 Welcome to Digital Asset News, Ticket Top Stories, and Cryptocurrency Digital Assets, and a big amount of Bite-sized pieces. Today, I want to do a follow-up to a video that we did about three or four days ago, and all it has to do with the micro-strategy information that they gave out at their recent seminar to all the different corporations that were actually in attendance, which was 8,000 plus of them. And the wording we need to take a look at is indefinite, lived, intangible asset, and what that could mean for the plethora of corporations and entities that are going to be signing up to buy Bitcoin, and what that will do to the market. So we'll go into that a little bit deeper, and we've actually got Shihan Shander Sakara, who is a registered CPA, going to come in and explain to us why this could be a big deal, but probably not so much. And in actuality, just to clear up some misinformation that has been put out. So we'll go over all that, but first take a look at what's going on the market. So today, it is Valentine's Day, February 14th. Congratulations, we made it! And it is high noon, and this is the prices that we got. And it looks like Bitcoin's doing good, 905? No, excuse me, 905. 48,000. Everybody thought it was going to break 50,000 a day. I just don't think that's actually going to happen. Ethereum is supposed to break 2000, still didn't do that. Tether's tethered, nobody cares. XRP! XRP is up, and I've heard rumblings and rumors that there is a settlement right around the corner with the SEC, or at least going through mediation. So we'll see what happens there. Cardinals are making huge strides. They signed up contracts for Sub-Saharan African countries. They're doing a lot of things with the ERC-20 converter. They're going to the Gogan era with their smart contracts. So they're looking pretty good. Polkadot, making a massive run by its own. All these things are great. And let me just take a look at the sentiment range real quick. Evencoin. I don't know what this, what that is, but apparently it could go up 25% in an hour. What the heck? If anybody has an idea about that one, that's why I use trade of chains. I don't know any of these things. That's why I click on this every so often to see what's going on. Tomo Chain, sounds like Tomato Coin. Up maybe 9% in the next hour. 6% for Quark. I've heard of Quark Chain. I don't really know what's going on. Theta Fuel, which makes sense because Theta is going up. Holo Chain. Band protocol. Band. Also another one of the oracles on top of what Chainlink has done. So that's all, hey, look at this. Theta Token could go up 5% in the next hour. I like to see that. Anyhow, that's real cool stuff. But before we get into this whole thing with She-Han and the indefinite and tangible asset, I want to take a look at my predictions that I had, which was on January 7th. I did that video, gosh, it's been now, wow, it's been over a month now, a month and a week. And these are the predictions that I had. And I just want to go over this real quick to see where we are actually at, because it's kind of interesting to see, you know, just how how wrong and how right I was. I mean, I like to be right, but in these predictions, I was hoping I was going to be wrong as far as like on the conservative side. And I was, which is good. So Bitcoin, I said, this is on January 7th. Bitcoin is at 38k. I thought I was going to go at 150k. And now today we're at around 486. Is that right? 486? Yeah, 486. So yeah, we're making progress. Hopefully it'll happen. Actually, CJ over at Marker Rebellion, he said, if we close it at 45, above 45k for this month, he says 62, we'll see in March. So I hope so. Anyhow, Chainlink, I had to predict it was at $17 on January 7th. I thought it would go to 35 bucks. I'm like, eh, you know, I never know. And I was pretty sure as far as the probability. And actually it's 3350, but I think we actually hit 35 already. So who knows what's going to happen with Chainlink? And again, these were very conservative numbers. So I'm happy to report that I think I'm wrong on Chainlink. If I could take a look at again, maybe 50, maybe 60, who knows, sky's the limit. Theta, I said I was going to go to 10, and today's at 329. So yeah, sure. Celsius. This was kind of underperformer. On January 7th, it was six bucks. Today it's 586. So I think it's going to go to 20, but who knows. Stellar, 33 cents to 51 cents. Okay. Polkadot, far and away has been exceeding. So it was $10 on January 7th. And it's 27 bucks right now. I thought it was going to go to 50, so we're halfway there. I mean, Polkadot could be $100, $150 type of token. Who knows. Tezos, 265, I thought it would go to 20 for whatever reason. And I put it, now it's at 493, so not too bad. VeChain, not too bad. Eos somehow has actually increased. I have no idea because I don't make anybody's doing anything on that. So whatever. But here's the one that I was