Bitcoin [BTC]: Jack Dorsey’s Square projected to post record BTC sales on Cash App; may surpass mining rate
The involvement of various personalities from mainstream industries into the world of cryptocurrencies has always yielded positive results. Major figures like Elon Musk, Founder of Tesla and SpaceX, as well as Jack Dorsey, CEO of Twitter, have supported the use of cryptocurrencies and have even dabbled in it.
Dorsey’s crypto push was highlighted after his company, Square, released its Q1 report that showed Square posting its highest ever revenue, $65.5 million. The company generated such figures thanks to its Cash app, which allows users to transact using Bitcoin.
The general euphoria aside, investigations reveal that Square’s product will play a much bigger role towards the adoption of cryptocurrencies, than what is presently anticipated. Projections show that if BTC sales on Square Cash maintain their current growth rates, then by the next Bitcoin halving in May 2020, roughly 2 BTC will be purchased on Square Cash for every new BTC that is mined.
As pointed out by Yassine Elmandjra, a cryptocurrency analyst, Cash App’s dominance will steadily rise till Q3 of 2020, when Cash App will outstrip any other sales record. The analysis also stated that Q2 of 2020 would be the first time sales on Square’s application would surpass that the mining rate.
Kevin Rooke, another cryptocurrency enthusiast, pointed out that Square’s latest performance meant that the company has witnessed 4 straight years of accelerating revenue growth for Square’s Bitcoin business. The information further revealed that Square’s crypto business is enjoying a massive 92 percent growth Year on Year. Rooke added,
“Worth noting that these are all retail customers too.
No single person made up more than 0.2% of Q1 2019 Bitcoin purchases.
Square limits all customers to $10k of Bitcoin per week.”
Jack Dorsey’s efforts seem to have paid off since the Q1 report also claimed that Q4 of 2018 saw $52.4 million streaming in with a profit of $490,000. The report added,
“We continued to drive strong revenue growth at scale. In the first quarter of 2019, total net revenue grew 43% year over year, and Adjusted Revenue grew 59% year over year. Excluding the acquisitions of Weebly and Zesty, which were completed in the second quarter of 2018, total net revenue and Adjusted Revenue grew 39% and 49% year over year, respectively. Cash App volume grew nearly 2.5x year over year, reflecting the growing network effects, reach, and engagement of this ecosystem.”
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