Micheal Salyor decalogue for a 10x Bitcoin Appreciation

[yhiaali3]

The man is in an unenviable position. Microstrategic losses are about a billion dollars as a result of the decline in the price of Bitcoin. What can a man say in a situation like this???!! Michael Saylor bet on the future of bitcoin and crypto assets and bought about 129,000 bitcoins at an average price of 30k and now the bitcoin price is around 20k. This is a very difficult situation for the company.
Saylor said in a previous tweet:
 

"When the company adopted the Bitcoin strategy, it anticipated volatility and structured its balance sheet so that it can continue to #HODL through adversity."

He also said:
 

"MicroStrategy has a $205M term loan and needs to maintain $410M as collateral. $MSTR has 115,109 BTC that it can pledge.
 If the price of #BTC falls below $3,562 the company could post some other collateral.
 See slides 11 -12 in Q1 2022 presentation. #HODL"

https://twitter.com/saylor/status/1536695409648836609



This means that Microstrategy has prepared itself well to face the huge fluctuations in the market, so perhaps the "Ten Commandments" that Saylor mentioned, in addition to HODL, are part of the company's strategy to face the fluctuations in the market.

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[hugeblack]

A person who invested all that money cannot come to people and simply tell them that Bitcoin is not good, they will only benefit from it if they want to buy more, which is unlikely at the moment.

Institutional investors were the reason for the continuous rise in the price of Bitcoin, but with the monetary tightening, the money allocated to invest has decreased a lot, so if they do not sell (Dimond hands) we are on the right point for a rise in the near term.

Frankly, what frightens me now is the repeated failure of stablecoin and decentralized projects.

Let's not forget, in the first and the last they are investors and will sell, now or sooner.

[fillippone]

This means that Microstrategy has prepared itself well to face the huge fluctuations in the market, so perhaps the "Ten Commandments" that Saylor mentioned, in addition to HODL, are part of the company's strategy to face the fluctuations in the market.

I guess the Decalogue is meant to reassure the volatility is a price to be paid for a greater future reward.
Lowering time preference, and sensibility to current price fluctuations declaring the final objective (10X) and the path needed to achieve this.

[Hydrogen]

so there's no wash trading rule. So people can sell their Bitcoin and buy it back and harvest tax gain and that's not the same with Apple.So that gets fixed by the house ways and means committee that's a big plus for the asset

This dates back to korean crypto exchanges in 2017.

They had no commission on trades.

Which many criticized claiming it was possible to make multiple accounts on exchanges and buy/sell to alternate accounts to influence prices without suffering significant losses in the process.

Many stock brokers adopted this trend around 2019 with commision free trades. But it was actually crypto exchanges who were the 1st to implement the practice of commission free trading in 2017.

[JayJuanGee]

so there's no wash trading rule. So people can sell their Bitcoin and buy it back and harvest tax gain and that's not the same with Apple.So that gets fixed by the house ways and means committee that's a big plus for the asset

This dates back to korean crypto exchanges in 2017.

They had no commission on trades.

Which many criticized claiming it was possible to make multiple accounts on exchanges and buy/sell to alternate accounts to influence prices without suffering significant losses in the process.

Many stock brokers adopted this trend around 2019 with commision free trades. But it was actually crypto exchanges who were the 1st to implement the practice of commission free trading in 2017.

You must be new here (hahhahaha that's meant to be a joke)

I am pretty sure that as far back ass early 2014 (and perhaps even earlier) there was wide-spread accusations that various Chinese exchanges were faking trade volume which also had other ramifications about manipulating BTC price, too, and there were various iterations pf the China bans bitcoin story - but the late 2016 China bans bitcoin really seemed to have had put a damper on the somewhat normal Chinese citizen participation in bitcoin, and a lot of the funds that had been stuck on Chinese exchanges ended up getting locked through most if not all of the 2017 bull run.. so those guys really got fucked, and sure maybe the Koreans took over in 2017 - because I do remember some of that high Volume matters going over to Korea in 2017 - but the Korean exchanges were quite a bit less influential than the Chinese exchanges had been between 2014 and 2016, so the gap in prices was much greater between Korean and western exchanges in 2017 as compared to what the price gap that had usually been between Chinese exchanges and western ones in 2014 to 2016 (IE. Chinese had a tighter gap .. but a gap still existed).

