The financial and mobile payment company, Square, could rise more than $30 million dollars in annual sales. According to one Wall Street Firm, the company could accumulate 10 million Bitcoin buyers in two years.
Square Testing Bitcoin Strategies
As reported some days ago, Square is testing Bitcoin to see whether it has future in the industry or not. Square is focused in giving customers the possibility to choose between different assets and currencies.
“Given Square’s tendency to move judiciously into ne technologies, we expect it will do the same with bitcoin purchases. He upside could be significant if cryptocurrencies become more mainstream,” told Credit Suisse AG analyst Paul Condra in a note to clients.
Contra explained that the company could charge 1.5 percent fee per transaction. In addition to it, and according to him, the average customer may spend about $200 dollars a year with Bitcoin. Regarding the company’s performance, this year it has almost tripled its share price. It passed from $13 up to $49 dollars.
“While we are positive on Square’s strategy, to the extent it confers legitimacy on Bitcoin and prompts adoption by other providers (i.e., Pay Pal) the biggest beneficiary may be the crypto-asset industry,” said Condra.
When important companies like Square start to adopt Bitcoin, the currency gains legitimacy. As more investors and institutions start using this virtual currency, it appreciates and legitimises.
“If consumer demand increases for any new form of currency, we will consider support for those new payment methods as they become relevant to our customers over time,” told Amanda Christine Miller, a spokeswoman for San José, California-based Pay Pal Holdings INC., in a statement.
Bitcoin Growth and Support
The Chicago Mercantile Exchange (CME) has decided to add Bitcoin futures to its platform. Different Banks and hedge funds have decided to invest in Bitcoin and other cryptocurrencies. For example, Man Group Hedge Fund will start to operate with Bitcoin in the near future. Argentina’s biggest futures market ROFEX, has also taken the decision to implement cryptocurrency futures.
2017 was a great year for Bitcoin. Even after two hard forks and one cancelled fork, the currency showed an amazing resilience. Its price grew almost 1,000 percent and could cross 10,000 dollars before 2018.
Other cryptocurrencies like Ethereum, grew almost 5000 percent this year. Bitcoin has helped other cryptocurrencies to grow. Bitcoin being the best known cryptocurrency helped the market increase its value. Once investors started to investigate about cryptocurrencies, they discovered the wide variety of possibilities that it offers.
Image Courtesy of Pixabay
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