Bitcoin is often lauded as a revolutionary new technology that will change the financial world as we know it. And while that may very well be true, there’s no denying that the current system is far from perfect.
One of the biggest issues is the fact that it can be quite difficult to actually use Bitcoin to buy things. That’s where Square comes in.
Square is a popular mobile payments company that allows users to make and receive payments using their smartphones. And earlier this year, the company announced that it would start allowing its users to buy and sell Bitcoin.
This was a big deal because it meant that people would finally be able to use Bitcoin to buy things in the real world.
So how does Square make money from Bitcoin? Well, when you buy or sell Bitcoin using Square, the company charges a small fee. This fee is generally around 1% of the total transaction amount.
So if you bought $100 worth of Bitcoin, Square would charge you a $1 fee.
This might not sound like a lot, but it can add up quickly. For example, if 10 million people used Square to buy $100 worth of Bitcoin each, that would be $1 billion in transaction fees! And that’s just for one year.
Of course, Square doesn’t keep all of those transaction fees for itself. A large portion of those fees go to the miners who help power the Bitcoin network.
But even after paying the miners, Square is still likely making a hefty profit from all of those Bitcoin transactions.
So there you have it: that’s how Square makes money from Bitcoin. By allowing users to buy and sell Bitcoin using its popular mobile payments platform, Square is able to collect a small fee on each transaction. And as more and more people start using Bitcoin, those fees could add up to a lot of money for Square!.