At first glance, $166 million in revenue from Bitcoin might seem like cause for celebration for a mobile payments startup. When that Startup is Square, which reported $3.3 billion in overall revenue, things become a little different.
5% is usually nothing to write home about. In Square’s case though, the opposite might be true. They only just introduced Bitcoin buys and sells in their app in November of 2017. Even more significantly, the service was not available in every U.S. state until almost a year later.
Therefore, in a sense, Bitcoin was not a notable force on the Square platform until late 2018. Considering this, Square netting $1.69 million because of Bitcoin in 2018 raises some interesting possibilities.
Just before they rolled out their Bitcoin service to the entire U.S., they received a BitLicense, which allows them to be licensed to operate cryptocurrency-related services in the state of New York. Whether or not they plan to leverage this towards a greater goal of perhaps becoming the first licensed mobile crypto bank remains to be seen.
Coinbase has made moves as if they plan to do so and yet they have not quite achieved such a status just yet. Regulatory agencies are not exactly known as being agile with such decisions, with good reason.
Cryptocurrencies stand as the biggest threat to dismantling the current financial system as we know it. Mobile banking is not far behind, especially when it is peer-to-peer based. Regardless of their impartial status, regulators have a vested interest in keeping the status quo.
If Square can succeed with crypto services in the midst of one of the worst crypto bear markets ever, who is to say they will not rocket toward the top of the industry in some way when the tough times end? Whatever happens, rest assured that Jack Dorsey will continue to determine the direction the app takes. Until that becomes clearer, perhaps risk-averse crypto investors might consider trusting in Square instead of newer, unproven crypto exchanges. Jack Dorsey and the Square team believe that Bitcoin will truly connect the world under one umbrella and it seems like they are willing to do anything to be on the forefront of that movement.
By: BGN Editorial Staff