Jack Dorsey is a pioneer in the tech space…

He cofounded Twitter in 2006, growing it from an obscure messaging app into one of the world’s largest social media platforms… with over 330 million monthly users (including President Trump).

He’s also the founder of Square, a financial services and mobile payments company based in San Francisco. Square allows individuals and merchants to accept offline debit and credit card payments on their smart devices.

Using a tiny square-shaped phone plug-in, Square all but eliminated the need for cash registers in small businesses. It was a complete game-changer.

Today, more than 64 million businesses around the world rely on Square’s cashless system.

Since it went public nearly five years ago, Square’s share price has rocketed from $12.85 to $153 – a 1,090% gain. That’s more than PayPal, Google, or Amazon over the same span.

But Square’s technology will be far more disruptive than just killing cash registers. In Dorsey’s own words, “Twitter is about moving words. Square is about moving money.”

That’s why Square was an early adopter of bitcoin.

In 2017, the company began offering bitcoin transactions on its popular Cash App. Its main goal is to make bitcoin the “native” currency of the internet.

And its latest earnings report shows signs that bitcoin’s adoption is increasing rapidly.

Today, I’ll tell you what those numbers mean… and the opportunity ahead.

Millennials Spearheading Adoption

Cash App is a popular payment platform offered by Square. And its biggest userbase consists of millennials.

According to Business Insider, Cash App has 30 million users. Nearly half of its users are people between ages 25 and 34.

Young people like Cash App because it enables them to easily send money to or receive it from their friends.

It makes it quick and simple to split a restaurant bill or an Uber ride. In June alone, Cash App saw 30 million transactions. That’s an increase of 50% from June 2019.

And leading that usage growth was bitcoin. According to its earnings report, Square’s revenue from bitcoin was up 600% from the year prior.

The chart below shows bitcoin’s explosion in popularity on Cash App:

chart

Millennials grew up on digital assets. They’re more comfortable using something like Cash App rather than a physical checkbook. So, bitcoin makes a lot of sense to them, and it’s natural for them to accept that it has value.

But adoption among millennials is just the start…

You see, only a fraction of the population uses cryptos today. Right now, 35–50 million people own crypto. That’s about 0.6% of the world’s population.

Today, only 9% of the U.S. population owns bitcoin. But about 30% of those who do own it are millennials.

Here is why that matters…

According to a report by Coldwell Banker Global Luxury, millennials are set to inherit as much as $68 trillion over the next decade.

It’s the largest transfer of wealth in history. In my opinion, a lot of that money is going to find its way into digital assets like bitcoin.

Think about this…

If just 10% of the $68 trillion they’re set to inherit goes into crypto (close to $7 trillion), the entire crypto market could go up 25x.

As more financial firms like Square make buying bitcoin easy, we’ll continue seeing widespread adoption of crypto assets. But it’s not just the new guys getting into crypto.

We’re about to see traditional banks come into crypto for the first time.

Banks Given the Green Light

Last month, the Office of the Comptroller of the Currency (OCC) gave the green light for banks to store and work with cryptocurrency.

I want you to think about the implications of that for a moment…

Back in 2016, some of my subscribers reported getting their bank accounts closed for buying crypto. In 2018, there wasn’t a bank in all of Puerto Rico that would let me open an account because I was writing about crypto.

Look how far we’ve come.

If you’re not familiar, the OCC is an independent branch in the Department of the Treasury. It regulates and supervises all the national banks. So a decision from the OCC impacts what hundreds of millions of people can do with their money.

This milestone paves the way for the entire crypto ecosystem to go mainstream. We’re already seeing mass adoption among young adults. But thanks to the OCC ruling, crypto is now primed to reach hundreds of millions more.

The U.S. banking system alone touches the lives of over 300 million Americans. And it holds north of $20 trillion in assets.

Right now, bitcoin’s market cap is just $200 billion. If bank customers allocate just 1% of their accounts to bitcoin… its market cap would double.

Nearly a dozen banks responded positively to the notice, including U.S. Bank and PNC Bank.

It’s time to read the writing on the wall. Crypto assets are here to stay. If you don’t have at least some exposure now, you will get left behind financially as these assets take off in price.

If you’ve been holding back on getting involved in crypto – or perhaps got scared out of it during the bear market – now is the time to get back in.

Since the OCC made its announcement, we’ve seen bitcoin increase 17%. And the entire crypto market is up 26%.

We’re already seeing millennials adopt bitcoin on platforms like Cash App. Soon, your local bank will be offering the ability to transact in crypto, too.

But you need to act today. Once crypto prices take off, there’s no bringing them back. The price you pay today could look very cheap three months from now.

Let the Game Come to You!

Teeka Tiwari
Editor, Palm Beach Daily