It appears that Jack Dorsey is once again winning at his own game. Dorsey, who owns both Twitter and Square, has often had his companies compared to one another in terms of market value. Twitter was usually the one to lead, but the popular social media network has lost to the mobile and merchant payment app.
Square Cash App Grows Thanks to Bitcoin
The popularity of mobile payment apps has often been tied to the popularity of cryptocurrencies. After digital assets skyrocketed back in late 2017, people took notice. Soon enough, paid app downloads started growing as well, and Square was no exception. Even after Bitcoin and other digital currencies experienced a price drop in January 2018, mobile payment apps did not lose their popularity.
Throughout the year, Bitcoin continued to struggle, constantly losing its value until it dropped to its bottom at around $6,400. However, Square’s Cash App constantly accelerated. Experts tried to explain this by stating that there is more to Square than just being an app for Bitcoin. And, while its growth did start due to BTC, it managed to keep growing even without the crypto.
In June, Square received permission to allow New Yorkers to trade crypto on its Cash app. The company’s market cap grew even further after the approval, and it managed to surpass Twitter by quite a bit. Recent reports say that Square’s market cap has reached $30 billion, and is now closing in on $31B. Twitter, on the other hand, currently has a market cap of $25.8 billion.
To many investors, the rise of Square is proof of how much untapped potential cryptocurrency trading can bring to any business that decides to deal with them. Square’s Cash App has been growing rapidly ever since it was originally launched in 2015. However, the addition of cryptocurrencies is what fueled the app’s popularity and consistent growth.
The app allows users to manage funds, make orders, as well as make informed business decisions by using reporting and analytics. While many believe that Square’s Cash App might be the new PayPal, it still has a long way to go to become an app of that size. Even so, a lot of users believe that cryptocurrency can help the app reach this goal as well.
In the end, Square has had a lot of success with its business decisions, and it owes a large portion of it to Bitcoin. Cryptocurrencies have been a great new way to attract users and investors, and Square recognized this relatively early. While many have initially wondered whether Square stock is overheated, the fact that it continued to grow even after crypto lost value seems to have eliminated such doubts.