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$43 Million in Bitcoin Trades Help Square Beat Q3 Earnings Estimates


Square Cash app bitcoin

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Square, the merchant payment service provider which thrives on its mobile card readers and applications, has posted its third-quarter shareholder report, and it includes $43 million in bitcoin revenue.

Slim Margins on Bitcoin

Overall, they’ve made 51 percent more than they did last year up to this point, and revenue is 68 percent better than they did during the same quarter of last year. BTC sales are one of its smallest components, but they still represent a notable portion of total revenue — around 5 percent.

They mention that their adjusted revenue figures reflect a deduction of bitcoin transaction costs, noting that:

“We deduct bitcoin costs because we consider our role in the bitcoin transactions to be facilitating customer access to bitcoin. Since we only apply a small margin to the market cost of bitcoin when we sell bitcoin to customers, and we have no control over the cost of bitcoin in the market, which tends to be volatile, we believe deducting bitcoin costs is a better reflection of the economic benefits as well as the Company’s performance from the bitcoin transactions.”

Actual profits on the BTC revenues were therefore roughly $500,000, about 20 percent more than what they made in the previous quarter on the same product. Square has yet to add a variety of cryptos to its offerings, but when or if it decides to do so, we expect these revenues to increase as they can likely have higher margins on cryptos that are perceived as harder to acquire using traditional means.

Square on Pace to Become Leading Crypto Provider

Square’s Cash App allows people to digitally transact money much like PayPal, and also allows users to invest in the most prominent cryptocurrency. They secured a patent for their payments network earlier this year, potentially locking themselves in as the premier bridge between legacy payment rails and cryptocurrencies.

As CCN reported, Square brass have previously noted that cryptocurrency and BTC, in particular, is a “transformational” technology.

Given that Square is used for many purposes besides investing in or holding BTC, it’s likely to continue growing as a premier crypto provider and gives the added benefit of exposing its massive user base to cryptocurrencies.

The firm’s Cash App has more than 10 million installs on the Google Play store and provides a seamless crypto purchasing experience. In this respect, they are light years ahead of PayPal, who have yet to integrate cryptocurrency in any meaningful way, despite several notable rumors over the years. As of now, one can still not simply purchase crypto through his or her PayPal wallet, a feature that Square Cash now has.

Featured Image from Shutterstock

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Bitcoin Cash Price Gets Skewed due to Exchange Trickery

A lot of confusing action is taking place where the Bitcoin Cash price is concerned. Although its actual decline in value is quite obvious for everyone to see, the real price of BCH is not necessarily what people can see on Coinmarketcap. This is primarily because numerous exchanges treat BCHABC as Bitcoin Cash already despite nothing being decided in terms of which chain will be the longest. Bitcoin Cash Value Fluctuates Heavily Depending on where traders look at, the price of Bitcoin Cash will be either close to the $400 level or down to $250-ish. That is quite a large gap between prices, yet one that is also very easy to explain. Bitcoin Cash, as people knew it before the fork, no longer exists. Most professional exchanges have also retired this price ticker, for the time being. As the hash war rages on, there are still a lot of unknown factors waiting to be addressed. Despite this ongoing kerfuffle, there is a net 5.76% decrease in the Bitcoin Cash price, and a 5.4% decline over Bitcoin. More specifically, that is what CoinMarketCap reports at this time, although this is not necessarily the case whatsoever. In fact, some exchanges are clearly jumping the gun by labeling BCHABC as BCH and thus dragging the Bitcoin Cash price down a bit more. Exchanges currently engaging in this activity include Bittrex and Coinex, neither of which plays a big role of importance when it comes to trading. However, based on the current value of BCH on Bitfinex and Gate.io, it seems a similar incident is taking place. One also has to keep in mind Bitcoin Cash was getting battered ahead of the network split as well. Most exchanges have halted trading of BCH indefinitely, primarily because the currency no longer exists. It is evident either BCHABC or BCHSV will take over that name in the future, but nothing has been decided at this point. As such, any trading referring to just “Bitcoin Cash” or “BCH” should be avoided, as most users can never be sure which currency is effectively being traded under this name. All of this skews the picture pertaining to Bitcoin Cash altogether. Coinmarketcap reports there is still $392m in trading volume for BCH, even though that is virtually impossible right now. With so many exchanges freezing deposits and withdrawals, it is evident actual BCH trading is no longer possible whatsoever. Virtually all platforms have deposits of BCHSV and BCHABC frozen as well, which only makes this market trend more confusing. It is safe to say the entire network split has been a bit of a mess first and foremost. In the case of Bitcoin Cash itself, that name will – under the current circumstances- not be used across exchanges for much longer. Instead, the two separate camps need to be treated as such first and foremost. Until things settle down – with might not necessarily happen anytime soon – the Bitcoin Cash price itself is pretty much irrelevant for most traders and speculators. Disclaimer: This is not trading or investment advice. The above article is for entertainment and education purposes only. Please do your own research before purchasing or investing into any cryptocurrency. The post Bitcoin Cash Price Gets Skewed due to Exchange Trickery appeared first on NullTX.

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