Mizuho Securities analyst Dan Dolev says payment giants Square and PayPal are poised to benefit from Bitcoin’s wild price movements even if the leading cryptocurrency falls off a cliff.
In a new CNBC interview, Dolev explains that Square’s revenues have traditionally gone up even when Bitcoin was in bearish territory.
“We did some work. We looked all the way back to 2017 and what we found out is that the revenue from Bitcoin for Square continues to go up even in periods where Bitcoin actually doesn’t go up. So right now we’ve had a rally, a massive rally, since December or even November. So that’s easy to think about Bitcoin going to a $100,000. But historically even in periods where it was going down, the gross profit from Bitcoin has been going up.”
And the reason for that is two-fold. One, there is more users actually using or trading Bitcoin on the Cash App. And two, the number