One of the most interesting and advantageous design aspects that pseudonymous creator Satoshi Nakamoto built into Bitcoin, was the “halving” – a pre-programmed point in time in which miners receive a reduced block reward of BTC for confirming transactions on the network. Each halving event has been preceded by a major price surge in anticipation of the asset’s balance of supply and demand being thrown off. Some economists even believe that it’s the reason why Bitcoin is the fastest rising valued asset of all-time.
A new earnings report from payments processing app Square Cash, which rolled out Bitcoin buying to their uses at the end of 2017 and into the start of 2018, suggests that the company is now responsible for “absorbing” as much as 10% of the current BTC supply mined each day. Furthermore, the growth trajectory of the company’s Bitcoin sales could bring the app’s impact on the BTC supply to new heights, responsible for users buying double the daily supply mined of Bitcoin by the next halving, or 200%.
Square Cash Takes 10% of Mined BTC Supply, On Track for 200% By Next Halving
Jack Dorsey, founder of the social media platform Twitter and Square, Inc. – the payments processing company behind the cash app – is among Bitcoin’s biggest bulls. The entrepreneur believes that the first every cryptocurrency has a strong chance of becoming the world’s global currency for the internet, and is doing all he can to support the leading crypto by market cap on its journey toward realizing its full potential.
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The Bitcoin supporter launched sales of the digital asset to users of the Square Cash app at the close of 2017, and further rolled it out to more users at the start of 2018. Since then, the app has grown Bitcoin-related revenues month-over-month, and is now responsible for “absorbing” 10% of the daily BTC supply mined by miners across the globe.
It looks like @Square is now absorbing more than 10% of all BTC mining supply on a daily basis. That is damn impressive, and shows how much people #stackingsats can add up! https://t.co/yoy2GROJnN
— Ben Davenport (@bendavenport) May 1, 2019
Square Cash Impacting Supply: Is This Jack Dorsey’s Plan to Help Bitcoin Succeed?
With one single app offering Bitcoin as an afterthought having such an impact on the BTC supply, it highlights the scarcity of the digital asset and gives a glimpse into what the next halving could mean for that supply and its balance with demand. Each halving diminishes the BTC supply by 50%, which would automatically bring Square Cash’s impact on the BTC supply to 20% without any further growth.
If BTC sales on Square Cash maintain current growth rates, then by the next Bitcoin halving (May 2020), roughly 2 BTC will be purchased on Square Cash for every new BTC that is mined. pic.twitter.com/GPxXhaGK15
— Yassine Elmandjra (@yassineARK) May 1, 2019
But Square Cash shows no signs of slowing its growth, and Bitcoin awareness has only increased since the hype bubble in 2017 popped. If Square Cash maintains its current growth trajectory of Bitcoin sales, the app is set to syphon as much as 200% of the Bitcoin supply generated by miners each day by the next halving, which is currently scheduled for May 2020.
Related Reading | Jack Dorsey Wants to Help Get Bitcoin Adopted as a Global Means of Payment
With double the Bitcoin being sold to Square Cash app users alone than is unlocked by Bitcoin miners, the demand of Bitcoin will begin to greatly outweigh supply, and cause the value of the asset to set new all-time highs.