Bitcoin surges after Musk says Tesla could start accepting it again

Yahoo Finance's Myles Udland, Julie Hyman and Brian Sozzi discuss bitcoin price action after Tesla CEO Elon Musk suggested the company could accept the cryptocurrency in the future.
Video transcript
MYLES UDLAND: We'll be talking over the weekend about the tweets from Elon Musk which I think we uploaded here from YFi Interactive. Musk talks about the future of Tesla and accepts Bitcoin as a means of payment. May I help you. Elon Musk catches flak. This is from "Cointelegraph".
What we saw-- Okay, so we have some tampering with Musk's tweets. I think there was a tweet from Musk himself. There you go. So we sold 10% of our inventory to confirm that Bitcoin could be liquidated easily. If it is confirmed that the miners are using 50% clean energy consumption, a positive future trend, Tesla will allow Bitcoin transactions again.
So I don't know I don't find it all that interesting that Elon Musk is tweeting about Bitcoin, but in that regard, I find Tesla's involvement with Bitcoin interesting. As the Journal noted in a cover story this morning, there are many challenges to keeping Bitcoin on your balance sheet for a company. Because it can only be written off in value unless you sell it.
So, I guess folks, the longer this story goes on, I suspect that Tesla didn't know this before they bought Bitcoin and didn't know that if they kept it on their balance sheet and the value, they couldn't mark the value of Bitcoin of coins rose, and that if the price of bitcoin fell below their last cost base in a quarter, and only if they sold bitcoin, they would actually be forced to do the opposite, could they realize an appreciation in their bitcoin holdings.
And I think as more topical - because it is - indefinitely - I'm forgetting the exact term the "Journal" has there, but the way Bitcoin is classified on the balance sheet makes it so again that you do can only write it off in value unless you sell it for a profit, and then you can realize that profit. And I think until that changes, Julie, that will make things harder for companies that accumulate bitcoin on the balance sheet as something like basically an investment account or an investment income. You cannot recognize it as an investment gain.
JULIE HYMAN: Yeah, that seems like a problem, you'd think. I mean, and I'll just look at the bitcoin chart one more time. Do you remember exactly when Musk first said they were going to put Bitcoin on their balance sheet? I will not reveal the exact date. Do you remember from your head?
MYLES UDLAND: No. Not out of my head.
JULIE HYMAN: OK, definitely if you look at the bitcoin chart, right, and you look at the range we saw and my drawing again, sorry. You know, obviously we've seen more in the past few months - February. There you go
I mean, and yes, we had the lead, but then we mostly had disadvantages as well. Even if they tried to take advantage of it, it would be difficult to do because we've seen the circle pretty much come full circle on Bitcoin - since Tesla took its position on it. So I don't know It's just - the volatility alone on a balance sheet, even if you were to rate it up and down, would be kind of a nightmare.
BRIAN SOZZI: Yes, and you want to get to know the power of Elon Musk and Bitcoin? I mean, just jump over to the Yahoo Finance trend ticker page and you will see Dogecoin popping, Bitcoin one of the top trend tickers on our website, along with Riot Blockchain. So it could be an interesting morning for this room.
But Julie, I really like your drawing skills. Maybe I can pull a Dogecoin dog over my face. What do you have? Can you do it in real time?
JULIE HYMAN: I can't.
BRIAN SOZZI: Okay, maybe tomorrow.
MYLES UDLAND: Bitcoin--
[INTERVIEWS]
- digital assets. Bitcoin and other digital assets are considered intangible assets with an indefinite lifespan on a company's balance sheet. They are not investments and they are not currencies. I mean, I think if I were to advocate regulatory changes and I speak on behalf of the crypto space in general, maybe I would like to change that because I mean I don't think the idea of ​​keeping Bitcoin on your balance sheet is going to be too Tracking and then seeing the increase in the value of some of your cash or equivalents is inevitably a bad strategy. The problem is that it just isn't possible right now, considering how these assets are classified.
And so we always hear that crypto folks want to welcome regulatory changes. Well, that might make it more appealing to that balance sheet adoption meme that we all heard so much about over the winter when Tesla first did it to really come true. Remember, we had guests who said that every company will have Bitcoin on their balance sheet. I think given the accounting difficulties involved, it is unlikely that this will happen anytime soon.
In this article:
BTC-USD
+1.85%
DOGE-USD
+1.03%
ETH-USD
+ 4.48%
LTC-USD
+ 5.69%

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