@coppergaz
I don't think the market is stupid enough to correlate the two. Only the select few who post about it here. The fact remains it's contribution to earnings is marginal. I have posted about it before. It's a "Feature" of cash app that needs to be there and is material to the future of block.
Further to the vision, here is a really good write up on the future of Jack and Block. I'll make this point again, I firmly believe this is not the time to be selling block shares. Growth is likely to accelerate from here and you are getting a huge discount from 3 months ago. I would also expect a series of announcements in the not to distant future given Jack's departure from Twitter. More clarity on the plans could really fuel the growth narrative.
Looking Ahead
Now that he’s stepped down from his role as CEO of Twitter and will likely transition off the Twitter, board when his current tenure comes to an end in May 2022, Dorsey has more time to focus on Block. I expect a flurry of activity to come in the months ahead driving Block forward in the bitcoin and decentralized finance space. I have not been briefed on Block’s strategic direction, but it is not hard to envisage a future where the company provides the retailer rails for companies globally to start to accept Bitcoin. Square has built a formidable presence in the hands of small and medium-sized businesses, as well as empowering artists and creators, adding bitcoin on/off ramps to this network is a logical next step. As nation states start to follow El Salvador’s lead and start to plug directly into the Bitcoin network and transition bitcoin from an investment asset into a true currency, then which company is better placed than Square to provide the merchant infrastructure?
Another area I see as a potential focus for the newly named Block is the area of non-fungible tokens or NFTs. The current use case for this technology is a new imagining of digital artwork and ownership, with JPEG ownership being recorded on underlying blockchain networks. The world of NFTs is gaining traction in the artworld as the likes of Beeple and Banksy create a stir and get oversized press coverage as a result. Although this market is interesting, I see it as only the first step for NFT technology. Interesting use cases abound for establishing ownership on an immutable blockchain. Take for example a market dear to my own heart, high end watches. The ability to track ownership, add value to the service and warranty lifecycle, and eradicate the incentive for thieves to steal watches is a solid use case for blockchain and NFT functionality. When you consider that Rolex allegedly creates one million watches a year priced starting at $5K and upwards, and that they are only one manufacturer, you can see how the total addressable market, predicted to be worth $9.3 billion by 2025 ,could potentially be transformed. Watches and art are just the tip of the iceberg. NFT title documents for cars, real estate, and many other examples exist, and this is where I expect Block to focus in the months and years ahead.
Imagine a world where car inspection documents are maintained on a blockchain network and can transfer seamlessly when the title of a car moves between owners, as the title document also exists on a blockchain infrastructure. Which company would be the perfect company to provide the in-dealership or inspection center point-of sale-based system? I’m betting that Dorsey will soon be arguing that Block is that perfect company. The total addressable market for this blockchain fueled marketplace is not currently quantifiable, but when you couple the immersive nature of the metaverse and how goods will be bought and sold within it, and consider which companies will provide the merchant networks, it’s not at all difficult to see why Dorsey is doubling down on Block and extricating himself from Twitter.
https://futurumresearch.com/research-notes/square-becomes-block-what-is-next-for-jack-dorsey/
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