[fillippone]

Caitlin Long explain why regulation isn’t against Bitcoin Idea:



She resonate Micheal Saylor’s idea of (lack of) regulation acting as a drag on bitcoin appreciation.

[JayJuanGee]

I did not want to make two posts in a row, so I waited for a post in this thread.. including that I had tried to get fillippones attention in the WO thread, but he might not have seen my post.  Here it is for reference (at the bottom of the post). 

Fillippone was having too much funzies and on vacation. .I must tattle.


Ok. back to topic: 

I had heard a good run down and criticism of Saylor's 10 points on Pomp's podcast - interviewing Max Keiser.  It is a pretty good discussion, and Keiser went over all 10 of them one by one with Pomp.

The Pomp Podcast: #1017 Max Keiser On Helping A Nation Build On The Bitcoin Standard

[fillippone]

Thanks for the heads up. I totally missed the reference in the WO post.
I will certainly add this podcast in the things I have to do today.
The kind of things one does on an holiday: update the spreadsheets, stamp a few seeds on washers, fight in toxic maximalism feud on Twitter).
I like Pompliano, but I am not the exact fan of Max Keiser.

I will be back!

[fillippone]

Something new on this front:

Let’s just take the 10 sources of my pain:

• The FAS accounting is detrimental for the lack of FDIC guidance makes it difficult, if not impossible for banks, to hold the stuff, we're waiting for clear SEC-CFTC guidance.

Micheal Saylor just tweeted this:



This is the relevant part:

There are currently no specific accounting or disclosure rules for cryptocurrency assets, so businesses classify them as indefinite-lived intangible assets similar to intellectual property such as trademarks. Companies must review the value of such assets at least once a year and write it down if it drops below the purchase price. If the value rises, companies can only record a gain when they sell the asset, not if they continue holding it.

Companies and accountants want the FASB to adopt fair-value accounting instead, which would allow them to recognize losses and gains immediately and treat digital assets as financial assets.

The FASB on Wednesday said fair-value accounting best captures the economics of crypto assets and determined the method would be a requirement rather than an option for companies. “We’ve heard from investors that they want transparency through disclosure, and the only way to get to that is fair value,” board member Gary Buesser said.

This kind of valuation is more keen to the mark-to-market criteria, which is important for a reliable representation in the balance sheet, in the best interest of the stakeholders.

Just a little trick if you bump into the paywall: https://12ft.io/

[fillippone]

More on the same.
Apparently the mark-to-market approach is getting more and more probable for bitcoin holdings:

Crypto Accounting Plan Would Have Net Income Reflect Value Swings

Companies and accountants have complained for years about the lack of official accounting rules, but FASB rejected three official requests, initially arguing that not enough companies used crypto in any material way to justify the time and resources needed for making new rules. The board changed its tune in 2021, when it received hundreds of requests to take action.

“Whether you think it’s the future of finance or whether you think it’s a speculative bubble in the process of popping, I think moving to fair value really does allow investors more useful information. That’s critical,” FASB member Frederick Cannon said.

At least here we have a regulator who's taking action to regulate, instead of whining about the lack in regulations.

[Smartprofit]

In my opinion, the value of Bitcoin lies in the fact that it is an alternative to the modern financial system. 

Does Bitcoin need regulation? 

Yes, - if it will contribute to its survival and development. 

No, - if we consider the situation from the point of view of an attempt to introduce the first cryptocurrency into the traditional financial system. 

Bitcoin is the antagonist of the modern financial system.  For Bitcoin, the best thing is to stay in the "grey" zone. 

If there are no other alternatives, then you can pretend to be a traditional financial instrument.  But that's just pretend...