totally wrong on. And it's Uniswap. And I just love what they were doing. And because, I mean, they, you know, did like, like a free air drop. So it was $6 and 60 cents on January 7th. Today it is $21. I had the prediction of 20 bucks. And I thought, I was like, I was like, halfway there. So we hit the prediction. The probability was a little bit low and I was totally wrong. So I'm glad to say I'm wrong on this one. Uniswap could be fantastic, could be huge. If you are one of those people who are like looking to like make the big play, the gamble, the long shot, I think defies your avenue. And if you just take a look at Uniswap, Synthetix, Ave, maybe even even a compound. I mean, those are some pretty good plays and they could pay off massively. I own Ave and I think it was going to do well. And it did. It was 122 on January 7th. And now it was, I think it touched 500 at one point. So sky's the limit for that one. But I can't even tell you how far it could go because it could be exponential. Voyager was 29 cents on January 7th. Now it's $3.68. So I think it's going to 30. But after we did that interview with Steve Erlich, the CEO, with the loyalty program, I'm going to, I'm going to make another estimation and it's not 30 bucks. It's much, much higher. Bitcoin Cash, 41. Now it's 686. Okay. And XRP congratulations XRP holders. Can't take it away from you guys. It's diamond hands. So good job for there. Anyhow, this is going to be a fantastic year. And if you think because you watch these videos every day or every other day or however long you watch these, and you probably think that everybody's like you, but you're not. You're not right. Everybody's different. And a lot of people, you were super early this, this place. So right now, you think like everything's blasting off. Everybody knows everything. No one has any idea. They know about Bitcoin and maybe Ethereum and that's it. So maybe around May, June, July, you're going to see some heavy, heavy FOMO going into November, December. It's going to be, it's just going to be massive. So really, you can do no wrong in the situation. All right. So let's take a look at what I was talking about as far as that in tangible assets. Okay. So this is what I want to talk about. This was the Bitcoin accounting treatment and tax considerations for MicroStrategy. And they had actually given this as a handout to everybody who attended the seminar, which was February 3rd, February 3rd and 4th, February 2nd, 3rd, one of those two. And I was in attendance and it was great. A lot of great information was put out. And even Michael Saylor was blown away by the people who were in attendance. He said they were expecting about 1,000 corporations, but 8,000 had actually attended. And it was all about just strategies of how to incorporate Bitcoin onto your balance sheets. And this is just one of the many handouts that they gave out. But the thing that was really important with this one, I'm going to scroll down here and blow this up, was these words here that kept popping up. It was called indefinite lived intangible assets. What the heck are those? Well, the AAC Master Glossary defines intangible assets as assets not including financial assets that lack physical substance. Sounds like Bitcoin. The term intangible assets is used to refer to intangible assets other than goodwill. Cryptos are not financial assets because they are not cash. An ownership interest in an entity or a contract establishing a right or obligation to deliver or receive cash are another financial instrument. Since they lack physical substance, they are generally considered intangible assets. Other things that they talk about as far as intangible assets would be like a trademark or a logo or a franchise. Something that really doesn't have a substance, but you can somewhat put a monetary unit on it and say it's worth X amount. So Bitcoin would be a pretty good indication of that. And they talk about this again and again. I was like, I don't understand why it's so important to talk about intangible assets. And there was a video that I watched from me, Kevin, he talked about how with intangible assets, you have some different positives. One of those is that you could put this on the balance sheet as far as Bitcoin. And if the price of Bitcoin goes down for whatever they bought it at and it goes down and they have a loss, then they can claim these losses on the books without actually having to sell it because they are a corporation. And everybody was like, wow, that's pretty awesome. And I'm like, yeah, that's pretty great because if you could imagine this, imagine if you could buy an asset and it doesn't matter if it really goes up or down, you could just say, well, we're just going to claim a loss, even though there's not really a loss, we just claim a loss on the books. And then later on, when it goes up, then you can claim it as a profit, but you could