Bitcoin

Why Accountants Are Now Learning About Bitcoin

Published

8 months ago

3 June, 2024

SatoshiTimes Staff

Why Accountants Are Now Learning About Bitcoin

The Bitcoin logo is displayed on a smartphone. Photographic illustration by Omar Marques.

SOPA/LightRocket Images via Getty Images

Bitcoin is becoming an integral part of modern finance, and accounting bodies now see it as both an opportunity and a risk. Recognizing this change, AICPA and CIMA are beginning to take the lead in educating accountants about this new asset class. Last week, they organized the event “Blockchain, Bitcoin & Power BI in the Financial and Accounting Industry”. This marked an important step in the involvement of the AICPA and CIMA as thought leaders in the bitcoin economy.

James Dewar gave a lecture on the importance of including bitcoin in accounting education. Dewar, a CIMA qualified accountant with 20 years in financial services, also has a research master’s degree in finance and accounting, where his dissertation compared bitcoin to gold.

Bitcoin can be described as a network communication protocol, similar to TCP and IP, the protocols that underpin the Internet. Bitcoin’s design includes a difficulty adjustment algorithm, ensuring a stable issuance rate. This scarcity makes bitcoin unique, unlike fiat currencies whose supply can be increased by private banks, central banks and governments. Its open-source and decentralized nature further sets it apart, making it resilient to central control.

Bitcoin’s fixed supply and decentralization set it apart from traditional currencies and other cryptocurrencies. Different proof of bet systems, which mirror existing financial structures, bitcoin proof of work The system provides security and scarcity without any central controlling entity. Creating scarcity in an environment like the Internet, designed for infinite replication, is an important advance and is now being recognized by accounting bodies.

UNITED KINGDOM – AUGUST 22: A mechanical hand calculator made by the Bell Punch Company Limited, a… [+] later variant of the popular German lever-operated Brunsviga calculator. Key-operated adding and calculating machines were widely used in accounting and business until the late 1970s, when they were replaced by electronic calculators. Photo by SSPL/Getty Images

SSPL via Getty Images

Dewar emphasized the need for accountants to be well versed in bitcoin to identify strategic threats and opportunities posed by this technology. He said including bitcoin in accounting curricula and risk registers is crucial to future-proof financial literacy. Once this asset comes to the attention of finance and risk teams, ignoring it could be considered negligence.

The strategic use of Bitcoin in business

Microstrategyled by CEO Michael Saylor, adopted bitcoin as its main reserve asset. This shrewd move demonstrates how bitcoin can serve as a strategic tool for corporate growth. Other companies are following suit. For example, Metaplaneta Tokyo-based investment firm, recently followed Microstrategy’s example.

This decision was influenced by Japan’s high debt levels and the declining value of the yen. Metaplanet views bitcoin as a hedge against these economic challenges and a way to stabilize its financial outlook. Semler Scientific also announced plans to adopt bitcoin as a reserve asset, showing the growing trend of companies capitalizing on bitcoin for financial stability and growth.

Business in various sectors, including energy and waste management, leverage bitcoin to economic benefits. For example, companies now use excess methane to fuel bitcoin mining, turning a waste product into a revenue stream. Bitcoin mining is also helping to build renewable energy projects acting as a buyer of last resort for excess energy, which can stabilize the grid and make renewable infrastructure more viable.

Implications for finance

The integration of bitcoin into corporate finance is not limited to MicroStrategy. Pension funds like the Wisconsin Pension Fund are now allocating assets to bitcoin ETFs. This trend reflects a growing recognition of bitcoin’s value proposition and its positive impact on a portfolio’s Sharpe ratio. The BlackRock Bitcoin ETF has almost reached US$10 billion in assets in 49 days, further highlighting the demand for bitcoin investments.