[franky1]

my pains

regulations:
regulators protect business, police customers
regulators dont police businesses, protect customers

they cant evolve/have a hybrid regulator that understand the differences between mainnet PoW assets vs speculated PoS/pegged tokens.

they refuse to recognise crypto business/ico models, so decline licences. but then whinge that a business/ico is not licenced

leverage risk:
allowing loan sharking (20x leveraging)
allowing customer to have 2000% risk without credit checks or max %risk

excessive corporation valuations:
exchanges that do $1.1b for 2year cashflow valuation.
(normal 2x of cashflow is fair value)
yet markets rating them at $8billion (16x of cashflow)
yet these exchanges do not have their own corporate assets of 16x cashflow
coinbase: $750m volume
=$1.5m fee(cashflow/income) /day (0.2% fee)
=$547m/year
=$1.1b 2 year

[fillippone]

they refuse to recognise crypto business/ico models, so decline licences. but then whinge that a business/ico is not licenced

Regulators are actually damaging agents in this space. I think bad regulation is actually worse than no regulation. Or do you believe the bad regulation allowing GBTC instead of a spot ETF is better than no regulation?

[franky1]

they refuse to recognise crypto business/ico models, so decline licences. but then whinge that a business/ico is not licenced

Regulators are actually damaging agents in this space. I think bad regulation is actually worse than no regulation. Or do you believe the bad regulation allowing GBTC instead of a spot ETF is better than no regulation?

for me the only regulation i want to see is regulation that supports consumer protection.

using the current rules and remit of SEC/CFTC and FATF just do not work in crypto.(bad regs)

in short KYB(B for business) is needed more than KYC

a new regulator is needed(crypto trained and crypto understanding). and its remit should be consumer protection. categorising what a business does, how a business treats its custodianised coins to then categorise whether SEC or CFTC need to get involved should the business play dirty

by then being regulated, the new hybrid regulator can help the native banking industry to offer insurance products to further protect consumers of a business

all done without the crappy "KYC everything" model of native regulators, that dont care about insurances to protect customers or auditing a business every quarter/monthly

i do find it funny how every citizen has to be audited for tax.
citizens banks give them a monthly statement
but am exchange business does not need to report on its corporate accounts as much as citizens do..
when it comes to custodianising customers funds exchanges can jsut refuse to show accounts. like coinbase refuses to show "legal entities" public addresses of coins it has in custody

[harapan]

Funny and shocking how Micheal Saylor nine years ago was a big Bitcoin critic. Sayings that Bitcoin will crash just as most gamblers do

So much Financial Awareness and Education he must have achieved putting so much latter on in the whole Bitcoin stuff.
Now he stands as a big influencer of Bitcoin fighting for daily freedom

[franky1]

Funny and shocking how Micheal Saylor nine years ago was a big Bitcoin critic. Sayings that Bitcoin will crash just as most gamblers do

ATH are not sustainable price zones that are suppose to sustain

the ATH of 2013, 9 years ago.. was infact suppose to "crash"
although the better wording is correct back down away from its premium and come back down to value

shouting
"bitcoins days are numbered, It seems like just a matter of time before it suffers the same fate as online gambling." is not the best way to say that the bitcoin price is definitely goring to correct back down


everyone knows the sea level is rising, slowly. but that does not mean when you see a tsunami to think the peak of a tsunami wave is suppose to be the new sea level.

so warning that the tsunami will crash and the waves will return back to a more valued sea level thats slightly higher than the sea level before the tsunami. is actually accurate advice

its just how you word it that matters

[fillippone]

Very important development according to Bloomberg.

Long-Awaited Bitcoin Accounting Rules to Capture Rises, Dips (2)

MSTR: MicroStrategy, crypto holders can shift to fair value accounting, Bloomberg says


The Financial Accounting Standards Board voted unanimously Wednesday in favor of new rules that are expected to be published by year end that will allow cryptocurrency companies and other businesses with significant crypto holdings to measure the value of their Bitcoin and other holdings at fair value, according to Bloomberg. MicroStrategy (MSTR), a significant holder of Bitcoin, has previously voiced support for fair value accounting for certain crypto assets including Bitcoin.

