Who is FAZBEE and how are the new GAAP Accounting standards so potentially bullish for Bitcoin? Monday Market Report | September 4th-10th, 2023
📢 Weekly TL;DR
Every Monday, we cover the latest developments and trends in the dynamic and ever-evolving world of cryptocurrency. From price movements, industry news and our favorite resources, we strive to provide our readers with a comprehensive overview of the crypto landscape.
Dear NDAXers—another week of incredible progress accompanied by... Well, rather lackluster price action.
- The History of Money to be taught in Salvadoran school curriculums,
- Vitalik’s new Privacy Pools workaround to Tornado Cash, and—
- North America’s largest regulatory body concerning generally accepted accounting practices will allow Bitcoin held on corporate balance sheets to mark the asset’s value to current market prices...
- A public curriculum that teaches children about currency debasement and the “dark side of FIAT”? Say less! Mi Primer Bitcoin—a non-for profit founded in El Salvador in 2021 (which translates to My First Bitcoin) has been teaching thousands of in person students about the evolution of money for years. First it was adults, then high-school students, and now, they're educating teachers on how to educate their students. It’s becoming part of El Salvador’s curriculum. The author of one of the world’s most note-worthy books about Bitcoin, a former university professor of Economics Saifedean Ammous (known simply as ‘Saif’ to initiates) has famously been consulting for President Bukele on Bitcoin policy for several months... Do you think financial literacy should be taught in Canadian schools as well? 👀 Decrypt
- This week, Ethereum cofounder Vitalik Buterin, along with four other authors, proposed a new way of enabling blockchain protocols—essentially smart contracts—to distinguish criminals from regular crypto users. Hot on the heels of 3 open-source coders being endicted a few weeks ago by the US DoJ on Money Laundering charges for their work bringing decentralized privacy tool Tornado Cash to the world—for which this week they pleaded not guilty—this feels especially timely. And strike while the iron was hot, this quatuor did, detailing a new technological feature called “privacy pools” in their technical whitepaper. In essence, they want to enable ‘unsuspicious’ privacy in crypto markets for a post-regulatory world. Considering a large percentage of Ethereum stakers have adopted US State sanctions against a number of Ethereum addresses, we can’t wait to see what comes of this. Unchained
- OK so Fazbee’s not a person... But accounting is dreadfully boring, so we lied. Sorry! Rather FASB is the Financial Accounting Standards Board which oversees accounting and financial reporting guidelines in the US, known of course as GAAP—or Generally Accepted Accounting Principles. But here’s the thing—these aren’t guidelines according to the SEC: they are rules, and no accounting firm will look at your publicly traded—or private, for that matter—books unless you are in compliance with said rules. The SEC goes further: if you do not comply, you are out of compliance. Well up until recently, because Bitcoin wasn’t generally recognized as the stalwart, decentralized and non-sovereign energy-based commodity that it is today, FASB’s GAAP considered it an Intangible Asset. Much to MicroStrategy's dismay (they hold something like 165,000 BTC on their—public: ticker MSTR—books) until they are sold, Intangible Assets can only be marked down, in value, and not up. So if you hold a ton of BTC on your balance sheet and as BTC is wont to do, its value plunges 70 percent, Fazbee says: “So sad, too bad, better luck next time”. That was... Until the FASB recently voted to change the GAAP rules to consider BTC eligible to be marked to market every quarter, like treasuries, stocks or commodities. Huzzah! For a deeper dive, visit @JamesLavish’s glorious thread on the topic on Twitter.
📰 Other Community News
In the cryptocurrency community, there's always something going on. Here are a few events and happenings that you might be interested in:
- Ethereum's Vitalik Buterin Argues for Blockchain 'Privacy Pools' to Weed Out Criminals Coindesk
- MakerDAO contributors propose up to $100M allocation for exploring tokenized T-Bills The Block
- Ripple acquires Fortress Trust in cash-and-equity deal Blockworks
- CFTC commissioner calls for crypto regulatory pilot program Cointelegraph
- ‘A Huge Deal’—Visa Reveals Crypto Payments Bombshell That Could Cause Bitcoin, Ethereum, Solana, Etc. Price Chaos Forbes
- FASB's Crypto Accounting Shakeup Could Lure More Corporate Investment, Michael Saylor and Others Argue Coindesk
- FASB Says Crypto Assets Should Be Marked at Current Values Coindesk
For more new stories, visit our LinkedIn
📈 Weekly Moves
Market Summary:
The global cryptocurrency market has reached a total market capitalization of CAD $1.42 trillion.
- Bitcoin continues to lead the market with a dominance of 48.6%, followed by Ethereum at 18.8%.
Performance:
Bitcoin is currently the top trading pair on NDAX, followed by Ethereum, XRP, Solana, Cardano & Stellar.
- Week over week, the value of Bitcoin (BTC) is down 2.70% and currently steady(ish) around $35.0 while Ethereum (ETH) is down 3.3%, now trading around $2,195.
As of 09/10/2023 11:30:00 PM EST, values in CAD.
Keep an eye on the market here 👉 Cryptocurrency Prices
📅 Upcoming Events
Mark your calendars!
- Sept 13 – August CPI Numbers
- Sept 22 – FOMC Interest Rate Decision
- Sept 29 – Chicago Mercantile Exchange (CME) Options Expiry
- Oct 3 – Valkyrie Bitcoin and Ether Strategy ETF Effective Date
- Oct 31 – Mt Gox claims payment date
- Fall 2023 - US Court of Appeals for the DC Circuit decision in Grayscale Case
📖 Educational Resources
For those of you looking to learn more about bitcoin and crypto markets this week:
- El Salvador's ambitious program aims to incorporate Bitcoin education in all schools across the country by 2024. – Bitcoin Magazine - EL SALVADOR LAUNCHES EDUCATION PROGRAM TO TEACH BITCOIN IN EVERY SCHOOL
- Lyn Alden is a macroeconomist and investment strategist. This interview is the second of three shows where we discuss Lyn’s amazing new book: Broken Money. In this show, we explore the concept of hard money, the ascendancy of paper money and the transition from gold-backed currency to fiat currency. We talk about the birth of banks, fractional reserve lending, central banks, the flaws of the Bretton Woods system, and the impact of the petrodollar. - What Bitcoin Did - The Emergence of Money with Lyn Alden (2/3)
- The board that oversees corporate accounting standards has voted unanimously to change the way corporates account for cryptoassets on their balance sheets, and some argue it eliminates a major barrier to enterprise adoption. – The Breakdown w/ NLW – How Big A Deal Are The Changes to Crypto Accounting Standards?
- Preston Pysh talks with Lyn Alden about her new book, Broken Money. In this second part of a two-episode series, Lyn talks about how money technology is converging into a commodity ledger that is like nothing the world has ever seen before. - Bitcoin Fundamentals w/ Preston Pysh - BTC146: BROKEN MONEY 2/2 W/ LYN ALDEN
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