• Thu. Jun 8th, 2023

Latest Bitcoin & Cryptocurrency News



There'S a massive new update to the Bitcoin market and I think you should pay attention the financial accounting standard sport, the organization that oversees publicly traded companies they previously had companies treating Bitcoin and other cryptocurrencies as an indefinite lived intangible asset. What the hell does that mean means that if you held this asset on your balance sheet, you had to Simply Mark the lowest price it touched in any given quarter if you bought Bitcoin at fifty thousand dollars and it dropped to 25, even if it came back, You still had to report that the Bitcoin was only worth twenty five thousand dollars. That makes no sense, and so now the Financial Accounting Standards Board has upgraded the rules. They received a ton of pressure from people like Michael Saylor, and companies like tax bit. The Financial Accounting Standards Board has upgraded those rules to allow people to use fair market value.

That means, if you hold 10 Bitcoin on your balance sheet and the price today is fifty thousand dollars. You simply can report that you have five hundred thousand dollars of Bitcoin on your balance sheet. This Common Sense, accounting rule will allow for more publicly traded companies to buy Bitcoin and hold it on the their balance sheet. It allows for companies to Simply treat Bitcoin like what it is: a highly liquid, publicly traded asset that simply has a market value that moves 24 7 365 days a year. These small nuanced, seemingly weird Accounting Standards, have a massive impact on the way public companies think about what assets they hold on their balance sheet, and it has prevented many many companies and billions of dollars from coming into the Bitcoin Market.

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It won't happen overnight, but now that the Financial Accounting Standards Board has upgraded these rules, I expect more public companies to put Bitcoin on their balance sheet, especially in an environment where we are experiencing 8.2 percent inflation in the United States, and it doesn't seem like there's Any relief to the devaluation of dollars on the horizon,

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