POLAND – 03/21/2024: In this photo illustration, a Micro Strategy logo is displayed on a smartphone… [+] with Bitcoin logo in the background. (Photo illustration by Omar Marques/SOPA Images/LightRocket via Getty Images)

SOPA/LightRocket Images via Getty Images

The role of accountants

The initiative by the AICPA and CIMA to incorporate bitcoin education into their programs is timely. Forward-thinking organizations understand that knowledge of bitcoin is essential for accountants. Dewar’s presentation provided tangible reasons why bitcoin needs to be taught: both the potential and the pitfalls that organizations need to identify, explore or mitigate.

Bitcoin’s unique characteristics – decentralization, scarcity and security – make it an important asset for modern finance. Accountants must be equipped with the knowledge to navigate accordingly. Not including bitcoin in educational curricula could leave accountants unprepared for the future.

The AICPA and CIMA’s efforts to educate their members about bitcoin are the first of their kind in this sector. With leaders like James Dewar at the forefront, the accounting profession is well positioned to embrace this new asset class. Understanding bitcoin is no longer optional; is necessary for anyone involved in corporate finance and risk today.

Accountants should learn about bitcoin to provide additional value to their employees. This landmark event marks the beginning of a new chapter in accounting education, where digital assets like bitcoin take center stage.

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SatoshiTimes Staff

We are the editorial team of SatoshiTimes, where seriousness meets clarity in cryptocurrency analysis. With a robust team of finance and blockchain technology experts, we are dedicated to meticulously exploring complex crypto markets with detailed assessments and an unbiased approach. Our mission is to democratize access to knowledge of emerging financial technologies, ensuring they are understandable and accessible to all. In every article on SatoshiTimes, we strive to provide content that not only educates, but also empowers our readers, facilitating their integration into the financial digital age.

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Bitcoin

What to watch for in the markets

Published

6 months ago

21 July, 2024

SatoshiTimes Staff

Photo: Andrew Harnik (Getty Images)

After witnessing one of the largest global IT outages on record, affecting the travel, finance and healthcare sectors worldwideThis week is set to see more political drama, events, and earnings reports from tech giants.

Donald Trump’s ‘Lovefest’ Sets Jamie Dimon Up for Consideration for Treasury Secretary Job

Let’s take a look at what awaits us:

Major companies will release their earnings reports

Major tech companies and others will release their earnings reports this week, paving the way for what the second half of 2024 will look like.

Monday

Verizon will report earnings before the start of operations.

Tuesday

Coca-Cola, Comcast and UPS are all set to report earnings before the market opens.
Tesla will report earnings in the morning, while General Motors will report earnings in the evening.
Alphabet and Visa will report results after the market closes.

Wednesday

AT&T will release its report before the market opens.
Ford and Chipotle will report earnings after the market closes.

Thursday

Earnings reports from AstraZeneca, American Airlines and Southwest Airlines will be released before the market opens.

Trump to speak at Bitcoin conference

Presumptive Republican presidential nominee Donald Trump will speak at the next Bitcoin Conference in Nashville, Tennesseewhich is scheduled for July 25-27. While this is the first time a presidential candidate will attend the conference, it has sparked a debate over whether the crypto-friendly Trump will receive support from the crypto community in the upcoming election.

In addition to Trump, independent presidential candidate Robert F. Kennedy Jr. will also discuss crypto during the conference. Crypto advocates such as ARK Investment’s Cathie Wood, MicroStrategy’s Michael Saylor, and whistleblower Edward Snowden are among some prominent names who will be participating in the conference.

Ether ETFs are on the way

New Ether Spot ETFs are set to begin trading on Tuesday, July 23. Much like the spot Bitcoin ETFs, these ETFs will allow investors to buy the second most popular cryptocurrency like stocks. BlackRock, Ark Invest/21Shares, VanEck, Grayscale, Fidelity, Bitwise, Franklin Templeton, and Invesco/Galaxy Digital are all set to offer Ether ETFs. Crypto asset manager Bitwise predict that trading in the Ether ETF will drive the price of Ether higher, potentially surpassing $5,000.

