After seeing crypto exchange after crypto exchange getting hacked... I wanted to write the following.
So here’s my top #3 reasons why Square’s Cash App is much, much more secure than any other exchange right now (at least centralized exchange):
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Reason #1: Square has a $30 billion market cap. Did you read this? 30 FREAKING BILLION
- Reason #2: Square is very well capitalized. Total assets: $2.3 billion. Of that $850 Million is cash. What about their equity? $800 million.
And you know why they are well capitalized? Because they aren’t a freaking bank like a Crypto exchange. They are a payment processing company. They are just doing BTC on the side.
I don’t know the balance sheet of coinbase or Bitfinex, but there is no way that you are going to see that kind of leverage. Expect more likely $1 of equity for every $10 of crypto. Square probably has more like $10 of equity for every $1 of crypto
- Reason #3: what do you think Square exposure to bitcoin is? First quarter last year: $30 million in BTC sales. It’s freaking negligible! They probably have maybe $100 or $200 million in total BTC exposure. That’s nothing for them.
And that’s my point with Square.... their Bitcoin is pocket change for them. They are like Coinbase with a proper insurance. They would probably lose more money in PR relation from having their BTC stolen than by the hack itself.
I doesn’t seem conceivable to me that bitcoin holders would not get their BTC back in the event of a hack.
That in my opinion is what makes Square by very far the more secure way to buy BTC (at least as a centralized exchange).. their BTC is pocket change to them!!!
I would highly recommend those who keep their BTC on exchanges to simply use them.
Not to mention: - NO SHITCOIN - just BTC! - Jack Dorsey is a Bitcoin maximalist
...disclaimer: Square’s Cash App is only available in the US I believe :(
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