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When the mobile payment company Square has begun allowing Bitcoin payments at the beginning of the year after several months of experimenting, its CEO Jack Dorsey explained that they implemented the cryptocurrency “because we see it as a long-term path towards greater financial access for all.” Well, it certainly looks like this move is starting to pay off.
The company reported (PDF) that during the second quarter of 2018 (Q2), the company earned a net profit of $420K from Bitcoin sales – $37M in total Bitcoin revenue minus $36.6M in costs. Even though it’s a relatively small rise from the $34M in total Bitcoin revenue compared to the previous quarter (+9%), Square did manage to double its net profit of Bitcoin, which had been about $220K in the first quarter.
Square allows Bitcoin sales through its Cash App. When a user orders a purchase of a certain amount of BTC, Squares earns a small margin of the sale that the company adds to the base BTC price – somewhere in the vicinity of 1%. Although Bitcoin is not really a cash cow for Square, it does appear that in Q2 Square succeeded much better in monetizing this crypto feature compared to Q2.
But Square’s stance regarding Bitcoin is definitely a long-term, as Dorsey had stated. In an interview with The Times of London back in March, Dorsey expressed his extraordinarily bullish vision of Bitcoin, which is unusually optimistic even in the crazy sphere of crypto:
The world ultimately will have a single currency, the internet will have a single currency. I personally believe that it will be bitcoin … [it will happen in] probably over ten years, but it could go faster.
Dorsey’s grand vision of Bitcoin, therefore, lays only a decade ahead; and the humble Bitcoin profits that Square currently makes are just the foundation upon which the company seems to plan building its crypto engine in the future. And indeed, Square Chief Financial Officer Sarah Friar affirmed that they are “not trying to push on the monetization of bitcoin today.”
While Dorsey’s prediction that Bitcoin will become a single currency does presently still sound fanciful, you wouldn’t have wanted to bet against him when he had founded Twitter twelve years ago, right?