Binance, one of the leading crypto exchanges and among the most trusted ones transact more Bitcoin in a single day then Square does in one year Amid the plethora of crypto exchanges which depends upon inflated numbers acquired through wash trading, Binance and Square stand out as the most trusted source for investors to track the market.
Square’s number is trusted because of the SEC factor, which makes the exchange keep their sheet straight, while Binance over the years has created a sentiment of trust among its consumers.
Square in its Q4 letter to shareholders mentions that it moved around $50 million worth of bitcoin through its platform’s buy and sell feature. This brought the net profit for the firm at $166 million from Bitcoin trading in 2018. The numbers might seem quite low in comparison with the other exchanges, but Square only started Bitcoin services back in 2017, thus the current feat is no small achievement by any measures.
Binanace Moves More Bitcoin Daily Than Square Does in a Year
While Square app moved $50 million worth of Bitcoin in its final quarter of 2018, an analytic report published by Chain open research suggests that Binance’s trading volume from November 15th to December 15th accounted for $20 billion worth of Bitcoin.
As evident from the above figures, Binanace made so much money last year that its CEO Changpeng Zhao had to destroy $446 million worth of Binance coins in order to evenly compensate the shareholders of the firm.
Now that Binanace has added support for Credit card purchases, 2019 could make Binanace even more money then it did in 2018.
However, one should not compare the numbers of Binance and Square under the same parameter as both the firms cater to a different consumer base. While Binance is a pure exchange which allows for buying, selling, trading and holding of crypto assets, Square is just starting out as a payment portal, which allows for buying and selling of Bitcoin.
Binance has a plethora of crypto options customizable to everyone’s needs which is the main reason for such high transactions and trading volume, on the other hand, Square Cash App has only added the Bitcoin options as late as 2017.
Square Solely Focused on Bitcoin
Jack Dorsey, the Twitter CEO is a long time Bitcoin bull who not only believe in the technology but sees Bitcoin becoming the reserve currency of the internet. Jack does not see any competition between his cash app and Binance as they serve two different purposes. Jack says that his Cash App is aimed for the early majority which would help the consumers to use Bitcoin as their daily driver of finance.
Jack also said that his Cash App will be compatible with the lightning network which is being seen as the off-chain scalable solution for the Bitcoin network. Jack believes that Lightning network which reached a peak capacity of $2 million would allow for lower transaction fee which would play a major part in driving the Bitcoin contention as a daily driver.
Jack believes the only thing that is stopping the boom of Bitcoin as a daily payment method is the scalability issue, which would be resolved to a certain extent by the development of Lightning network and he is betting on it to be the biggest part of the Bitcoin boom in the coming decade.