November 16, 2017
By Joseph Young - November 16, 2017 (www.cryptocoinsnews.com)
The bitcoin price has surpassed $7,500 today, on November 16, achieving $7,558 at its peak, as the market continues to demonstrate optimism around the rapid rate of adoption by leading financial platforms.
Earlier this week, Square, the $15 billion payments app development firm operated by CEO Jack Dorsey, the founder and CEO at Twitter, surprised its users with the integration of a bitcoin brokerage feature on its mobile app used by more than 3 million active users.
The development team of Square followed up the integration of its first bitcoin pilot with the following statement:
“We’re always listening to our customers and we’ve found that they are interested in using the Cash App to buy Bitcoin. We’re exploring how Square can make this experience faster and easier, and have rolled out this feature to a small number of Cash App customers. We believe cryptocurrency can greatly impact the ability of individuals to participate in the global financial system and we’re excited to learn more here.”
Square’s integration of a bitcoin brokerage service will soon allow the app and the company to compete with existing service providers in the bitcoin market, most notably Coinbase. Over the past few years, bitcoin wallets, trading platforms, and brokerages have grown exponentially in value and user base. Hence, in the mid-term, major financial platforms such as Square will likely begin testing the bitcoin market, given the rapid increase in demand for bitcoin and the cryptocurrency market in general.
Almost immediately after CME Group’s confirmation in regards to its launch of a bitcoin futures exchange by the second week of December, $95 billion hedge fund Man Group revealed its plans to invest in bitcoin by the end of 2017. Man Group CEO Luke Ellis stated at the 2017 Reuters Summit that bitcoin will soon be added to Man Group’s “Investment Universe,” or a diversified portfolio of assets.
Managers and partners of large-scale hedge funds like Man Group are only permitted to issuing checks in the minimum value of around $300 million. Given such policy, in the mid-term, hedge funds and investment firms will invest at least billions of dollars in bitcoin, further increasing its liquidity and improving infrastructure surrounding the cryptocurrency.
Throughout this week, the market has remained highly enthusiastic and optimistic in regards to the short-term growth trend of bitcoin, considering that some of the world’s largest hedge funds will pour in billions of dollars in the market in the upcoming months.
George Kikvadze, the vice chairman at Bitfury, also stated that out of the 30 institutional investors he had met in the previous week, 12 are in the process of investing in bitcoin, 10 plan to invest in bitcoin in the short-term, and eight remain undecided.
While the bitcoin price has been relatively volatile over the past four days, by the end of this month, the $8,000 price target of highly regarded financial analyst Max Keiser seems realistic, given the adoption of bitcoin by major financial service providers and retail investors.
Featured image from Shutterstock.
November 15, 2017
By Lester Coleman - November 15, 2017 (www.cryptocoinsnews.com)
Square’s cash app, which is used for payment among friends, is testing the ability to buy and sell bitcoin, a benefit that could make bitcoin easy to trade for a huge swath of the population, particularly younger consumers.
Square’s cash app is one of the fastest and easiest ways to pay people, as the service is free and the transaction is completed almost immediate. Square Cash recently surpassed Venmo as the most frequently downloaded financial app on both Android and Apple phones, according to Apptopia, Forbes reported.
Squares Stock Responds
Square shares jumped more than 4 percent Wednesday as one Wall Street firm was quick to recommend the stock following this potential development, CNBC reported. Later in the day, it was trading at $40.49, up 1.9 percent.
Square enables sellers to accept card payments and also provides reporting and analytics, next-day settlement and chargeback protection. Square’s point-of-sale software and other services help sellers manage inventory.
Users with access to the bitcoin beta can swipe from the Square cash card page to buy or sell bitcoin, according to TechCrunch. The page shows a balance in both BTC and USD along with bitcoin’s performance over the last day, month or year.
Bitcoin For Mainstream Traders
The Square action signals bitcoin trading for mainstream traders. Square CEO Jack Dorsey has cited trading as a key motivator for people interested in profiting from bitcoin, which has been soaring in value.
Dorsey, in a recent interview with The Verge, recalled being asked by numerous people how to buy bitcoin. He said bitcoin could be especially popular with younger people who are using smartphones to make payments to friends.
Dorsey is considering making bitcoin another tool the company offers its merchant customers.
Square added the bitcoin option in response to customer interest, according to a company spokesperson, Forbes reported. The company believes bitcoin can improve participation in the global financial system.
The app does not yet allow users to make payments with bitcoin.
Mrinalini Bhutoria and Paul Condra, Credit Suisse analysts, noted that Square is well positioned to allow cryptocurrency transactions at the point of sale. Credit Suisse nonetheless held a neutral rating on the stock, pricing it at $31, or 22% below its Tuesday closing price.
Action Makes Analyst Bullish
Square users will be able to eventually use bitcoin to pay on Square terminals, Dan Dolev, a Nomura Instinet analyst, told CNBC. Dolev’s buy rating on Square has a target price of $45 because he sees the company disrupting the payments industry and expanding among retailers.
The Credit Suisse analysts said the largest risk to bitcoin is regulations. In addition, Square is exposed to counterparty risk and liquidity risk since it has to source bitcoin by using an exchange or pre-buying it. Nevertheless, the analysts see a lot of upside to bitcoin as cryptocurrencies become more mainstream. They said they see PayPal as being well positioned to provide these services.
Lester Coleman is a media relations consultant for the payments and automated retailing industries. He is available for writing and media relations assignments.