either way you do things, it wouldn't really matter. So when I was thinking about this, when I heard this, I'm like, wow, if I'm a corporation, I would have to buy Bitcoin because that is the ultimate hedge, right? Because you want to minimize your risk. So if you can buy something that if it goes down, you say, I have a loss, but you don't even sell it, you claim a loss in your taxes, and then you don't have to pay so much. But then when it goes up, you're like, well, you know, those losses don't really count because we never really sold. And then later on, if you wanted to sell at a massive $100 trillion of whatever else it is that are a couple billion as a profit, you could do that if you're in trouble because they were just on the books. So when I heard about this, I'm like, this is a win-win for everybody. However, it didn't make much sense to me. And that is why I like to bring in people much smarter and have more of the know-how. And that's why I'm going to talk to Sheehan right now. So Sheehan, I'm interested right now, he's a certified CPA, and he specializes in crypto. So let's jump in the office real quick and listen to what he has to say as to what this all entails. Okay, so those are my thoughts as far as what's going to happen with these intangible assets. So I brought on Sheehan Chandrasekara. He is a registered CPA and he also specializes in crypto. So as the data approaches of April 15th, if you need help, definitely reach out to Sheehan. I will link his information in the description below. So Sheehan, what we were talking about before off-camera, tell us why this could be a good thing for Tesla or it could just be just not really that big of a deal. So let us take it away. Yeah, thanks for having me, Dan. I see a lot of incorrect takes on this going on on the social media. So it's better that we talk about this right now. I think before we talk about this specific, I want you guys to understand that if you're a big corporation, you have to maintain your financial statements under GAP, meaning generally accepted accounting principles. Your tax return and the amount of tax that you pay is not based on that accounting method. For tax return, it's prepared based on tax accounting method. So that's something to note. There's two ways to keep books. And again, this is how things have been done for decades. So in the case of Tesla, they bought cryptocurrency in $1.5 billion in Bitcoin. The way that they're being treated under GAP is that every financial quarter or every reporting period, their internal team would evaluate for impairment. In simple terms, what that means is they would check if the cost basis of the coin has exceeded the market value at the time of that reporting date. If that's the case, they would recognize that loss for book purposes, not for tax purposes, because these are a lot of people get wrong. They're like, okay, Tesla gets it right off this loss, but we don't get to do it. That's so unfair. They're like, corporate America, Elon Musk is evil. That's not the case. You get to write it off for book purposes because they want to maintain the financial statements in a very, very conservative way. Meaning, they don't want to inflate the numbers on the financials because being conservative is one of the fundamental principles when preparing your financial statements. Now, say that Tesla wrote off, let's say, for example, million bucks, let's say billion bucks in your books. It does not mean that for tax purposes, they get to write that off. For tax purposes, impairment losses that you recognize for book purposes are not deductible. For tax purposes, they only see a taxable event, only when they sell or trade that cryptocurrency, just like individuals. Gotcha. When we're talking about the quarterly earnings reports, and we could see, let's say that the cost of Bitcoin goes down, and then Tesla says, okay, well, the cost has gone down. So we're going to show this on the books. Is that what they're talking about as far as what people look at the quarterly earnings reports and go, oh, well, they lost X amount, one billion, because Bitcoin went down. But in reality, and like you said, in reality, there is the book counterpart, and then there's the actual taxes with the IRS revenue. So they could show it over here, but in reality, what they're actually showing to the government is this. Is that correct or am I not right? I mean, so both of those accounting methods do get reported to the government, right? Because SEC is a government app. Yeah, you're right. So I mean, again, I don't know how often they do the impairment. It should be in that detail. So it could be usually every six months or every year. So yeah, if the market value has gone down, compared to how much they paid for the Bitcoin on the financial statement that's getting reported to the SEC, that's going to have impairment loss on the income statement. Again, it