The Square platform has seen an increase in buyers Bitcoin For the first time last month, Chief Financial Officer (Amrita Ahuja) said. Amrita Ahuja.
We had 3 million people using Bitcoin through the Cash App in 2020, with 1 million people new to Bitcoin in January 2021, Ahuja said.
Ahuja’s comments came just days after Square announced it was buying more of the world’s largest cryptocurrency in cash via the financial company’s balance sheet funds.
The Cash App service is Square’s peer-to-peer payment platform that also allows users to buy and sell assets such as Bitcoin and stocks.
The surge in interest in Bitcoin in January among Cash App users coincided with the continued upward trend in the digital currency last month.
Bitcoin was traded on the first of January at less than 30 thousand dollars per unit, and the price reached 40 thousand dollars for the first time after about a week, despite the decline in its value during the second half of January.
Bitcoin crossed the $ 50,000 mark earlier this month, but the big selloff pushed the price down below $ 50,000.
However, Bitcoin is still up by over 70 percent so far and over 400 percent in the last 12 months.
And Square began allowing nearly all of its users to buy and sell Bitcoins through the Cash App in January 2018.
Its initial entry into the cryptocurrency market came just as Bitcoin was in the middle of a big rally in 2017, hitting a record high of nearly $ 20,000 in December.
Then there was a major downturn during 2018 in what became known as the cryptocurrency winter, when Bitcoin lost 80 percent of its value.
In 2020 Bitcoin started a massive rally as a number of prominent investors described it as a strong hedge against inflation.
Square itself bought $ 50 million Bitcoin in October using the cash on its balance sheet.
The company led by Jack Dorsey announced earlier this month that it had bought an additional $ 170 million Bitcoin.
All Bitcoin purchases are worth about 5 percent of the company’s cash holdings, and Square now owns 8,027 bitcoins in total, worth about $ 360 million.
Dorsey, one of Bitcoin’s most famous supporters, once predicted that it would eventually become the Internet’s single currency.
Ahuja said: Bitcoin aligns with our goal, which is economic empowerment, which means providing access to financial instruments on a larger scale, including for people who have not previously owned them, and we believe Bitcoin is a way to do that in the future.
Fluctuating trading has been a hallmark of Bitcoin, and some cryptocurrency skeptics cite these large fluctuations as a cause for concern when the company invests some of its balance sheet money in digital assets.
When asked about volatility, Ahuja said: The investment we have made so far represents 5 percent of our money, and the businesses that we have linked to Bitcoin through the Cash App account for about 5 percent of our total profits.
She added: We are thinking in the long term, and we are constantly evaluating this investment, we will be dynamic, and respond to the market environment, but in the end this long-term vision is what we are investing in.