Things are getting more interesting in bticoin and crypto world as time goes by. There have been a couple of positive news for bitcoin in just a couple of weeks. There was a brief market movement that turned out to be nothing. However, in a long run all of the changes we are seeing will accumulate and continue making the fundamentals of bitcoin even stronger. At this point any positive news and wins for bitcoin leading up to the next halving event will make next bull run even stronger, I think. What was revealed in the news today is equally as important as any wins in bitcoins history, and will play a significant role in its growth and success. Financial Accounting Standards Board will be introducing new fair value accounting rules for bitcoin and other cryptocurrencies. Michael Saylor has spoken about the importance of fair value accounting for bitcoin and how it would attract more companies to add bitcoin to their balance sheets.
Everybody knows Michael Saylor is beyond obsessed with bitcoin, and is heavily invested in the asset and technology with his company funds and personal investment. Since Saylor's bitcoin journey began, he has become one of the important personalities in business who is able to convey the value proposition of bitcoin for various audiences. He can describe the benefits in simplest terms, but also explain the corporate or macro-economic benefits of bitcoin strategy. Bitcoin is for everybody. In many bitcoiners' minds there is no doubt that bitcoin will replace gold as store of value and its market cap will surpass the one of gold's. Saylor goes beyond gold's market cap valuation for bitcoin. He believes bitcoin will continue appreciating in value as it attracts more interest from companies and countries.
Three events Saylor mentions will take bitcoin beyond million dollars per coin are: approval of spot ETFs in the US, bank offering bitcoin custody wallets and loans against bitcoin held, and fair value accounting rules for bitcoin. While SEC has been stubborn regarding bitcoin ETF interests, and not so friendly towards crypto lately, big money players like Blackrock entering the field and showing interest in spot ETFs may have changed odds of stop ETFs becoming reality in near future in favor of bitcoin. Moreover, SEC vs Grayscale lawsuit hasn't been going well for SEC either. I tend to agree with the overall market sentiment that bitcoin spot ETF will be happening soon.
Banks have been struggling. It has become evident with banks failing and showing weaknesses earlier this year. Bitcoin doesn't directly compete with banks and its goal is not getting rid of banks. It is simply an alternative for those who are interested to participate in a better money network. Interestingly, bitcoin is also an option for banks to participate in. Perhaps banks would be in better position than any people or entities to take full advantage of the benefits bitcoin offers. One example the SWIFT system. Banks can get an upgrade in a day or less for a better technology if they chose too. However, there are political influences and financial interests that have been preventing banks to become participants in bitcoin network. I think eventually the ones who figure it out early enough, may find that might is way for banks to survive, and maybe even strive. Saylor is making an interesting prediction that banks will be offering custodial services. As bitcoin continues to be recognized by more and more organizations, countries, and governments, that is a possibility.
If bitcoin is replacing gold, and banks traditionally offered services to keep gold safe, they may just choose to do the same with bitcoin. They already have the customers and networks. Creating such services wouldn't be difficult for them. However, why would anybody trust banks with their bitcoins? After all bitcoin offers self-custody of property and ability for anybody to become their own bank. There is no need for people to deposit their bitcoin in banks for safekeeping. Banks can lose the bitcoins and crypto just like anybody else could. While better option to protect property is self-custody and not trusting banks or exchanges, and while this solutions is the best for many, some others may find benefits in letting banks temporarily hold the assets. There may be use cases for individuals and companies to utilize such services. Especially, if banks would offer additional services like loans against digital property.
Saylor's third prediction, fair value accounting for bitcoin is perhaps the most important one. Because MicroStrategy holds hundreds of thousands of bitcoins in their balance sheet, this must be the one that Saylor cares most about. But also Saylor and MSTR didn't really worry about much either, otherwise why would they have accumulated so many bitcoins. They care because this opens up opportunities for other companies to get involved in bitcoin. FABS will be preparing these new rules this year and have them ready by the end of the year. While the new rules are expected to go into effect in 2025, companies will be able to adopt this accounting starting next year. So what does this mean?
It means now the standard for accounting and reporting digital assets like bitcoin or other coins is more fair. Companies will regularly update their balance sheet and can update the valuation of their holding based on market prices. They will be reporting the new numbers quarterly, regardless the prices went up or down. This adds more transparency into company books, and investors can see the real picture. Companies also benefit from this because new rules will represent the true overall health of the company. By the old rules, assets like bitcoin would be considered intangible assets and companies were required to report the losses when prices went down after they have purchased the asset even they haven't sold them yet. However, if prices went up they would be able to do the same thing. They would have to sell the assets to show the real value of their balance sheet. Fair value accounting rules will allow companies to utilize measurements that capture the most up-to-date value of an asset, including rebounds in value after price dips.
