Deloitte published an operating manual for investing in Bitcoin and cryptocurrencies. Other topics under discussion were taxes, auditing, and risk management.
On the first day of the Bitcoin for Corporations conference that MicroStrategy organized, Deloitte consultants placed under discussion various essential topics, including some financial aspects of investing in Bitcoin as an institution or corporate entity.
During the Bitcoin Finance Considerations conference, accounting, tax, auditing, and risk management considerations on corporate investments in Bitcoin went under discussion.
Consultants for Deloitte, Amy Park, a specialist in blockchain and audits, and Andrew Massey, a specialist in accounting and taxation in cryptocurrencies, answered a set of questions from Phong Le, President Chief Financial Officer of MicroStrategy, who moderated the session on Tuesday.
In the first instance, Park clarified that investor sentiment has shifted from getting rich as fast as possible to save their Bitcoin savings and hodl. The consultancy noted that the trend would serve to consolidate the integration of Bitcoin into existing business services as a safeguard of value from now on. Solutions regarding blockchain networks could be under development.
Park also stated that the declaration of savings or positions in cryptocurrencies growth in terms of tax reports. This topic made the subject of taxes on Bitcoin and cryptocurrencies one of the most significant matters under discussion, “the elephant in the room.” Massey, an expert in taxation and accounting in cryptocurrencies, stated that it is essential to record BTC amounts and transactions.
A particular emphasis highlighted the importance of basic knowledge in companies that choose to set investment in Bitcoin. Park also noted that they must proceed with caution regarding the number and experience of consultants available.
Regarding the teams’ rapport, Phong Lee, who moderated the conversation, stated that group engagement is crucial and part of the Bitcoin ethic. This ethos would involve sharing the idea that technology can solve problems, “like a software company,” Lee said, referring to MicroStrategy.
Bitcoin and Risk Management: Is the Cryptocurrency an Ally or an Enemy?
There were questions about Bitcoin’s inclusion in institutional reserves to counteract the US dollar depreciation (USD). Lee answered that Corporations have realized that it is the best way to minimize risks.
To make this risk manageable, Amy Park, a specialist in the area, suggests not making decisions in the market under psychological pressures of any kind or nature. Third parties opinions would lead users to misunderstand the market and make bad choices.
Risk management must first consider the proper way and method of investing in Bitcoin. But also they must be aware of resources and their availability.
Whether through an index fund, the bond of a company with reserves in Bitcoin, or an investment firm, it must be determined what role each participant plays, internal or external to the investment entity.
“If you have others to invest, you are subject to their decisions and policies. Make sure your risk is proportionate and ensure that others take care of your investment,” Massey said.
By: Jenson Nuñez
