01 Feb Square Cash App Offers Bitcoin Support. Company Shares Rise 3%
Square Cash App finally integrates bitcoin support. Following a trial period involving a handful of users, the payment company launched bitcoin integration yesterday and saw a rise in stocks as a result.
To accompany the launch, Square has also released a completely adorable Bitcoin tutorial in the style of a children’s book, titled ‘My First Bitcoin and the Legend of Satoshi Nakamoto‘. Through its colorful, pop-up artsy pages, the slideshow takes readers through the fundamental basics of Bitcoin and cryptocurrency in terms an (albeit financially-minded) five-year-old could understand.
Square CEO Jack Dorsey said in a tweet: “Instant buying (and selling, if you don’t want to hodl) of bitcoin is now available to most Cash App customers. We support Bitcoin because we see it as a long-term path towards greater financial access for all.”
This is very good news for the world’s biggest cryptocurrency, which was recently dropped by online payment processor Stripe amid growing troubles with its use. Although today’s news still leaves bitcoin (BTC) in the red on coinmarketcap’s charts, Square’s stocks have risen around 3% in response.
Square’s Cash app allows users to transfer funds on a person-to-person (P2P) or person-to-business basis, meaning you can pay a bill or send a friend $10. Today’s update will allow users to buy and deposit up to $10,000 USD worth of bitcoin per week, and with no additional purchase charge. In terms of pricing, Square will look across a range of exchanges to try and find an average. The only downside to all this is that technically, you don’t actually hold the bitcoin you use with Square; they do.
Where bitcoins are traditionally held in a digital wallet tied to a device such as a computer, phone or even a memory stick, the coins a user owns on Square Cash are tied to their Square account, meaning they are out of the user’s hands to an extent. Some Bitcoin enthusiasts may argue that this counters the total financial freedom that Bitcoin is meant to endow. This does also present some upsides, however, as it means users can lose a device or their password and still recover their coins.
In any case, crypto trading services are becoming increasingly popular as more begin to compete with Coinbase, the current standard. When trading service Robinhood announced it was to add zero-fee trading of Bitcoin and Ethereum (ETH), more than one million people signed up to the early-access waiting list. ‘Zero-fee’ is the buzzword here, as Coinbase typically charges 1.5 to 4 percent fees in the US. If Square can match this level of interest, it’s going to be a good year for the service, and possibly for cryptocurrency too. It certainly needs the rejuvenation.
Featured image: Bitcoin Exchange Guide