Nearly two months after it received “BitLicense” for the New York State, Jack Dorsey start-up company Square Inc has launched buying and selling of bitcoin in all 50 states of America bringing cryptocurrency to commons.
Square challenges Coinbase
With the Bitcoin transaction facility available in all fifty states, Square’s Cash App now competes with Coinbase, the leading consumer application for cryptocurrency purchases in the United States.
Square, which added bitcoin purchase and sale functionality to its payments app in late 2017, had slowly expanded bitcoin functionality in the time since. The simple mobile interface was made available to users in the select state. With the receipt of bitlicense from the New York Department of Financial Services, the company now has rolled out the facility of in all 50 states of the country. At the end of 2017, Square reported more than 7 million monthly active users, many who joined for the peer-to-peer USD sending service.
During its Q2 earning, Square reported it generated $37 million of bitcoin revenue this quarter adding it to more than $70 million in bitcoin-related activity in the first half of 2018. To quote from it earning a statement.
Total net revenue was $815 million in the second quarter of 2018, up 48% year over year. This includes $37 million of bitcoin revenue. Excluding bitcoin revenue, total net revenue was $778 million, up 41% year over year.
Square, which is best known for its dongle that helps small merchants accept credit cards, began officially offering Bitcoin purchases within its peer-to-peer payment service, Square Cash, in January, following a brief test program. During its Q1 earning it was reported that Square’ Bitcoin business was struggling to make money. Although it had pulled in $34 million of Bitcoin-related revenue last quarter—the bad news is that Square spent nearly as much to acquire Bitcoin in the first place. With this rollout, one can expect the company would make decent revenues in quarters to come.
Jack Dorsey’s love for cryptocurrencies
Jack Dorsey has always been in support of cryptocurrencies against all his critics. In January the company had added cryptocurrency operations which help the company net $200,000 from its newly-added bitcoin functionality. Dorsey was also quoted saying in favor of bitcoin and he believed that bitcoin may become the world’s ‘single currency’ and a dominant form of payment in a decade’s time.
“The internet will have a single currency. I personally believe that it will be bitcoin,” Dorsey was quoted saying.
He also has been reported saying the bitcoin has the potential to replace fiat currencies. Jacks love for cryptos could be seen when he had joined a company hackathon with an intention of finding a way to put bitcoin on his Cash payments card.
He was quoted saying while working on the Hackathon
“Can we build a system where using my Cash Card, which was on Apple Pay at the time, can I have bitcoin [on the card] and go across the street to the Blue Bottle in the Twitter building and buy a cappuccino with my bitcoin?”
With such a clear vision of Dorsey, Cash looks to have a long-term bet for Bitcoin and cryptocurrencies. And as Cash App completes every milestone like this one it is surely going to increase its revenue share from this vertical.
Will Jack Dorsey bullishness for cryptocurrencies bring a paradigm shift for cryptos? Do let us know your views on the same.
Nilesh Maurya has been associated for past 8 years as an Investment Banker with Omega Capital, a bespoke Investment Banking outfit having offices in Mumbai, New York, Singapore, and Dubai. He has been a regular contributor to business publications such as Business India and Market Express and has been a mentor to many start-up companies. Nilesh Maurya has been associated for past 8 years as an Investment Banker with Omega Capital, a bespoke Investment Banking outfit having offices in Mumbai, New York, Singapore, and Dubai. He has been a regular contributor to business publications such as Business India and Market Express and has been a mentor to many start-up companies. Follow him on Twitter at @KoinKing1 or connect with me on linkedin.