Bloomberg's Nicola White, who wrote in the past about this subject,  comments:

MicroStrategy, Crypto Holders to Shift to Fair Value Accounting

By Nicola M. White
Crypto companies and other businesses with significant crypto holdings will get long-awaited accounting rules to measure the value of the Bitcoin, Ethereum, and other crypto in company coffers, US accounting standard-setters unanimously voted Wednesday.
Under new rules expected to be published by year end, companies that hold or invest in cryptocurrency will be required to report their holdings at fair value, a measurement that aims to capture the most up-to-date value of an asset—including rebounds in value after price dips. While the new standard will inject volatility into the earnings of companies heavily invested in crypto, the ability to record recoveries will be an improvement over current practice, companies and accountants have told the Financial Accounting Standards Board for months.
The rules will go into effect as soon as 2025, but companies will have the option to apply them early, FASB agreed.
No part of the rulebook for US accounting specifically addresses how companies like enterprise software maker MicroStrategy Inc., automaker Tesla Inc., or crypto exchange Coinbase Global Inc. need to recognize and measure the digital currencies they own.
Companies currently default to an American Institute of CPAs practice guide that treats most cryptocurrency as intangible assets, a category that includes things like trademarks, copyrights, and brands—all items that, unlike crypto, are rarely traded. This means companies record their crypto at the historical price they paid and assess their holdings every quarter for impairments, or value declines. If the price of Bitcoin drops even briefly during the period, it’s considered impaired. Companies cannot revise values upward if the market recovers.

Bullish Microstrategy, more Bullish Bitcoin.



EDIT: Added link to the news, so that JJG is happy with that.

[JayJuanGee]

Very important development according to Bloomberg.

MSTR: MicroStrategy, crypto holders can shift to fair value accounting, Bloomberg says

The Financial Accounting Standards Board voted unanimously Wednesday in favor of new rules that are expected to be published by year end that will allow cryptocurrency companies and other businesses with significant crypto holdings to measure the value of their Bitcoin and other holdings at fair value, according to Bloomberg. MicroStrategy (MSTR), a significant holder of Bitcoin, has previously voiced support for fair value accounting for certain crypto assets including Bitcoin.

Bloomberg's Nicola White, who wrote in the past about this subject,  comments:

MicroStrategy, Crypto Holders to Shift to Fair Value Accounting

By Nicola M. White
Crypto companies and other businesses with significant crypto holdings will get long-awaited accounting rules to measure the value of the Bitcoin, Ethereum, and other crypto in company coffers, US accounting standard-setters unanimously voted Wednesday.
Under new rules expected to be published by year end, companies that hold or invest in cryptocurrency will be required to report their holdings at fair value, a measurement that aims to capture the most up-to-date value of an asset—including rebounds in value after price dips. While the new standard will inject volatility into the earnings of companies heavily invested in crypto, the ability to record recoveries will be an improvement over current practice, companies and accountants have told the Financial Accounting Standards Board for months.
The rules will go into effect as soon as 2025, but companies will have the option to apply them early, FASB agreed.
No part of the rulebook for US accounting specifically addresses how companies like enterprise software maker MicroStrategy Inc., automaker Tesla Inc., or crypto exchange Coinbase Global Inc. need to recognize and measure the digital currencies they own.
Companies currently default to an American Institute of CPAs practice guide that treats most cryptocurrency as intangible assets, a category that includes things like trademarks, copyrights, and brands—all items that, unlike crypto, are rarely traded. This means companies record their crypto at the historical price they paid and assess their holdings every quarter for impairments, or value declines. If the price of Bitcoin drops even briefly during the period, it’s considered impaired. Companies cannot revise values upward if the market recovers.

Bullish Microstrategy, more Bullish Bitcoin.

Link(s) or it didn't happen.



Edit: Whoops.  I sent you an smerit in the other thread that you provided a link, but then I noticed that you linked back to this above link-less post of yours.

[fillippone]

Link(s) or it didn't happen.



Edit: Whoops.  I sent you an smerit in the other thread that you provided a link, but then I noticed that you linked back to this above link-less post of yours.

I choose rapidity.
My source didn’t provide me the link from BBG as the story was behind paywall only.
I wanted to timely inform my readers.
I will later edit the post with complete references.

[Unbunplease]

People like Michael Saylor are very useful to the cryptocurrency world.  Yes, perhaps some of his predictions look overly optimistic now, but he may turn out to be right in the distance. Let's wait until 2025 - and then we'll see how right or wrong he turned out to be