Accounting Model for Cryptocurrency Is Not Yet Set In the United States

By Steven Anderson June 6, 2019 Off
cryptocurrencies USA

The account model for the cryptocurrency is not yet set in the United States.  The existing Generally Accepted Accounting Principles (GAAP) is not considered suitable. 

The accounting society further added, “…while no government backs cryptocurrencies, the ‘gold standard’ is long gone, and governments only influence but do not back their currencies. Instances of massive currency devaluation are not infrequent and well known. And while Bitcoin is not legal tender in the U.S., neither is Canadian dollar or any other foreign currency.”

Several authorities seek regulatory clarity.  The IRS commissioner recently stated that the agency would be prioritizing on issuing relevant guidance.  Several issues like acceptable methods for calculating cost basis, the tax treatment of forks, and cost basis assignment will be considered.

Ethereum is now following a broader downtrend. The bias for the token is towards short-term neutral trading.  The technical indicators in the 4-hour frame have become bearish and will continue to issue sell signals.  The head and shoulder pattern projects a downside of nearly $40.00.

Cardano is focusing on partnerships and newer projects.  These projects are way ahead in the vision for the digital coin.  The price of Cardano is currently trading at $0.084109.  Cardano is strong crypto and has been performing with sufficient stability for over some time.  There has been a steady growth in the cryptocurrency.  The market is currently going through a correction.  Several cryptos are moving on the positive side.  The ADA coin is expected to trade at $0.3 by the end of the year. At the current trend, it is not recommended to be trading ADA on a short-term basis.

Discussions are on about whether TRON will be convincing Buffet about Bitcoin not being a scam.  The convincing talk is expected by the investors to take place at the power lunch in which Justin Sun and Warren Buffer will be tabling over.

There are divided opinions.  Some think that Buffet’s opinion might be a turning point for the cryptocurrency industry if he changes his opinion about the Bitcoin. Some believe that this is indicative of that Buffet is moving towards the crypto.

Saying no is Buffet’s strength and integrity in his business decisions.  Others opine that the legacy investor will tell “No” and encourage charity. Whether the old world will be integrated with the new world of finance is something that will unfold at the power lunch.