Once again, Saylor shows how knowledgable he is regarding corporate finance and demonstrate the ability to see the future of the bitcoin. I am not sure wether Saylor's all predictions will come true, or will come true in near future, but at least getting one or two is not bad. This is especially great to see as we are approaching the bitcoin halving event. Another win for bitcoin, another win for decentralization.
Bitcoin is getting more recognized and everyone understands that it's not going anywhere anytime soon. Mass adoption is on the horizon to a certain extent. The fact that legislation is working on incorporating BTC and not ignoring shows there is a future for crypto.
Step by step legalisation, there is no way back for BTC and other valuable cryptos from now on.
Clarity supports asset value. That is a good news.
Saylor is very optimistic but I am wondering when an ETF will really pass. I don't have any hopes for it so long as the Biden administration is in charge. I hope the rules and regulations about crypto becomes clearer because I hope it will reduce the vagueness there.
Well, you can't beat em join em
Bitcoin is indeed for everybody, since everybody can benefit from a better financial system. I think more banks will eventually join in. Good news that more structure is being built for bitcoin.
I'll be honest I didn't read through all of it..
One thing I have noticed in the Forex markets is that before a major jumps or spike occurs the markets tend to push downwards for quite some time before it rallies again..
Let's just hope the same happens with crypto😅
Hive should start riding the wave of incoming bull run. I think our current position in the market could be improved. And has every potential to make it to the mainstream. Once bitcoin surge starts I know Hive and Hbd will pump up.
I believe as time goes onz BTC will establish its ground soon
interesting times ahead for bitcoin and the entire crypto market Michael Saylor have literally been paving adoption for crypto investment for years hope more institutions see the need to embrace this technology it gets even more interesting
Regulations will benefit the market and enable corporations, to really invest in crypto currencies. Very true despite the stagnant moves we are seeing in the market. The systems being put in place will drive the market to another all time crazy.
Bitcoin is just the greatness. Its a good idea to dca regular, $25 weekly !
It's interesting to know that Bitcoin has value prediction that could equate gold in the future.
I'm not a crypto writer, but I always look up to see what you have to say per time because your post usually beam up in our minds over the future of cryptocurrency and the reliability of Hive.
With all the deductions from Michael Saylor's speech, there is obviously hope. Crypto world will soon get out of the woods.
Bitcoin is very powerful and that is why I feel it will be very hard for any other coin not to follow the trend of Bitcoin
How will they even achieve it?
no one hypes it up like saylor lol
The news has been good for the past few months but its price is not going up yet, we will have to watch it like this for some more time then we will see as soon as the 24th third month comes, then we will see its price. The price will appear to go up and then it won't come down. We can say that it is going back to its all-time brother. Buy again from.
Another win for alt coins like HIVE and I'm waiting to see hive reaching moon fast.
It's nice to know these updated good news that I didn't notice from anywhere else. @tipu curate 10
Upvoted 👌 (Mana: 0/75) Liquid rewards.
Honestly I don't think bitcoin can compete with anything out there, no matter how low or how high its value is.
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until when do you think the bear market will last? what is your view in 2024?
Bitcoin is appreciating day by day, as time goes on we will see more from BTC
Very interesting post and very informational, thanks for sharing!
You've provided a comprehensive analysis of the current state of the cryptocurrency market, focusing on Bitcoin and its potential for future growth and adoption. Michael Saylor's insights and predictions certainly carry weight given his deep involvement and advocacy for Bitcoin.
The points you've highlighted regarding the importance of fair value accounting rules for cryptocurrencies are significant. It's true that traditional accounting methods often fail to accurately represent the value of assets like Bitcoin, leading to discrepancies in financial reporting. The adoption of fair value accounting can offer greater transparency and reflect the true value of these assets on a company's balance sheet.
Your discussion of the potential role of banks in offering custodial services for Bitcoin is also intriguing. While Bitcoin's ethos is rooted in self-custody, there may be scenarios where individuals and companies see the benefits of utilizing bank services, particularly if these services come with additional financial offerings like loans against digital assets.
The ongoing discussions about Bitcoin ETFs and the potential involvement of big players like Blackrock are indeed noteworthy, and it will be interesting to see how regulatory bodies like the SEC evolve their stance on this matter.
Overall, your analysis underscores the evolving nature of the cryptocurrency market and its integration into traditional finance and accounting practices. As we approach Bitcoin's halving event, the landscape continues to evolve, and it will be fascinating to observe how these developments shape the future of the crypto space.