Category Bitcoin News

At the Bitcoin 2022 conference, Michael Saylor, CEO of MicroStategy and Cathie Wood CEO at Ark Invest argued that Bitcoin has never seen a more positive environment.

Saylor and Wood look at the current landscape through lenses that focus on regulatory issues and the macroeconomic environment. They also see a future where the capital markets will accept bitcoin regardless of what happens. Wood reiterated a prediction by her firm, that each bitcoin would be worth $1,000,000 by 2030.

The talk focused on the positive attitudes of previous bitcoin skeptics to the asset. Wood spoke out about what she considered a significant change for Treasury Secretary Janet Yellen. Her public speeches and commentary have repeatedly warned of the negative consequences of bitcoin and digital assets on financial markets and consumer welfare.

In a recent interview with CNBC, she stated that crypto has grown rapidly and now plays a significant part in not only transactions, but also in investment decisions for many Americans…There are some benefits to crypto and we recognize that innovation in the payment system may be a good thing.

Saylor stated that he saw President Biden’s recent executive order, which required government agencies to examine digital assets and evaluate their potential, as the green light for Bitcoin. He said that he does not know if the President of the United States has ever directed the government’s acceptance of a new asset type.

Saylor then turned to capital markets and recalled an incident where analysts at Merrill Lynch mocked him when he said that he wanted bitcoin to be bought with MicroStrategy funds. “They laughed at me, and said that they would not sell it to them, but that we wouldn’t be allowed to discuss it, or else we get fired.” He told the audience that he wired $175million out of the bank quickly. The ultimate vindication was that his inbox contained bitcoin research from Merrill Lynch that was sent to him by the same broker. As if we are covering it now. This is how we think. Every bulge bracket farm has started to cover it.

Both Wood and Saylor see bitcoin as an important hedge and store-of-value in today’s macroeconomic environment. This is amidst rising inflation and uncertainty due to the growing impact of sanctions against Russia and ongoing coronavirus outbreaks around the globe. Saylor noted that, even though the issues are unfavorable for the world, they all highlight the need for a global, non-sovereign store value like bitcoin.

Both see bitcoin as a long-term success, but the asset is vulnerable to macroeconomic headwinds in the short-term. Wood believes it is a fallacy for investors to place bitcoin in tech stocks (which are currently struggling) hoping that the correlation will decrease over time as the asset becomes more accepted.

Bitcoin’s recent struggles include a drop of 5% from $47,000 to $43,375 at 12:08 ET.

Changpeng Zhao (CEO of Binance), a global cryptocurrency exchange, met today with President Nayib Buukele of El Salvador, to discuss various investment opportunities through Bitcoin.

Binance is supporting El Salvador in its execution of Bitcoin as a legal tender, and the issuance bitcoin bonds.

Zhao tweeted that the meeting was ‘fantastic’ and added that they didn’t talk about bonds. “The word never came up. There is so much to talk. His tweet said #adoption.

This meeting is significant because earlier this week, Alejandro Zelaya, El Salvador’s Finance Minister, stated that the country had delayed its $1 billion bitcoin bond issue, originally scheduled for March 15-20. It was postponed due to unfavorable market conditions.

He had said, “I believe this is not the right time, there are moves on the planet,”

Milena Mayorga (Ambassador of El Salvador to America), and other investors were also present at today’s meeting.

Ricardo Salinas Pliego (a Mexican businessman who is also a Bitcoin holder) tweeted that it was a pleasure to meet with you President. He said, “It has been an honor to meet you today in El Salvador. Freedom is what will allow us to evolve as civilizations. #Bitcoin, I’m sure, is that currency. Hug and see you soon, thank-you! !!.’

El salvador was the first country to allow bitcoin legalization, in September 2021. The country also plans to create the first Bitcoin City in the world, which will be funded initially with bitcoin-backed bonds.

Zhao had previously praised El Salvador’s pioneering role in bitcoin adoption, and added that the presidency of Bukele would be regarded as heroic for its bold bet on future.

Bukele also voiced his dissatisfaction at the US Senate proceedings. On Wednesday, a Bill to reduce the risks to the American financial systems from El Salvador’s adoption (BTC), was passed out.

“Never in my wildest dreams could I have imagined that the US government would fear what we are doing here. He tweeted that the US government does not stand for freedom, and it is a well-known fact.

It is interesting to note that President Bukele tweeted last month that the bill had been introduced. He said, “OK boomers… You have zero jurisdiction over a sovereign, independent nation.” We are not your colony or your backyard, nor your front yard. Keep out of our internal affairs. Do not try to control what you cannot control.

According to an announcement posted on the Thai government’s website, Tuesday saw new tax relief in Thailand for crypto trading.

Finance Minister Arkhom termpittayapaisith, and Deputy Minister Finance Santi Prompat jointly revealed the results of the meeting. They confirmed that the cabinet had approved the crypto tax relief measures.

A news conference was held by the finance minister. It was revealed that traders will be allowed to offset annual losses with gains for tax due on crypto investments. Transfers of crypto tokens or cryptocurrencies will be exempted from the value-added tax (VAT), of 7%.

