If all U.S. companies followed Square, $250 billion would enter Bitcoin

While a big move, there were some Bitcoin maximalists that criticized the one percent figure, mentioning that it was too small to make an impact in the increasingly-liquid crypto market.

As analysts later noted, if all companies followed Square's lead, a massive wave of capital would enter the Bitcoin space, easily pushing it to all-time highs.

What if everyone followed Square in purchasing Bitcoin?

This means that if each of these businesses followed Square's lead and deployed exactly one percent of their assets into Bitcoin, $250 billion worth of inflows will enter BTC. Of note, this "Excludes financial companies, institutional investors, governments & retail-globally."

Bitcoin, after all, currently has a market capitalization of just around $200 billion.

The effect suggests that for every fiat dollar invested in Bitcoin, the market capitalization of BTC increases by more than that dollar.

Chris Burniske, a partner at Placeholder Capital, once mentioned that his firm uses the range of 2-25x. Taking a low-end estimate of five times, the $250 billion that could enter the space if corporate entities followed Square would result in a growth of over $1.2 trillion for BTC's market cap, meaning prices would shoot past $50,000.

Although what Lee said was theoretical, Square is attempting to make it easy for its corporate peers to adopt Bitcoin.

It, alongside the other corporate adopter of Bitcoin MicroStrategy, released their respective resources and webpages to teach other companies and their CFOs how to invest in and store large sums of BTC. Both companies also explained why Bitcoin makes sense in the current macroeconomic environment.

Rew Kang, founder of Mechanism Capital, gave the following reasons why buying Bitcoin now makes sense: volatility has declined massively, inflationary trends are looming, yields in other markets are low, the stock market and other legacy markets have high valuations, and this space is getting validated by Wall Street.