New Bitcoin Play Hitting Wall Street. With the recent explosion of cryptocurrencies, there has been a lot of chatter on Wall Street about how to make money in the industry. There are so many different coins out on the market today, with more being released on a weekly basis, that they need to cut through a lot of the smoke in order to identify the best opportunities for investment.
It was recently revealed that Square, a company founded by the Twitter CEO Jack Dorsey has been testing their support mechanisms for the use of bitcoin. Square is a cash payments app that allows customers to securely transfer money mobile to mobile if necessary.
While there has been no official announcement by Square on this matter, Wall Street is abound with talk of this recent development.
It was today that this news was circulating and it played a part in Square having its share price rise by 3%$, with a well-known Wall Street firm recommending the stock to their clients as one to watch for future developments.
Their analysis of Square was based on their belief that they could be a quick mover as they become the first mainstream fintech business that will be able to provide cryptocurrency services.
The analysts at Credit Suisse also pointed out that Square is ideally positioned to be able to start at the physical point of sale for crypto transactions.
This comes as the buying and selling of bitcoin has become massive business in recent times and is now receiving mainstream attention across the globe.
The current leader in the United States for the purchase and selling of bitcoin is Coinbase and they currently have over 12.5 million users according to the metrics provided on their website and to date it has been involved with the exchange of over $40 billion in digital currency.
It was only back in January that these user numbers were down at around 5.5 million, so you can clearly see how the user base has more than doubled in less than a year. This is testament to the surge in popularity for bitcoin and other cryptocurrencies and it doesn’t look set on stopping anytime soon, as more and more people on a daily basis are looking to get involved.
The price of bitcoin this year has increased by more than seven times, which showcases the high level of demand that exists for it. It is now at levels over $7,200 having recovered from a downward dip over the previous weekend.
This is not the first time that a company has seen a bump in its share price after news about them working on bitcoin-related projects was leaked. A prime example of this was the 187% rise during the year of Overstock.com’s share price as they have been spending a lot of time and focus on further development of businesses utilising blockchain technology.
Square are currently trending towards a 198% increase for this year, but they have to date done little amounts of testing when it comes to their app and buying and selling bitcoin.
Oh yeah, from 5.5 million it has doubled in less than a year shows that it will never stop .
12.5 million users is really unbelievable.
Thanks for sharing, worth reading it.
Nice post