Square Cash appears to have what it takes to become a serious competitor to Coinbase, with Bitcoin buying and selling service now available across the entire United States for the first time.
Red, white, and bitcoin. Now you can use Cash App to buy bitcoin in all 50 states. pic.twitter.com/D4fhVRz7WL
— Cash App (@CashApp) August 13, 2018
Coinbase is the biggest cryptocurrency exchange headquartered in the United States, with 20 million users and USD 150 billion of transactions since launching in 2012, which has generated USD 1 billion of profits.
On the Square Cash alternative, users can easily buy and sell Bitcoin instantly with their debit card, in the same way they can use their debit card to send cash transactions instantly, which was the company’s original purpose. Square Cash’s Bitcoin buying and selling limits are higher than Coinbase, with an easier and more streamlined process than Coinbase. For users with bank accounts, Square Cash is a way to avoid Bitcoin ATM fees and still receive their money the same day, compared to Coinbase which can take days to process even small Bitcoin sells.
At first, Square Cash rolled out to a limited number of states starting in late 2017 but now it has acquired the New York BitLicense and will have no legal problems to offer Bitcoin exchanging in every state. Square Cash has kept fees low to increase adoption of its Bitcoin services; these are currently lower than Coinbase fees. These will likely remain minimal for the foreseeable future to enhance the growth of Square Cash’s Bitcoin user base.
So far Square Cash has only generated USD 70 million of Bitcoin transactions but now that it has officially launched across the entire United States, this number could grow drastically in coming months. Square Cash has 7 million users, most of which signed up to send cash transactions but now all of these users can easily send Bitcoin if they choose. More users will likely be signing up just for the Bitcoin service.
It appears Square Cash has the infrastructure to really compete with Coinbase, which is good news for United States consumers since it gives them a good option besides Coinbase to buy and sell Bitcoin, and it will cause Coinbase to improve their features to compete with Square Cash. Likewise, Huobi has entered the United States via HBUS, and OKCoin via OKCoin USA. These are among the biggest cryptocurrency exchanges in the world and could be major competitors for Coinbase, which creates a favorable environment for consumers.
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