Bitcoin Updates: Will Block Help Make Bitcoin a Daily Currency During Economic Challenges?

Block Inc. (NYSE: SQ), under the leadership of CEO Jack Dorsey, has enabled

(BTC) Lightning Network transactions for more than 4 million merchants in the U.S. through its Square service, representing a major step forward for the use of digital currency in daily business. First revealed in October and showcased at Compass Coffee in Washington D.C., this new capability lets sellers receive payments with immediate settlement and no fees until 2027, after which a modest 1% fee will apply . Additionally, merchants have the option to automatically convert up to half of their daily card revenue into Bitcoin using an integrated "Conversion" feature .

During Block's Q3 earnings discussion, Dorsey emphasized his enthusiasm for the launch, while also acknowledging the difficulties in making Bitcoin a standard payment method. "We're seeking every chance to inform both sellers and buyers about the advantages of using and accepting Bitcoin," he stated, adding that early users found the platform "very straightforward"

. This initiative fits into Block's larger plan to promote Bitcoin as a "daily currency," leveraging both its Cash App audience and Square's merchant base to increase practical use .

The rollout makes use of the Bitcoin Lightning Network, a second-layer solution designed for fast and low-cost transactions. Square now supports settlements between BTC and fiat in both directions, as well as fiat-to-fiat, and merchants can activate the feature through their Square Dashboard

. Transactions are final, removing the risk of chargebacks—a common issue for small businesses—while automatic conversion features help manage price swings .

Financially, Block's third-quarter report showed mixed outcomes. Square's total payment volume increased by 12% compared to the previous year, but the company did not meet profit and revenue forecasts, posting $0.54 per share on $6.11 billion in revenue, below the expected $0.67 per share and $6.31 billion . The earnings miss was linked to slimmer profit margins caused by updated processing contracts, which CFO Amrita Ahuja called a "2.6 percentage point drag" on Square's gross profit for the quarter . Nevertheless, Block's Bitcoin business brought in $1.97 billion in revenue for the quarter, despite a $59 million loss on its 8,780 BTC reserves .

The market responded with caution.

shares dropped 11.53% in pre-market trading after the earnings release, ending the day at $70.93—the lowest in nearly eight months . At the same time, Bitcoin's value rose by 1.68% to $105,174.93 in the 24 hours following the news, as institutional interest and regulatory changes improved market sentiment .

Opinions among experts and observers are mixed. Some see this launch as a major breakthrough for Bitcoin's mainstream use, while others are skeptical about the long-term viability of fee-free incentives and the potential for regulatory hurdles, especially in places like New York where licensing issues prevent participation

. Citigroup analyst Bryan Keane remarked that the margin pressure was "expected," but pointed to Block's long-term outlook and "rule of 40" approach as encouraging signs .

Block's expansion into Bitcoin infrastructure also includes products like the BitKey hardware wallet and a native BTC wallet for sellers, reflecting Dorsey's commitment to financial "freedom" through open networks. As Square now handles millions of Bitcoin transactions, the company's ability to turn merchant hesitation into widespread adoption will be crucial for both its financial prospects and Bitcoin's future as a global payment method.