Is Square's Love for Bitcoin Helping or Hurting?
Jack Dorsey loves bitcoin's potential as an online currency, and he's making it a big part of Square's (NYSE: SQ) future. But in the present, that means investors have to think of the e-commerce company as two different businesses. The first is the company's merchant services and personal payments business, which exhibits strong growth and great margins. The other is bitcoin, which has fast growth and razor-thin margins. Some may argue that bitcoin is a great retention tool for the Cash App. However, I think Square could be missing the payments forest for the bitcoin trees.
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Person-to-person electronic payments are expected to be a $2 trillion global industry by 2025. Square is already a player in that space -- but it's far from a leader.
Source Fool.com