If you’re a business owner using Square and you’re curious about accepting bitcoin payments, you’re not alone. With Square announcing that 4 million merchants will soon be enabled to accept bitcoin by default, it’s natural to ask:

“Do I actually receive bitcoin when a customer pays me in bitcoin?”

The answer: It depends on your settings.

💸 Bitcoin by Default… But in Fiat?

By default, when Square rolls out bitcoin acceptance, customer payments in bitcoin will be auto-converted to fiat (USD in the US). That means you’ll receive dollars in your bank account, even if your customer pays with bitcoin.

For many merchants, this setup offers simplicity when getting started with bitcoin acceptance:

• No price volatility

• No tax or accounting curveballs

• No change to your existing workflows

But if you’re open to accepting a new form of money—one designed to store value over time—you’re not stuck with auto-conversion.

🪙 What Is Bitcoin, Really?

In short: Bitcoin is money. But it’s fundamentally different from the dollars you’re used to.

Let’s break it down:

Two Types of Money:

Fiat money—like U.S. dollars—loses purchasing power over time due to inflation (often 5–15% per year). Bitcoin, while volatile in the short term, has historically appreciated dramatically over four-year periods.

🛠️ You Can Choose to Hold Bitcoin

As I explained in a recent appearance on the CC Sales Pro Podcast, Square does give you a choice.

You can opt to keep the bitcoin your customers send, rather than convert it to dollars. You can either:

• Hold it in your Square account (custodial)

• Or send it to your own wallet for self-custody

Here’s a clip explaining exactly how that works:

💡 Why Some Merchants Choose to HODL

Even if only 1–3% of your revenue comes in via bitcoin, some merchants see it as a kind of savings account with upside. With bitcoin’s historical 50%+ compound annual growth rate (CAGR) over four-year windows, there’s reason to consider holding onto that slice of income.

Sure, bitcoin is volatile in the short term. But over the long term? Historically, it can't be beat.

🧭 So, What Should You Do?

If you’re using Square, ask yourself:

• Do you want simplicity and stability? → Stick with auto-convert to fiat.

• Are you curious about stacking a little bitcoin as a business treasury strategy? → Opt-in to receive and hold BTC.

At The Bitcoin Payments Advisor, we’re here to help merchants navigate these decisions—whether you’re just exploring or ready to fully embrace bitcoin payments.

Want to chat through your options? Reach out here.