Why Square wins if crypto is the future

The bullish case for cryptocurrency is that it becomes a commonly held asset class. Whether people are using it as a store of value, transaction currency, or simply for trading, Square will be a winner. The company's current role as a Bitcoin exchange market and custodial wallet allows it to generate significant profit from the spread on transactions. In the first quarter alone, Bitcoin transactions accounted for $3.51 billion in Square's revenue and $75 million in gross profit.

If Bitcoin, or any other cryptocurrency, does end up being a digital currency used for real-life transactions, Square could be set up to be the transaction platform of choice. People could pay for goods with crypto from the Cash App, and customers using Square's selling platform could accept crypto, potentially with lower transaction costs than using credit cards today. And Square could have dozens of cryptocurrency options on its platform for buyers and sellers.