As I'm writing this, it's just been reported that Square (SQ) had just bought $50 million in Bitcoin. The exact amount is This is a big move on top of the previously mentioned Microstrategy investing upwards of $425 million into Bitcoin earlier this year.
Jack Dorsey has been an outspoken advocate of Bitcoin, proclaiming it will be the currency of the internet, and the world's universal currency back in 2018.
With the recent controversy surrounding crypto exchange Coinbase taking an apolitical stance in light of recent social tension in the US, Dorsey reminded the CEO of the industry he was flourishing in and how it was revolutionary within itself for him to build crypto exchange :
From this tweet, we see Jack Dorsey and Square are in full understanding of what Bitcoin is and why those who are in the community are so invested in it. The time to fight back against plutocratic and tyranny has come. Square Inc. is positioning itself as the leaders of this crypto revolution.
With this purchase of $50 million in BTC (1% of their total assets) , they've added more corporate fuel to the fire set by Microstrategy, showing that Bitcoin means business. Here's how they are doing it:
Right now, Cash App has 30 million active users, 7 million in which have a Cash App card. This will only increase. It was a major catalyst for Americans this year, as Cash App made it easier for people to receive their stimulus checks.
It was amongst the fastest methods in which US citizens were receiving their stimulus via direct deposit. Many of those who received their stimulus check early did so because they used Cash App.
Cash App is one of the few apps where US and UK citizens can purchase Bitcoin from the comfort of their own smartphones. In fact, Square reported 72% of their Cash App revenue, came from Bitcoin transactions.
Consumers can also use Cash App to buy and sell stocks for zero commissions, similar to Robinhood. One can actually buy Square's SQ stock on Cash App with ease and be apart of its massive growth. In March 20,2020 SQ was trading at around $38 a share, and as of writing it has skyrocketed to $184!
Cash App has shown steady, exponential growth for Square, climbing from $66 million in revenue and $27 million in profit in Q1 2018 to well over $1.2 billion in revenue and $281 million in profit in Q2 2020.
From a consumer perspective, Cash App is a great app to use, and they've many partnerships where you can get discounts from your favorite brands for example 20% off a Lyft ride. Their Twitter has exactly 1 million followers and it should be expected to increase with their brand awareness.
They've even sponsored NASCAR driver Bubba Wallace's stock car:
Since Square is originally a platform for businesses to create more seamless Point Of Sale experiences, it's only inevitable that they will release the ability for businesses on the platform to sell their products for Bitcoin, and hold Bitcoin on their own private addresses. They already help businesses with POS hardware and software, along with e-commerce solutions.
In terms of helping small businesses, Square is a giant. They do it all from creating portable POS devices customers can pay immediately, to giving restaurants the ability to manage incoming table orders, manage incoming deliveries, and host loyalty programs and gift cards. Square also makes it easy for businesses to handle payroll, so tips, schedules, and taxes can be handled with ease.
It's clear Square has created a state of the art, all in one merchant system. They're showing to be dedicated in making the already hectic lives of restaurateurs easier.I envision a day where people are paying for their food with their crypto whether on site, or at home waiting for a delivery.
Customers will order their favorite dishes, and restaurants will know the individual preferences of their entire consumer base. They can then give them the 10th order free, a free entree on his birthday, points on their loyalty program that he can use for free food, or all three!
Restaurants will provide such a unique experience and every customer will feel special knowing the restaurant is giving such an attention to detail and personalizing their experience
Square actually used to have a food delivery wing, Caviar, which they sold to DoorDash for $410 million in 2019. Caviar seemed to be more like a test run for Square, as they have most recently launched a service for restaurants and retail stores to use the platform for deliveries.
How it will work is Square charges a flat rate fee of $1.50 per order and the merchant will also pay a fee to the delivery service used at the time. This fee will be based mainly on the distance. Currently Square allied with Postmates, now owned by Uber, for the initial run of deliveries.
A key aspect of this will be the ability of merchants to be in possession of their customer data and maintain sales history. So restaurants will have even more insights into what customers like what items, what items are overall a boom or bust, and overall helping them create a better experience for their patrons.
One can even recruit new businesses onto the Square platform with their Affiliate program, which you can find here.
