Bitcoin's Dual Identity: Jack Dorsey's Push for Global Currency vs. Institutional Investment Surge

In 2025, Bitcoin stands at a crossroads. Its identity is no longer confined to the speculative fervor of early adopters or the volatility that once defined its market. Instead, two competing narratives dominate: one led by Jack Dorsey, who envisions Bitcoin as a global, censorship-resistant medium of exchange, and another driven by institutional investors who treat it as a store of value akin to digital gold. This duality raises critical questions for investors: Is Bitcoin's future as a functional currency, an investment asset, or both?

Dorsey's Vision: Bitcoin as Everyday Money

Jack Dorsey, co-founder of Twitter and CEO of Block Inc., has consistently championed Bitcoin's original intent as peer-to-peer electronic cash. His advocacy has taken concrete form through Block's ecosystem, including Cash App, Square, and Bitkey. By 2026, Dorsey aims to enable zero-fee Bitcoin transactions for daily purchases, such as buying coffee, leveraging the Lightning Network to address scalability concerns, according to a Cointelegraph report. Block's 2024 initiatives, like Bitkey-a self-custody hardware wallet-further aim to democratize access to Bitcoin while reducing reliance on centralized custodians, according to a HokaNews article.

Dorsey's push extends beyond technology. He has lobbied for policy reforms, including a de minimis tax exemption for small Bitcoin transactions, to incentivize its use as everyday money, according to an Ecoinimist article. However, his vision faces skepticism. Critics argue that his earlier support for small block sizes during the 2017 Block Size Wars inadvertently reinforced Bitcoin's identity as a speculative asset rather than a transactional currency, according to a Bitcoin Protocol piece. Despite this, Dorsey remains undeterred, betting on Bitcoin's potential to bridge the gap between its current role as a store of value and its intended function as a universal digital cash system, according to the Coinranking blog.

Market Trends: Investment Asset or Medium of Exchange?

Bitcoin's dual identity is reflected in diverging market trends. On one hand, institutional adoption has surged. As of Q3 2025, 172 public companies hold Bitcoin in their treasuries, with total holdings valued at $117 billion, according to Cointelegraph. Firms like MicroStrategy and Marathon Digital have aggressively expanded their Bitcoin reserves, treating it as a strategic asset to hedge against inflation and diversify corporate portfolios, according to a Bitcoin Magazine report. This trend is amplified by record institutional demand for Bitcoin ETPs and derivatives, with global Bitcoin ETPs acquiring 944,330 BTC in 2025-surpassing the total purchased in 2024. Analysts suggest this accumulation could create a supply imbalance, potentially driving prices upward in the medium to long term, as noted by Cointelegraph.

On the other hand, Bitcoin's adoption as a medium of exchange remains nascent. While the Lightning Network now processes over three million daily transactions with minimal fees, according to the Coinranking blog, only 36,000 businesses globally accept Bitcoin for direct purchases. Challenges like price volatility and regulatory uncertainty continue to hinder mainstream adoption. Yet, in regions with unstable currencies or limited banking access, Bitcoin is increasingly serving as the backbone of circular economies, offering a lifeline for unbanked populations, as observed by Bitcoin Magazine.

Investment Implications: Navigating the Duality

For investors, Bitcoin's dual identity presents both opportunities and risks. The institutionalization of Bitcoin-as evidenced by its inclusion in corporate treasuries and ETPs-suggests a maturing market. Price forecasts for 2025 range between $69,550 and $144,710, contingent on macroeconomic conditions and regulatory clarity, per the Coinranking blog. However, these projections assume Bitcoin remains primarily a speculative asset. If Dorsey's vision materializes and Bitcoin gains traction as a daily currency, its utility could further stabilize its value, reducing volatility and broadening its appeal to retail users, as Cointelegraph has reported.

Conversely, the tension between these narratives could create market volatility. For instance, if Bitcoin's adoption as a medium of exchange outpaces its role as an investment asset, institutional investors might reassess its risk profile. Conversely, if regulatory hurdles or technical limitations persist, Bitcoin could remain trapped in its current identity as digital gold.

Conclusion: A Pivotal Year for Bitcoin

2025 is a pivotal year for Bitcoin. Jack Dorsey's relentless advocacy for its use as a global currency aligns with broader market trends that highlight its potential beyond speculation. Yet, the surge in institutional adoption underscores Bitcoin's evolving role as a legitimate asset class. For investors, the key lies in balancing these narratives: recognizing Bitcoin's dual potential while remaining mindful of the challenges that could shape its trajectory. As Dorsey and his critics debate Bitcoin's identity, one truth remains clear-its future will be defined by its ability to adapt to the needs of a rapidly changing financial landscape.