Bitcoin Just Got a Big New Buyer. Should You Follow Its Lead?
The price of Bitcoin (CRYPTO: BTC) is primarily determined by the law of supply and demand. Since there's a fixed supply of the cryptocurrency, growing demand will lead to a higher price. And demand could be increasing due to a big new buyer.
Jack Dorsey, the CEO of fintech Block (NYSE: SQ), devoted his entire first-quarter letter to shareholders to talk about Bitcoin. Among his comments, he noted Block will commit to using 10% of its gross profits from its various Bitcoin-related products to buy Bitcoin as an investment every month.
For the first quarter, Block's Bitcoin gross profit was $80 million, which would result in an investment of $8 million in Bitcoin under the new plan. That number is an increase, though: It's first monthly purchase in April totaled $4.4 million.
Source Fool.com
