Root
Press Crypto
Crypto for everyone Square makes Bitcoin (BTC) suitable for the masses

Crypto for everyone Square makes Bitcoin (BTC) suitable for the masses

Do repost and rate:

Rated:132

Bitcoin has what it takes to become a global reserve currency in the long term, said Square founder and CEO Jack Dorsey back in 2018. His payment service provider Square is now apparently setting the course for this scenario and recently, surprisingly, bought bitcoins on a large scale. Why increasingly large companies are eyeing the young crypto market.

In the crisis year 2020, the world of digital currencies is consolidating. Last but not least, PayPal's new crypto service is the latest example of how entry into the crypto world is made suitable for the masses. There is a change in the market. Trading with Bitcoin and Co. has also been possible for a long time with competitors such as Robinhood Markets or Square, Inc. The latter is the second company of Twitter co-founder Jack Dorsey, who founded the mobile payment service in 2009 after being temporarily ousted from Twitter. He is the largest shareholder with a share of 24.4 percent. The San Francisco-based company sells readers for smartphones and tablets that merchants can use to accept card payments on their mobile devices. Square has now bought around 4,709 bitcoins, valued at around $ 50 million, according to a company statement. This means that the payment intermediary is taking on a pioneering role after MicroStrategy when it comes to Bitcoin.

The Bitcoin Growth Market: A Smart Move

The company justified the move by stating that it believes in the potential of bitcoin to continue to grow in the future: "Given the rapid evolution of cryptocurrencies and the unprecedented uncertainty of macroeconomic and monetary conditions, we believe that the time is right for us to expand our balance sheet, which is for the most part in US dollars, and to make a significant Bitcoin investment, ”the press release said. $ 50 million investment is definitely not a small volume for the payment service provider. Not even if Square now has sales of $ 5.8 billion. The value would even correspond to around 1 percent of the total assets that Square had reported at the end of the second quarter. But Square “believes that Bitcoin has the potential to become an omnipresent currency in the future,” said Amrita Ahuja, chief financial officer of Square. One wants to participate significantly in the growing acceptance of the digital currency and learn from it.

In addition, Bitcoin is seen by Square as an "economic independence tool" that enables people around the world to participate in a global currency system. This is in line with the purpose that Square wants to fulfill as a company.

Square is a very innovative company overall and Bitcoin is part of a new infrastructure that is a clear growth market. The fact that Square is now investing in Bitcoin itself may have other, more speculative reasons. Nevertheless, the general acceptance of peripheral areas and other currencies is a potentially valuable step towards further growth. Ultimately, Square can benefit from every transaction that takes place. Accordingly, it makes sense to focus on young markets that can potentially have much further growth potential. As the current key currency among the cryptocurrencies, Bitcoin has great potential in terms of transaction volumes. This can have a positive impact on Square's operations.

However, cryptocurrencies aren't the only area Square is open-minded about. For example, the company also supports the cannabis industry, which could also result in gigantic growth in transaction volume. Betting on young, high-growth markets could therefore be a clever move overall.

Squares Cash App enables Bitcoin purchase

For the avowed crypto fan Jack Dorsey and his company, it is by no means the first foray into the world of digital currencies. As early as 2018, users in the USA can buy, hold and sell bitcoins via the peer-to-peer app “Cash”. In addition, Square has been supporting the cryptocurrency sector since 2019 with an independent team on open source projects for the further development of the Bitcoin network. It was only in September that the payment broker announced the founding of the “Crypto Open Patent Alliance” (COPA), a non-profit consortium for the protection of the open source character of cryptocurrencies, which bundles the patents of the individual members and stores them in a crypto database provides.

A shield against crypto patents?

The offer of the Crypto Open Patent Alliance should sound tempting, especially for small companies or crypto start-ups. Larger companies that already have many of their own patents are likely to enjoy fewer advantages. So the question arises: What does Square get out of it? The payment service provider could well have a few ulterior motives in his non-profit project. It is speculated that the company may have realized that it couldn't build a scalable, high-throughput product without stumbling across a patent-protected innovation. So Square may now hope that companies will join the Crypto Open Patent Alliance whose patents could be useful to them themselves. Whether this should really happen remains to be seen.

The speculative top pick

Square shares have had a fantastic run over the past few months: they have more than quintupled since the crisis low in March and hit a new all-time high of $ 190 on October 13. It was not able to maintain this level at first and had to give up 7.5 percent of the profits over the course of the week. Nevertheless, the upward movement has slowly continued since Friday. The price jumps around 2.4 percent and is currently at $ 176.77.

Square shares outperform the market

Overall, Square shares achieved a return of 238 percent in the 2020 calendar year. The share has thus clearly outperformed the NASDAQ technology index, which also rose by 47 percent (as of December 31, 2020). In addition to the strong chart image and the fundamental growth trends of the “overperformers”, the openness to new technologies such as Bitcoin and the potential for global expansion also make us optimistic in the long term. Last but not least, Square bought up a few smaller startups. These include, for example, the web hosting company Weebly from San Francisco, which was acquired in 2018. Invested investors therefore stick with the goal and stop, newcomers can access it on weaker days.

Pro / Contra Square Inc. share ( A143D6)

That speaks for an investment...

Relies on young growth markets such as Bitcoin or the cannabis industry
Potential for global expansion
Clever investments in young growth markets strengthen competitiveness
Strong growth

That speaks against it..

Lack of high-volume, international business
Higher credit risk than Visa
With a P / E ratio of just under 80, the share is not exactly cheap

Don?t Miss MY SWISSBORG PROMOTION!

Swissborg gives everyone who register to the wealth app and deposit 50 € (depositing FIAT is recommended) a reward ticket with a random value ranging from 1 to 100 € in BTC.

But only, if you use my links and follow the described steps below. If you do so, i get a second ticket with the same random BTC amount. When you use my link...

I give you 50 % of my reward ticket i am getting from your subscription for free!

All you need to do is this:

1. Download the Swissborg Wealth App (mandatory)
2. Deposit 50 €, deposits on Swissborg are free so you can withdraw them later. (Withdraw costs about 1 €, with the earning from the reward you'll gonna make either a plus or a break even) (mandatory)

Note: If you only download the Wealth app you only get 10% of my ticket

3. Download the Swissborg Community App (mandatory)
4. Apply the Code: OA62FUI (mandatory)
5. Contact me via Discord (Overmind#0055), Telegram (@SwissborgSwarm) or mail ([email protected]) (preferred) for verification and to get your BTCs! (mandatory)

Note: If you only download the Community App and apply the code i say thank you!

Have fun earning free BTC!

Do not miss the chance to get up to 150 € in BTC for free!

This promotion begins on January 2021-01-01

I Paid every participant: Check in the comment section of these posts for a proof of my payment to them:

Proof 1

Proof 2

Proof 3

Proof 4

Proof 5

Thank you for participating!

Note: I pay in any currency you like :). And the withdrawal fee from Swissborg Wealth App to your wallet are free of fees. I pay them. Happy free Crypto earning!