Ask any group of investors their thoughts on Bitcoin (CRYPTO: BTC) and you're likely to get some widely varied responses.
Legendary investor Warren Buffett, for example, is not a fan. Warren Buffett has not invested in cryptocurrencies and the Oracle of Omaha is unlikely to do so in the future.
Block Inc (ASX: SQ2) CEO Jack Dorsey, on the other hand, said this week that he believes Bitcoin will "ultimately become the native currency of the internet".
Here's why Doresy is doubling down on the world's first crypto.
Block to reinvest some profits into Bitcoin
Block reported its quarterly results on Friday.
Spurred by Block's 22% year on year gross profit increase to US$2.09 billion, S&P/ASX 200 Index (ASX: XJO) investors responded by sending the Block share price up 9.9% by market close.
ASX 200 investors will also have been watching what Block's intentions are with Bitcoin.
In a letter to shareholders, Dorsey said:
We believe the world needs an open protocol for money, one that's not owned or controlled by any single entity. We believe bitcoin is the best and only candidate to be that protocol, and to ultimately become the native currency of the internet.
He noted that currently less than 3% of Block's resources are dedicated to Bitcoin-related projects.
Moving ahead, Dorsey said the company would invest 10% of the gross profit it derives from its Bitcoin-related products every month to buy Bitcoin as an investment.
With the Bitcoin price soaring this year (to US$59,501 as at Friday afternoon), Block's US$220 million investment in the world's top crypto was worth US$573 million at the end of the quarter. Or up some 160%.
Dorsey spruiked the benefits of an open protocol for Block, saying "An open protocol for money helps us serve more people around the world faster."
Dorsey said that Block built its Cash App platform in part to help make the digital token more accessible. He noted that since its launch, Cash App Bitcoin products have "generated 3.3% and 4.2% of Block's gross profit in 2022 and 2023, with only 0.7% related expenses".
In the quarter just past, the company reported a 25% increase in its Cash App gross profit to US$1.26 billion.
According to Dorsey, "The internet will have a native currency. It's just a matter of time."
And he believes that the advance of artificial intelligence (AI) will drive this adoption.
"Artificial intelligence systems and agents will have to transact, and the most efficient way to do so will be a common protocol for money and movement," he said.
Dorsey acknowledged that it will be a while yet for Bitcoin to fulfil this destiny.
"This existing and emerging financial systems will operate in parallel for some time," he said.
However, he added, "There's an opportunity to build cohesive and regulatory compliant connection between these two worlds."
