Buying and selling Bitcoin just got a bit easier as the Square Cash app has fully embraced the cryptocurrency.
Cash Me Outside
After months of testing, users of the Square Cash app can now buy and sell Bitcoin.
Widely considered the gold-standard of cryptocurrencies, Bitcoin trading still faces barriers which prevent it from gaining widespread adoption. Square looks to help remedy that situation.
Originally a money-by-email service, Square’s Cash app is a popular way for individuals to send and receive money without paying traditional fees. It even has its own pre-paid Visa card and has proven itself positively disruptive to the traditional money-sending space.
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 a small step.
We also made this! https://t.co/z3u0liDNk4
— jack (@jack) January 31, 2018
However, the ease of access comes with limitations. App customers may only buy a maximum of $10,000 in Bitcoin per week, though they are able to sell as much as they like. Furthermore, users cannot send Bitcoin directly to other Cash app users—as is possible with most other Bitcoin apps and exchanges.
Also, users do not technically hold the Bitcoin they purchase through the app themselves, as Square plans to keep safe all bitcoins on behalf of its customers. This may benefit buyers new to the cryptocurrency market who are unfamiliar with long key combinations and private wallets but could turn off veteran buyers.
Additional fees will not be charged for Bitcoin transactions, and prices are set to mirror other major exchanges.
Power Play
Square’s new Bitcoin market comes in hot on the heels of another major announcement from rival stock trading app Robinhood.
Touting a commission-free trading model, Robinhood announced last week that it would be launching fee-free Bitcoin and Ethereum trading in five select states. The market is set to open sometime this month and has already found immense interest among eager cryptocurrency traders—with more than 1 million people waiting to register.
Likewise, Square’s announcement also generated positive interest in the company—raising the value of its shares by 4 percent, before closing at a 3 percent increase.
Credit Suisse analyst Paul Condra told CNBC:
We believe bitcoin and other crypto sales represent a potential mid/long term growth opportunity for Square and we are positive on the strategy. This strategy could also drive greater adoption of Square Cash and we note SQ is well positioned to potentially facilitate crypto-payment purchases at Square merchants at some point in the future.
Those looking to buy Bitcoin through the Cash app in the states of New York, Georgia, Wyoming, and Hawaii are out of luck, however, as purchases will be prohibited in these more stringent states.
[Disclaimer: the author of this article is a holder of Bitcoin (BTC)].
Do you plan on using the Cash app to buy and sell Bitcoin, or do you prefer other exchanges? When do you see Bitcoin becoming truly accessible to mainstream investors? Let us know in the comments below!
Images courtesy of AdobeStock and Robinhood.