Bitcoin got a huge leg up on Wednesday as Square Cash, a mobile money-transfer service, said it will allow some users to buy bitcoin directly from its mobile app.
The price of bitcoin soared to new record highs on the news as well as Square as its shares hit a 52-week high on the news.Square’s Chairman and CEO Jack Dorsey, who also runs Twitter, said last week, “I want to make sure as a company, and this is not just Square but also Twitter, that we’re looking at technologies like the blockchain, like cryptocurrency, and learning from it.”
Square now gives bitcoin a dose of financial acceptance that may lead to other payment services like Paypal to begin to allow people to trade in the cryptocurrency.
Although I am not fully aware of the mechanism Square will use to allow users to buy bitcoin, however, it could take much of the mystic away and allow more crypto buyers into the market who were leery of just how to jump into bitcoin.
The Square deal — right now — does not allow users to pay for items with bitcoin, but that could change down the road.
On Thursday morning bitcoin was trading just off its high of $7,500.