With its current buy rate, Square’s Cash App which used to be known as Square Cash, will double the percentage of new Bitcoin it’s currently buying, within six months. Currently, Cash App buys a considerable 8% of every quarter’s new Bitcoin supply.
In a tweet posted by a popular crypto commentator Rhythm (@Rhythmtrader), it has been suggested that if Bitcoin’s supply is maintained and Cash App continues buying at this same rate, the percentage of Bitcoin per quarter the app buys, will hit 16%.
“A single company only available in the US, Square’s Cash App, is buying up 8% of the new supply of Bitcoin every quarter. That same percentage will double to 16% in six months. The halvening is NOT priced in.”
Bitcoin’s next halving is expected to come by May and will see block rewards cut by 50% from the current 12.5 BTC per block, to 6.25 BTC per block. Rhythmtrader is however pointing out that the fact that the halving will definitely shorten Bitcoin supply, has not been taking into account, for the 16% prediction. There is also the very possible chance that the halving will shoot Bitcoin prices very high, possibly making it difficult for Cash App to keep on buying like it currently is.
Square has been doing quite well in the Bitcoin department and in its recently released letter to shareholders for the 3rd quarter of 2019, it recorded Bitcoin revenue to the tune of $148 million. Square started Bitcoin deposits back in June.
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