70 million users.

Block (NASDAQ: SQ), formerly Square, is enacting CEO Jack Dorsey’s vision of becoming a blockchain-first company. In the company’s latest move, its crypto-focused arm, Spiral, has integrated with the Bitcoin Lightning Network. 

What is the Bitcoin Lightning Network?

The Lightning Network solves one of the primary issues with Bitcoin — the speed and cost of transactions — which have traditionally been notoriously slow, but now, they will be made cheap and instant. This will allow Cash App users to send Bitcoin and other cryptocurrencies to digital wallets internationally, even allowing them to make purchases with merchants that are also set up on the network.

Looking towards the company’s influencer marketing strategy, it appears the company wants to make it possible for its users to even be paid in Bitcoin at some stage in the future if adoption becomes mainstream. Ultimate Fighting Championship (UFC) star Francis Ngannou has sponsored this recent move by the company, claiming that he will be receiving half of his next purse exclusively in Bitcoin.

What does this mean for Block investors?

Block has its routes in hardware and software point-of-sale solutions as well as its Cash App offerings, but the company is now visibly expanding outwards to create an ecosystem covering all financial needs for buyers, sellers, investors, and speculators alike. Whether it’s your cup of tea or not, Block is making sure it covers all ground when it comes to consumer wants and needs.

It’s important for all investors to know, however, that with exposure to blockchain and cryptocurrencies, there could be a bumpy ride ahead, given the well-known volatility and lack of regulatory clarity associated with these industries.

Could Block be a good investment right now?

Block is one of the companies that has been hammered by the continuous onslaught experienced by growth stocks in the last few months, and its shares are currently more than 50% below its all-time high. But, considering the usage growth of its segments and the overall adoption of cashless transactions that supported both consumers and businesses since the beginning of the pandemic, Block has been a primary beneficiary of the whole thing.

So, while valuations were certainly getting heated, Block’s rise isn’t completely unwarranted. A notable 51% compound annual growth rate (CAGR) in gross profit over the last two years might just spike the interest of investors that were keeping this one of their watchlists.

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