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Here is the amount of revenue generated by Bitcoin Trading in the first quarter of 2018

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The digital payment company Square published its quarterly report on the results of the first quarter of this week. of its recently launched bitcoin trading platform.

The company first deployed bitcoin trading on a limited number of its Cash App users last year, and in January it unlocked the functionality for the rest of its base. users.

Square – which acts as an intermediary between its users and crypto-currency exchanges – does not charge commission, although it takes advantage of the gap between the purchase price and the sale.

The company reports that Bitcoin's total business turnover for the first quarter was $ 34 million, accounting for nearly 5% of the company's total $ 669 million in total net revenue . However, the report notes that this figure is calculated from the total amount of bitcoins sales to customers and does not take into account the costs incurred by the company when buying parts on behalf of their customers.

Once adjusted for these costs, Square reports that it earned only $ 200,000 of bitcoin during the quarter – less than 0.07% of adjusted revenues of $ 304 million. dollars of the company.

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These figures in themselves could justify Citron Research's recent claim that Square is overvalued because Wall Street is "drunk on nonsense." The company, which earns money by betting on overvalued stocks, has opened a short position on Square and has predicted that its share price could fall by 30%.

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However, the rollout occurred during a downturn in the cryptocurrency market, which saw the volume of transactions drop at all levels and many casual investors leave the ecosystem.

Once the price of bitcoin enters another bullish cycle, it is likely that early bitcoin investors will come back, and the Cash application – which already has a gigantic user base – will will probably reveal an attractive way for them to bitcoin.

In addition, many investors remain optimistic that Square could pay dividends in the longer term, especially if the company starts processing bitcoin payments via its eponymous digital payment platform or opens up a cryptocurrency brokerage platform.

Notably, Square CEO Jack Dorsey called Bitcoin "transformational technology" and also said he thought it would be the world's first currency in a decade

.

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Featured image of Shutterstock.

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