Recent news surrounding Bitcoin and related developments with Florin21 via the 21 Roundup.
FASB issues standard to improve accounting for Bitcoin as an asset
The Financial Accounting Standards Board (US) officially adopted ‘Fair Value Accounting’ for assets such as Bitcoin. The upgrade will come into effect after December 15 2024 which will facilitate the adoption of Bitcoin as a reserve asset for corporations worldwide.
David Marcus, Former President of PayPal & Co-founder and CEO of Lightspark, on FASB officially adopting Fair Value Accounting for bitcoin:
“You may think this is a small accounting change that doesn’t mean much. It’s actually a big deal. This removes a large obstacle standing in the way of corporations holding Bitcoin on their balance sheet. 2024 will be a landmark year for BTC.”
FASB Issues Standard to Improve the Accounting for and Disclosure of Certain Crypto Assets
Financial Times review their view on Bitcoin’s ESG credentials
In a welcomed move, the Financial Times has published their first pro-Bitcoin ESG article, which is a pivot from previous comments by the publication.
The article recognises the potential benefits of Bitcoin mining and its energy usage. Utilising excess energy generated via renewable methods which would also allow unprofitable grids linked to renewable energy to become profitable.
COP28: The struggle to say ‘fossil fuels’ out loud (ft.com)
Glassnode: Hold don’t sell
Glassnode research confirms holding as opposed to selling is the preferred strategy amongst investors with Bitcoin. They also suggest large sections of supply remain dormant in self custody which suggests long term strategies amongst investors.
El Salvador keeps winning
El Salvador became the first country to accept Bitcoin as legal tender in September 2021 as part of a long term, comprehensive strategy.
Millions of people downloaded the government’s new digital wallet app which gave away $30 (£22) in Bitcoin to every citizen. Businesses also began to accept Bitcoin as payment.
Since 2021, El Salvador’s president, Nayib Bukele has spent more than $120m (£95m) buying Bitcoin and has reiterated his desire to hold the asset as opposed to selling it. He posed a video to X, below which outlines their journey from 2021:
