Central Pennsylvania Bitcoiners on Nostr: Greetings Central PA Bitcoiners! I hope you're having a great weekend. I started to ...
Greetings Central PA Bitcoiners!
I hope you're having a great weekend. I started to write an explanation of what mempools are, and why they exist, and decided to add it to the end of the newsletter.
TL;DR: The mempool cleared this weekend. Mempools are where your bitcoin transaction lives in the time between when you broadcast it to the network and the time when it makes it into a block of the ledger. What is the consequence of it clearing this weekend? Nothing much...business as usual. Network use ebbs and flows, and it'll probably mean revert in the near future.
FASB change...the Financial Accounting Standards Board made a rule change that became effective in December, 2024.
https://bitbo.io/news/fasb-fair-value-bitcoin/
If you're like me, your ears probably don't perk up when the FASB is announcing a rule change. This one, however, affects businesses who hold bitcoin on their balance sheet. Prior to this rule change, if a company held bitcoin, it was accounted for in a strange way. If they bought $1m worth of bitcoin, and the USD value increased to $1.5m, they were not allowed to account for the appreciation; the dollar value of their bitcoin had to stay marked as worth $1m. However, if the USD value decreased to $500k, they had to mark the loss. If they wanted to mark a price appreciation on their books, they'd have to convert it to dollars, which adds a step and can have negative tax ramifications. This was a wonky way to do things, and reflects the disconnect between the old analog world and bitcoin. Now with this new rule taking effect, companies will no longer have a wonky accounting disincentive keeping them from stacking sats on their balance sheet.
Our next coffee meetup is scheduled for 1pm on Sunday, Feb 23rd, at Denim Coffee in Mechanicsburg. Stay tuned for details about our next educational meetup...the topic is going to be "Bitcoin vs Crypto".
Lonelypumpkins (nprofile…94tk)
Central Pennsylvania Bitcoiners (nprofile…qadl)
I hope you're having a great weekend. I started to write an explanation of what mempools are, and why they exist, and decided to add it to the end of the newsletter.
TL;DR: The mempool cleared this weekend. Mempools are where your bitcoin transaction lives in the time between when you broadcast it to the network and the time when it makes it into a block of the ledger. What is the consequence of it clearing this weekend? Nothing much...business as usual. Network use ebbs and flows, and it'll probably mean revert in the near future.
FASB change...the Financial Accounting Standards Board made a rule change that became effective in December, 2024.
https://bitbo.io/news/fasb-fair-value-bitcoin/
If you're like me, your ears probably don't perk up when the FASB is announcing a rule change. This one, however, affects businesses who hold bitcoin on their balance sheet. Prior to this rule change, if a company held bitcoin, it was accounted for in a strange way. If they bought $1m worth of bitcoin, and the USD value increased to $1.5m, they were not allowed to account for the appreciation; the dollar value of their bitcoin had to stay marked as worth $1m. However, if the USD value decreased to $500k, they had to mark the loss. If they wanted to mark a price appreciation on their books, they'd have to convert it to dollars, which adds a step and can have negative tax ramifications. This was a wonky way to do things, and reflects the disconnect between the old analog world and bitcoin. Now with this new rule taking effect, companies will no longer have a wonky accounting disincentive keeping them from stacking sats on their balance sheet.
Our next coffee meetup is scheduled for 1pm on Sunday, Feb 23rd, at Denim Coffee in Mechanicsburg. Stay tuned for details about our next educational meetup...the topic is going to be "Bitcoin vs Crypto".
Lonelypumpkins (nprofile…94tk)
Central Pennsylvania Bitcoiners (nprofile…qadl)