Bitcoin's Huge Accounting Win

𝐋𝐞𝐚𝐫𝐧 𝐓𝐨 𝐁𝐮𝐲 𝐀𝐧𝐨𝐧𝐲𝐦𝐨𝐮𝐬 𝐁𝐢𝐭𝐜𝐨𝐢𝐧 𝐚𝐧𝐝 𝐂𝐨𝐢𝐧𝐉𝐨𝐢𝐧:
https://www.trader.university/courses/38824-the-ultimate-guide-to-bitcoin
Use the discount code YT99 to get the best price.

In this video, I discuss important FASB (Financial Accounting Standards Board) accounting changes that will have long-term positive effects on corporate Bitcoin adoption.

By Bitcoin being moved to fair value accounting on corporate balance sheets, companies will now be able to both write up and write down their Bitcoin holdings, with the result probably flowing to the income statement.

Under the previous Bitcoin accounting regime, companies could only write down their Bitcoin holdings and take impairment charges.

People always underestimate the long-term effects of accounting changes on asset prices. This is huge win for publicly traded companies that choose to hold Bitcoin on their balance sheets, like MicroStrategy.

This accounting change will encourage many more public companies to buy and hold Bitcoin on their balance sheets.

Fiat is a melting ice-cube. If you are a company holding large amounts of cash on your balance sheet, you are destroying shareholder value and should instead be moving a portion of that fiat into Bitcoin.

Not investment advice! Consult a financial advisor.

FASB Settles on Fair-Value Accounting for Measuring Crypto Assets:
https://www.wsj.com/articles/fasb-settles-on-fair-value-accounting-for-measuring-crypto-assets-11665614205

Seemingly scary impairment charge headlines:
https://www.coindesk.com/business/2022/02/01/microstrategy-takes-147m-impairment-charge-on-bitcoin-holdings-in-q4/
https://www.wsj.com/articles/tesla-records-170-million-impairment-charge-on-bitcoin-11658751201

Bitcoin corporate treasuries:
https://bitcointreasuries.net/

I am not being paid or otherwise compensated by any company or cryptocurrency project that I mention in my videos.

My opinion is not for sale. Please do not contact me with any affiliate or advertising deals.

#bitcoin
#financialaccounting
#FASB

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