doesn't give you, give them any benefit. I mean, I mean, it's actually bad for them, realistically, because that's going to reduce their income. And then technically that should affect their evaluation. But you guys know about test evaluation, it has nothing to do with the fundamentals about the future and then the narrative that Elon Musk is bringing. So, but again, just to clarify, that loss is not deductible on the tax returns. Tax returns are based on a difference that are accounting rules. Yeah, because one of the things that people were talking about was, well, if this actually happens, and they say, okay, well, there is this loss on the books that it would maybe show in this earnings revenue report. And then people could say, oh, well, the example was they made $369 million last quarter. And then if their cost of Bitcoin goes down 300 million, then 300 million minus 369, it will only look like they made 69 million. And then the investors would freak out and drop the stock, it would go down, even though that's not the case. That was, I think the big issue, because people were saying, just if that happens, be aware that Tesla is still a strong company, but this actually happened, but it didn't happen. But what you're saying is, would that happen? I mean, it could have some type of impact on the price of stocks, because if Tesla technically reports like a net loss, like every quarter, because say that we are getting into a bear market, then yeah, sure, I mean, that would have an impact on the stocks. But that only if you look at the stocks on the surface, without getting into the details, because we shouldn't discount Tesla for Bitcoin going down in price, because Tesla is not in the business of running an investment fund and Tesla, they just have it on the balance sheet as a hedge. And in the next 10, 20 years, that 1.5 billion dollars worth of Bitcoin could bring in so much revenue, maybe even more than Tesla itself selling the car. So I think what I would encourage you guys to do is having that Bitcoin and the balance sheet is good, but there are so much complicated accounting treatments that they need to follow because they're SEC, the public credit company. So what you see on the net income is not necessarily what you think it is. Right. Yeah, and that makes total sense. So hopefully as time goes on, I don't think because the average buying price that they got it at was a whopping 16,000. So if it goes a little 16,000, then we could see something. But I don't think that's happening. I think in my personal predictions, it's going to peak at 150K. That's my conservative view, and then it might drop back down to 30K. So I don't think we're going to see that anytime soon. All right. She-Han, where can we find you at? I think Twitter at the CryptoCPM, pretty active there. So yeah, if you have any questions, happy to answer it. All right. Appreciate it, man. Thanks. Okay. So that's it. So for She-Han, I want to say thanks again for him to come on and take the time. I really appreciate it. He's got a very simple designed site, and I'm going to link that in the description below. It's going to talk about all about what he does. CryptoTax preparation, consultation, the whole she-bang, and you can reach out to him. We've had a number of people on the channel reach out to him. They love him. They think he's great and the service that he provides. So definitely take a look out for that. Now, also, if you are just an individual retail investor, like myself, or you're a small business owner, it doesn't really matter. There's also what I use, CryptoTrader.Tax. And right now, I will link this in the description also. If you're putting your first name on email, they do a weekly drawing where they give an unlimited tax report, $300 value, pretty good. I'm actually, I used them last year, and they were fantastic. From the time that I signed up, got everything done, took me 30 minutes. They said me $16,000. So if you want to equate time to money, these guys saved me a massive amount. And I'm using them again. I'm actually doing this weekend to get everything together and ship on over to my accountant. The only problem I'm having is access to Coinbase. So that's what's derailing me. Other than that, it's super simple. It's got an API integration, super simple. There's a link below. I actually show you how to use CryptoTrader.Tax. And there's a small little video, so check that out. Anyhow, so that is it for today. So if you watch the weekend, first of all, thanks. I appreciate it. If you liked the video, give it a thumbs up and also consider subscribing because a lot of things we talk about are pretty time sensitive, so it helps out the channel. So do that. I would appreciate it. Also, if you like these videos, it'll be two months going to pop up on your left and right, and YouTube do its magic. And that is it for today. Thanks so much. See you on the next one.