Square payments bet with Bitcoin deemed too dangerous

The Square payments company has actually taken a hit to its stock price on Monday after an expert criticised its venture into Bitcoin trading as too risky in a note to investors.Mark Palmer of BTIG stated:”Our company believe Square’s appraisal already shows emphatic and unobstructed development while cannot consider competitive, credit-related and macro dangers that did not disappear when some investors suddenly viewed its shares as a play on a trendy cryptocurrency. Our company believe Bitcoin might supply a limited contribution to Square’s revenues if the trial prospers, it becomes a permanent feature for all Square Cash users, and the business begins to charge a fee for trades. It is not optimal from a danger standpoint for Square to have its fortunes tied to those of a cryptocurrency that has frequently shown severe volatility.”He altered his score of Square to a Sell.The news comes on the back of a rise in the cryptocurrency Bitcoin in

the previous week, taking its appraisal to close to$ 10k per system. There is concern that it is too unpredictable and overpriced.There has been some speculation that PayPal would be making forays into Bitcoin as a payment method however it

appears possible that this modification might delay such moves.