Black coffee, scrambled eggs, #nostr. Good morning. 🤙

The current US accounting frameworks treat digital assets as long lived intangible assets (examples in that category would be patents, trade names, etc.). The accounting for those assets are such that once acquired, they cannot appreciate in value on the company’s balance sheet, instead they have to be evaluated only to determine if they’ve decreased in value (impairment). So there’s no NGU in accounting for bitcoin.

Compare that to the treatment of accounting for securities… if a company acquired shares in a public company (not a controlling stake, think <20% of the other company), the price of those securities is known and fluctuates on the open market. In each quarterly accounting period, the company that owns those shares can “mark to market” their investment and the value can go up or down based on the open market price.

Bitcoin has an open market price but could ONLY be marked down, which made zero sense. For a company like MicroStrategy that has purchased billions of dollars of bitcoin, their balance sheet does not reflect the current value of their bitcoin, because once the price goes down, the accounting treatment says their bitcoin has been “impaired”. When the price goes down, those companies have to report a loss in their income statement (even if they didn’t sell), so when it comes to their financial statements, MicroStrategy has taken major losses even though they’ve not realized any losses to this point.

The new guidance allows the accounting for bitcoin to be marked to market and allows companies to show the market value of their bitcoin on their balance sheet and represents a more pragmatic take on the real economics of owning bitcoin.

Yeah, pretty sure that Midas Mulligan’s place.

This pic just took me back to hiking through the petroglyphs national monument with the fam. 🤙🏻

Serious inquiries only.

There’s at least one…

Four day weeks are great until you have to jam 5-days’ work into the week.

We need a NIP to automatically respond to scammers as such.

GM. Had a great morning walk as the sun rose. 🤙

It finally happened. Braiins Pool.

I’m re-reading it now. Not my first run through it, maybe the third time re-reading… Each time the parallels become more and more clear.

“Until they become conscious they will never rebel, and until after they have rebelled they cannot become conscious.”

I’ve listened to the first to parts, and bought the book. I’m looking forward to listening to part 3 later today.

I’m saving the book for a trip I’m taking later this month.

Turtles live to around 80

Legends never die

The way those folks are treated, often by parents, could be making some of them think twice as to whether it’s worth it.

Positive vibes only on nostr.

Appreciate the real dialogue on this. 🤝

I’m definitely pro-economic incentives and POW. But I also know that not everyones’ incentives are aligned at all times. Plus, incentives and track records can certainly be at odds with each other (see: Lopp/Casa).

The piece you didn’t respond to is: Why now?

OK, I’ve read the tweet. Can we steelman the opposing arguments?

Why not build drivechains on Litecoin first? Why do we want to do drivechains now?

If you show up to change bitcoin as CEO of a company that stands to benefit, the default answer is (and should always remain): No, GFY.

Knowing not much about the subject myself, before I dive in, I have to understand the incentives.

As I understand it, Paul raised a round and is running a company that stands to benefit from this. He’s got employees and a burn rate to consider and THAT makes me very skeptical.

Now I see it. Thanks. 🤙