Acceptance of cryptocurrencies is enough to make something rise in value evidently. That is the story as told by the rapid rise in valuation for Square following news that it is testing out acceptance of Bitcoin over its payment platform.
CNBC.com reports that Square raised by three percent on the news that it is testing the acceptance of Bitcoin over its payment platform. Some believe that this puts Square in a position to be a potential play on the value of Bitcoin for those who do not want to invest directly in Bitcoin.
There are other companies which may also find that they are in a position to make profits off of Bitcoin as well. The obvious candidate for that is Paypal. Paypal remains a wildly popular payment processor. If they decide to allow transactions of Bitcoin to pass through their system, the cryptocurrencies will have really arrived at that point.
The leading platform in the United States for Bitcoin transaction is known as Coinbase. They have a reported 12.5 million users, and the amount of transactions that go through this platform hit new records all the time. In fact, some of those records were set just recently with a wild weekend of Bitcoin trading.
In this one year alone, the value of Bitcoin has increased sevenfold. The ride to get to that point has not been without bumps. Bitcoin can lose a quarter of its value in just a couple of days worth of trading. At the same time, the overall value has had a strong upward trend in general.
When cryptocurrencies first made their appearance on the scene, they were laughed off by a lot of Wall Street types. They saw them as nothing more than a passing fad. In the long run through, it turns out that even the Wall Street types have not been able to continue to ignore this currency. It is starting to trade in volumes that rival the entire stock market. At the same time, it is posting returns that are far higher than what the markets are provided to people. As such, even some of the oldest and most prestigious Wall Street firms are now taking a second look at these currencies for their investment potential.
The trading volume on these types of things just continue to attest to their overall value to the people who use them. If that continues, then it is likely that even more Wall Street firms will latch on to this movement
Dil Bole Oberoi