He also stated that the tax exemption will apply from April 2022 through December 2023 and include the trading of digital currency (CBDC), issued by the Bank of Thailand, as well as the retail central bank of Thailand.

The Thai Revenue Department released last month a guide that outlines the new tax rules for cryptocurrencies and digital tokens. An executive from a Thai cryptocurrency exchange said that the new tax rules were’much friendlier to both investors as well as industry’.

Thailand had previously proposed to impose a 15% tax on cryptocurrency transactions. After industry opposition, the plan was abandoned.

The country’s cryptocurrency trading market has seen a significant increase in the last year. According to a finance ministry official, the number of accounts for crypto trading in Thailand has increased from 170,000 in the previous year to around 2 million by 2021.

The Stock Exchange of Thailand announced last month its plans to create a digital asset trading platform.

The largest cryptocurrency exchange in America,, has warned users to be cautious of scams that may accompany its ongoing giveaway, which was recently advertised in an advertisement.

Coinbase warns users about scam

Coinbase wanted to attract new people to the emerging crypto industry and offered $15 to anyone who signed up using the QR code it displayed during the Super Bowl.

Security is super important to us.

The only way to be eligible for our $15 BTC giveaway is to sign up for a Coinbase account by following this link – https://t.co/fKHisXZJJc

It could have been a fraud if it wasn’t from us.

– Coinbase (@coinbase February 14, 2022

This warning is vital because it warns that bad actors may use the ad to create nefarious plans to rob unsuspecting people of their money.

Similar scams have occurred when these con artists took advantage of major events.

Scammers used Elon Musk’s Saturday Night Live appearance to scam more than $10 million in Bitcoin and viewers.

Coinbase is warning because the Super Bowl attracts a large viewership (estimated at 100 million), so the ad may be seen by many people.

Already there are signs that the ad had an enormous effect as the traffic spike on Coinbase platforms caused temporary downtime.

Crypto Ads Dominate Super Bowl

Many crypto-related ads were displayed during the highly anticipated Super Bowl match between Los Angeles Rams and Cincinnati Bengals. Their main purpose was to attract more investors to the emerging industry.

Advertisements featuring crypto themes were created for firms such as FTX and eToro.

Regulators Draw a Line on Crypto Ads

Regulators around the world are becoming increasingly concerned about crypto ads. Regulators tend to say that most crypto-related ads fail to highlight the risks associated with the asset class.

In an effort to limit the types of ads their citizens are exposed too, Singapore, Spain and Britain have, among other things, launched many crypto ads regulations.

As regulators continue to be attracted to crypto spag it means that many crypto ads will change the tone and language from what we already know.

MicroStrategy took a $146.6million impairment charge for its bitcoin holdings in the fourth quarter 2021. This was six times higher than the same period last years, resulting in a net loss.

Based on the most recent earnings statement Tuesday, this loss contributed to the company’s operating expenses which rose by 125% to $248m in the fourth quarter.

A firm’s impairment charge is a decrease in the carrying value for a particular asset.

MicroStrategy’s non-cash impairment charge for digital assets reflected the decline in bitcoin’s price relative to when it was bought. According to applicable accounting principles, an asset’s purchase price can be reduced if its value drops below the amount it was purchased. This is a common practice that applies only to high-cost assets.

The Tysons Corner, Virginia-based company saw digital asset impairment losses of $831 million for the year compared to $71 millions in 2020.

Since August 2020, when the firm acquired bitcoins, it has suffered around $901 million in impairments.

MicroStrategy reported December 31 that had 124,391 Bitcoin at an aggregate cost $3.8 billion and a value $2.9 billion.

The 660 bitcoins that MicroStrategy bought Tuesday for $25 million in cash, at an average price $37.865 per coin, are not included. MicroStrategy currently holds 125,051 Bitcoins.

Bloomberg data shows that MicroStrategy took impairment charges in six quarters starting from the time it acquired bitcoin. The firm was unprofitable in five quarters. The firm was profitable in eight of the nine quarters before adding bitcoin to its balance sheets.

In January, Bitcoin had its worst month since its 2018 cryptocurrency winter. The asset traded at $38,000 and lost 18% in January, well below its November 2021 all-time high of $69,000.

The Securities and Exchange Commission recently asked MicroStrategy to review its crypto accounting methods. This means that MicroStrategy cannot strip bitcoin’s price swings out of its non-GAAP accounting measures presented to investors.

Phong Le, MicroStrategy’s Chief Financial Officer, stated during the Tuesday earnings conference that he agreed with the agency’s ‘that on an going-forward basis any non-GAAP financial measure we may present in the future filings should maintain the impact of bitcoin impairment losses.

He stated that MicroStrategy’s non GAAP financial measures have not been changed in its strategy, operations, GAAP financial statements or SEC filings.

“Our noncash bitcoin impairment fees will continue to be subject to market volatility bitcoin prices,” Le stated. We will again recognize impairment charges in the first quarter 2022 due to the significant fall in bitcoin’s market price in January 2022.