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Breaking the bitcoin stereotype

From risky headlines to real-world tools businesses can trust

Chapter 1 | Chapter 2 | Chapter 3 | Chapter 4 | Bitcoin as everyday money

Breaking the bitcoin stereotype

If you’ve ever thought of bitcoin as too risky or too complicated, you’re not alone. Many business owners share the same sentiment. The reality, though, is that most of the issues that once made headlines — like hacks, bankruptcies, or unclear tax rules — are being addressed in tangible ways.

Take security. A recent River Financial report found that over 1.3 million BTC were compromised through hacks and bankruptcies over the years, and another 1.6 million were lost through self-custody mistakes. But here’s the important part: only about 10% of those losses occurred after 2015. In other words, the environment has gotten much safer as best practices have evolved.

That same report shows that public companies holding bitcoin grew by 80% in 2024, and exchanges have stepped up with Proof of Reserves — a public audit that shows they actually have enough bitcoin to cover every customer deposit. It’s a transparency tool that helps build trust and ensures customer balances are backed by real assets.

Chapter 1 | Chapter 2 | Chapter 3 | Chapter 4 | Bitcoin as everyday money

Proof of Reserves adoption has increased

580%

since 2022, with more than half of exchange holdings now covered.

If you have sold Bitcoin on Cash App during the calendar year, Cash App will provide you with an IRS Form 1099-B form by February 15th of the following year of your Bitcoin sale. It is your responsibility to determine what taxes, if any, arise from your transactions involving bitcoin on Cash App.

Building a stronger ecosystem

Simplifying bitcoin sales and taxes isn’t the only way Square is helping. Miles Suter, Bitcoin Product Lead at Block, shared the key investments the company is making to strengthen the broader bitcoin ecosystem.

Chapter 1 | Chapter 2 | Chapter 3 | Chapter 4 | Bitcoin as everyday money

“We think of bitcoin's ascension in three phases. The first phase is making it accessible, which is what we’ve done with Cash App,” explains Suter.

Today, more than

24 million

customers have bought bitcoin on Cash App, a sign of how approachable bitcoin has already become.

“The second phase is making bitcoin more secure, and one of the initiatives we’ve developed in that regard is Bitkey. We believe bitcoin is more secure off exchanges and that's why we started Bitkey, the self-custody bitcoin wallet, so customers could have a safe way to reliably hold their own private keys.”

Bitkey gives people the option to store bitcoin securely without depending on exchanges, reducing risk while strengthening the broader ecosystem.

Chapter 1 | Chapter 2 | Chapter 3 | Chapter 4 | Bitcoin as everyday money

“The third is making bitcoin everyday money. And with this Square product, we’re introducing a holistic bitcoin for banking stack.”

Suter is referring to the Square solutions which bring everything together: Bitcoin Payments for accepting bitcoin at checkout, Bitcoin Conversions for automatically turning sales into bitcoin, and a built-in Bitcoin Wallet that allows Square businesses to hold, buy, sell, and withdraw bitcoin — all in one place.

So while the risks of the early years were real, the picture today looks very different. The systems are stronger, there’s more transparency, and mainstream businesses are beginning to embrace bitcoin as part of their long-term strategy. As adoption continues to grow, it could open new ways for businesses to save for the future, protect against inflation, and align with customer values.