My only item of concern with Square is Jack Dorsey's CEO status at Twitter. Twitter has become a major hub for crypto investors to find news on their favorite projects and stay updated about Bitcoin. At the same time, Twitter has become a toxic wasteland, filled with ignorant people perpetuating ignorant rhetoric with many people being censored, losing dream jobs, and being ostracized for mere tweets.
This is potentially problematic as Jack Dorsey can simply block anyone he doesn't like or is politically influenced to be viewed as problematic on Twitter, and this could lead to that person being blocked from Square or Cash App. Also with so many echo chambers being formed on Twitter, enabling users to donate crypto to accounts they support or politicians is a recipe for scandal.
It is a potential conflict of interest for Jack Dorsey to remain CEO of Twitter, as it becomes more and more controversial. He cannot possibly advocate for the financial freedom associated with Bitcoin, while falling in line to liberal bullying and problematic agendas. Eventually Jack Dorsey will have to make a choice.
It's unlikely this would occur, but if I were to guess what would happen, it would be that Jack Dorsey removes himself as CEO of Twitter, which he's done before. Focusing solely on Square and its ability to create better businesses could pose a better long term gain for Dorsey.
Twitter connects the world, for better or worse, but chaperoning the entire planet's social commentary has to be painfully stressful. I think Jack Dorsey knows that. It's a way more stressful company to run, because it's babysitting the opinions of mostly uninformed people who feel so empowered in hiding behind a blank avatar, they feel they can bash, insult and sometimes even dox those who merely disagree with them, and their uneducated opinions.
When I look at how much Square is doing, how much it's growing, and how much more it has left to go; it's safe to say that it's the more interesting and profitable of the two.
While Square makes the world better, Twitter has been doing the opposite.
Alternatively this may provide a benefit, as Twitter can create its own native cryptocurrency with users being paid for likes and retweets, which they could then convert into Bitcoin or fiat. It was Twitter anyway that first launched the Bitcoin emoji.
For The World
Square last month launched the Cryptocurrency Open Patent Alliance. According to its website, this is a "nonprofit community of people and formed to encourage the adoption and advancement of cryptocurrency technologies and to remove patents as a barrier to growth and innovation."
Simply put, this is an alliance focused on keeping the cryptocurrency space free of the abuses related to patents created in the tech sector, while also creating an open source environment for the future generation of crypto innovators. You may know of how prevalent this is with the constant legal bickering between Apple and Samsung over design patents.
Members of the COPA pledge to never use their crypto-patents against anyone, except for defensive reasons; making their patents free for all to use. COPA members will also join forces by pooling their patents into a joint library, that every member can use with the peace of mind of knowing they won't be sued for it.
This is amazingly revolutionary as it will protect future members from litigious bad actors, and provide them a space where they can build their projects with ease and community assistance.
Square will foot the bill for onboarding and establishing the community for the first year. There will be nine board-members governing the alliance, with three being members of the open source and crypto community, focused on creating a better ecosystem and six from member companies.
After the initial year, members of the COPA will pay membership fees based on their revenue, with members whose revenue is below $10 million able to join for free.
I believe Jack Dorsey and Square Inc. will pioneer the Bitcoin revolution as they've just gotten started. Cash App is only available right now in the US and UK, but I believe they will definitely be expanding for full global adoption.
They also have the potential to create a feature where users can send and receive multiple currencies on their cards, similar to Transferwise. With Transferwise being valued at $5 billion and Square being valued at over $40 billion, there could be a potential acquisition to make global Cash App use a reality.
One region I believe would benefit greatly from having Cash App is Africa, specifically Nigeria. In this article I mentioned how Nigeria has become a lowkey hotspot of crypto adoption, and with an already low amount of trust in national currencies, Cash App could potentially keep the Naira going, while making it easier for Nigerians to send each other Naira and Bitcoin, seamlessly converting their money accordingly and sending it to their relatives in the US and UK.
Overall, it's clear Square is championing a world where people can use crypto in their everyday lives with complete ease. Cash App has only been available for 7 years, so imagine how popular it will when it reaches 15 years. By then, I predict it will continue growing as a global fintech giant.
The Bitcoin Kit will teach you how to buy Bitcoin with Cash App in a few minutes. You'll also learn how you can even earn Bitcoin for everyday tasks, other ways to buy Bitcoin and the best influencers to follow to learn more about this groundbreaking technology.
Join the revolution here!
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