Square Could Spark Widespread Bitcoin Adoption
Earlier this week, Ethereum World News reported that Square, a fintech startup based out of San Francisco, had sold millions worth of Bitcoin (BTC) over fiscal 2018. In fact, since launching its cryptocurrency offering in early-2018, basically at the peak of the recent cycle, the Cash App, Square’s flagship application, made $166 million revenue from the sale of BTC. In Q4 alone, the company sold $52 million in the digital asset, even as Bitcoin fell through the floor in a seeming act of investor capitulation. Square’s BTC business is also clearly trending upwards, with the Jack Dorsey-led firm seeing this facet of its operations post bigger profits quarter-over-quarter
Per a breakdown of Square’s earnings from The Block, Cash App likely sold approximately 10,000 BTC during yesteryear, which is no small sum. This has led some analysts to keep their heads high, as it clear that there are infrastructure plays to accentuate this ecosystem is far from dead in the water.
Alec “Rhythm Trader” Ziupsnys broke down his thoughts on Square’s involvement with Bitcoin in a comment posted to Twitter. Sticking to his argument that the flagship cryptocurrency’s supply cap is primarily what gives it value, Ziupsnys wrote that Square sold 6.2% of the value of the 162,000 BTC mined last year. For one company, especially one that doesn’t center its efforts on the cryptocurrency space, this is evidently impressive.
Matt Odell, a prominent coder in this space, echoed Ziupsnys’ comment, replying with a link to one of his tweets on the subject matter. In the Twitter message, posted months ago by Odell, it was explained that during the next bull rally, it is more likely than not that the Cash App, one of the most popular mobile applications on the U.S. App Store, will become a key facet of the industry, as it will be an easy-to-use on-ramp that could spark widespread retail adoption. But interestingly, support for Bitcoin purchases and sales might just be the tip of the iceberg. Rumor has it that Square, with Bitcoin diehard Jack Dorsey at the helm, could become a platform for crypto-friendly merchants too.
Lightning Network May Come To Square
Per previous reports from Ethereum World News, Dorsey took to Bitcoin bull Stephan Livera’s podcast to confirm hearsay that his fintech firm was to introduce support for the Lightning Network, a scaling solution that promotes low-cost, near-instant, secure, and more private BTC transactions for everyone and anyone.
During the podcast, which also saw Lightning Labs chief executive Elizabeth Stark make an appearance, the Twitter CEO explained that Square’s integration of the scaling protocol is a matter of “when,” not “if.” Speaking on the rationale of eventually making such a move, Dorsey explained that his firm’s raison d’etre is to serve customers best, with Lightning only accentuating this goal.
He added that Square sees Bitcoin’s underlying nature as a currency, rather than solely a speculative asset. And as it stands, the widespread adoption of the Lightning Network is the most promising means to get to that end.
And with all this in mind, Ziupsnys noted that there’s a likelihood that Square’s Bitcoin efforts could be just as important for the BTC price and adoption than an ETF and Bakkt combined.
Photo by Dmitry Moraine on Unsplash