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Bitcoin

Cryptocurrency’s Biggest Winners and Losers in a Second Trump Presidency

Published

6 months ago

21 July, 2024

SatoshiTimes Staff

Cryptocurrency’s Biggest Winners and Losers in a Second Trump Presidency

Bitcoin miners and cryptocurrency companies that have been blocked from going public in the U.S. could ultimately be the biggest winners in the digital asset world under a second Donald Trump presidency. Foreign companies at risk of losing market share could end up being the biggest losers.

That’s the view that’s taking hold among market participants and observers in the wake of the former president’s growing embrace of cryptocurrency as his chances of election grow. survey released Thursday by CBS News showed Trump with the majority — 52 percent — of likely voters in his likely November rematch with President Joe Biden.

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Bitcoin

Bitcoin, Ethereum, Solana and Cryptocurrency Markets Look Ready to ‘Send’ as Stars Align, According to Investor Chris Burniske

Published

6 months ago

21 July, 2024

SatoshiTimes Staff

Bitcoin, Ethereum, Solana and Cryptocurrency Markets Look Ready to ‘Send’ as Stars Align, According to Investor Chris Burniske

Cryptocurrency investor Chris Burniske says Bitcoin (BTC), Ethereum (ETH), Solana (SUN) and the cryptocurrency market in general seem poised for a run.

Former Head of Cryptocurrency at ARK Invest account his 292,200 followers on social media platform X that several catalysts are aligning, suggesting that digital asset markets are on the verge of a bull run.

According to Burniske, a partner at venture capital firm Placeholder, the highly anticipated launch of Ethereum-based exchange-traded funds (ETFs), Republican presidential candidate Donald Trump speaking at an upcoming Bitcoin event, and the current state of the BTC, ETH, and SOL charts all suggest significant optimism for the cryptocurrency markets.

“With ETH ETFs set to go live, Trump speaking at The Bitcoin Conference, and BTC, ETH, and SOL charts looking [they do] (while stocks are weak), it’s hard to imagine a world where we don’t ship next week.”

Reuters recently reported that preliminary approval for ETH ETFs has been granted as the Bitcoin Conference is scheduled to take place from July 25-27.

BTC, ETH, and SOL are trading at $67,333, $3,528, and $174 at the time of writing, respectively.

The venture capitalist too provides an update on his prediction that the total crypto market cap will eventually hit $10 trillion. According to his chart, the path to $10 trillion is currently “23%” complete, as it sits around $2.2 trillion.

Source: Chris BurniskeX

Earlier this month, Burniske he said in an interview with Real Vision CEO Raoul Paul that he has his eye on the Move ecosystem, which was originally built by social media giant Meta and then used to develop layer 1 blockchains Sui (IUE) and Apts (APT).

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Bitcoin

Here’s the next target for BTC before bulls can hold out for $70K

Published

6 months ago

21 July, 2024

SatoshiTimes Staff

Here’s the next target for BTC before bulls can hold out for $70K

Bitcoin’s recovery is going well, and the market is seemingly poised to create a new all-time high in the near term.

Technical analysis

Per NegotiationRage

The daily chart

As the daily chart shows, the price of Bitcoin has been rising since it broke above the 200-day moving average.

The market has also reclaimed the $60K and $65K levels and is moving towards the $68K resistance zone, which could be the last hurdle before creating a new all-time high. With the RSI also indicating that the price has clear bullish momentum, it could be just a matter of time.

Source: TradingView

The 4-hour chart

Looking at the 4-hour chart, it is evident that the price has been rising rapidly since breaking the downtrend line to the upside. The market also broke the $65K resistance level with momentum, turning it into a support.

While almost everything points to a new record high in the coming weeks, there is one worrying sign. The RSI is showing a clear bearish divergence between recent price highs, which could indicate a correction or even a reversal in the near term.

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