Nearly Half of Square’s Cash App Revenue Came from Bitcoin in Q4 2019

Close to half of the revenue Square’s Cash App generated over the fourth quarter of last year came from bitcoin, according to a shareholder letter the firm released.

The company added the option to buy and sell bitcoin back in the summer of 2018, and since then the interest of its users in the flagship cryptocurrency has seemingly been growing, so much so that its Q4 2019 results show a total BTC revenue of $177.5 million, with profits of $3 million.

The Cash App generated non-bitcoin revenue of $183 million. Overall Square reported a year-end profit of $8 million, and $516 million in yearly revenue related to its bitcoin offering. Its CEO, Jack Dorsey, said a redesign of the Cash App allowed users to discover its other services.

The peer-to-peer transfers network continues to be our best acquisition channel… Those new to the app then go on to discover bitcoin.

Square’s Chief Finance Officer amrita Ahuja noted in the call that once a Cash user starts using its investing or bitcoin features, they tend to generate more revenue than regular users. Ahuja touted that the firm is able to acquire users and “keep them engaged and show them additional ways we can continue to add value.”

Square has notably been focusing more and more in the cryptocurrency space, and specifically on bitcoin. Late last year it funded a pseudonymous Bitcoin Lightning Network developer, ZmnSCPxj, so he could focus on the layer-two scaling solution.

Last month, it revealed it was building a Lightning Development Kit (LDK) that will make it easier for developers of wallets and other applications to integrate the layer-two scaling solution into their platforms.

Featured image via Pixabay.

'Big Spender' Bitcoin Wallet Exploit Is an 'Issue With BTC Itself', Says BCH Supporter

Michael LaVere
  • Crypto security firm ZenGo has identified a double-spend exploit dubbed "BigSpender" which affected popular bitcoin wallets.
  • Exploit allows an attacker to cancel a bitcoin transaction without the receiving user knowing. 

A crypto security firm has identified a double-spend exploit targeting popular bitcoin wallet providers. 

According to a report by ZenGo, the security firm has discovered a double and multiple spend wallet exploit for bitcoin dubbed “BigSpender.” The report claims the exploit allows an attacker to cancel a bitcoin transaction but still have it appear in a victim’s vulnerable wallet. 

The report reads, 

The core issue at the heart of the BigSpender vulnerability is that vulnerable wallets are not prepared for the option that a transaction might be canceled and implicitly assume it will get confirmed eventually.

As CryptoGlobe reported, ZenGo found that a user’s balance would be increased following an unconfirmed incoming transaction, without a subsequent decrease in the event the transaction being double-spent. The firm outlined how an attacker could use the exploit to cancel transactions of sent bitcoin while still receiving goods and services in return. 

The security firm tested nine popular cryptocurrency wallets and found BRD, Ledger Live and Edge to be vulnerable to the exploit. All three companies were notified by ZenGo of the threat and subsequently updated their products. However, the firm noted that “millions” of crypto users may have been exposed to the attack prior to the update. 

Bitcoin Cash supporter Hayden Otto told Cointelegraph the exploit is particularly concerning for bitcoin-accepting merchants. 

He said, 

The technique is facilitated by RBF (replace by fee), a so-called ‘feature’ added at the protocol level by the Bitcoin Core developers.The issue exists if you use BTC. Wallet software can only make some trade off, which results in a worse BTC user experience, in order to try to protect BTC users.

Otto claimed the exploit was derived from “an issue with BTC itself” and had little to do with wallet software. 

Featured Image Credit: Photo via Pixabay.com