Managed Bitcoin as a Service

December 13, 2023:

The accounting standards rules for holding Bitcoin have changed. Now is the time to identify whether adopting a Bitcoin standard within your personal or corporate treasury makes sense. See the following link to the Financial Accounting Standards Board (FASB) update regarding their fair value rule change regarding Bitcoin.

https://www.fasb.org/page/getarticle?uid=fasb_Media_Advisory_12-13-23

Why would an individual or business want to hold Bitcoin on their balance sheet?

There are several reasons why an individual or business might want to hold Bitcoin on its balance sheet:

  1. Diversification of Assets: Bitcoin is often considered a non-correlated asset, meaning its value does not necessarily move in sync with traditional financial markets such as stocks and bonds. Holding Bitcoin can provide a level of diversification for an investment portfolio, helping to spread risk.
  2. Inflation Hedge: Some view Bitcoin as a hedge against inflation. Unlike traditional fiat currencies, which can be subject to inflationary pressures, Bitcoin has a capped supply of 21 million coins, making it potentially attractive in environments where there are concerns about currency devaluation.
  3. Future Payment Method: Accepting Bitcoin as a form of payment or holding it on the balance sheet may position a business to participate in the growing acceptance of cryptocurrencies as a means of exchange. This is particularly relevant in industries where there is a growing adoption of digital currencies.
  4. Speculative Investment: Some may see Bitcoin as a speculative investment opportunity. The volatile nature of Bitcoin’s price can present opportunities for capital appreciation.
  5. Interest from Stakeholders: Holding Bitcoin on the corporate balance sheet could attract interest from stakeholders who are interested in or supportive of cryptocurrencies. This might include investors, customers, or employees who appreciate the company’s forward-thinking approach.
  6. Store of Value: Bitcoin is often referred to as “digital gold” and is seen by some as a store of value. Individuals and businesses may hold Bitcoin to preserve capital in the long term, especially in times of economic uncertainty.
  7. Technology Adoption and Innovation: Some see holding Bitcoin as a way to align with technological innovation. Being involved in the cryptocurrency space can be seen as forward-thinking and a way to stay at the forefront of technological advancements.

Is Bitcoin mining ESG friendly? Read KPMG’s latest report:

https://kpmg.com/kpmg-us/content/dam/kpmg/pdf/2023/bitcoins-role-esg-imperative.pdf

It’s essential to note that holding Bitcoin also comes with risks, such as price volatility, regulatory uncertainties, and cybersecurity concerns. The cryptocurrency landscape is dynamic, individuals and businesses should carefully evaluate the potential benefits and risks before deciding to include Bitcoin on their balance sheet. AutumnTECH can assist with mitigating the cybersecurity risks associated with holding Bitcoin as a bearer instrument asset.

How we can help:

1. Choose a Bitcoin Wallet Type:

  • Determine the type of wallet that suits your personal or business’s needs. There are various options, including software wallets, hardware wallets, and paper wallets.

2. Install the Bitcoin Wallet Software and Hardware:

  • Download and install the chosen wallet software. If a hardware wallet is selected, discuss the benefits or each available hardware option.

3. Secure the Bitcoin Wallet:

  • Implement security measures, such as enabling two-factor authentication, setting a strong password, and considering multi-signature capabilities for enhanced security.

4. Generate Bitcoin Wallet Address:

  • Generate a Bitcoin wallet address. This address is used to receive Bitcoin. Assist with unspent transaction output management (UTXO)

5. Backup the Bitcoin Wallet:

  • Create a secure backup of the wallet’s recovery seed or private keys. This is crucial in case the wallet is lost or inaccessible.

6. Educate Users:

  • Train relevant personnel on how to use the wallet, including sending and receiving transactions. Emphasize security practices to prevent unauthorized access.

7. Select Bitcoin Node Software:

  • Choose Bitcoin node software depending on the specific requirements for the individual or business.

8. Hardware Requirements:

  • Ensure that the hardware meets the requirements for running a Bitcoin node.

9. Download and Install the Bitcoin Node Software:

  • Download the chosen node software and follow the installation instructions. This process may take some time as the software downloads the entire Bitcoin blockchain.

10. Configure the Bitcoin Node:

  • Configure the node settings according to unique preferences. One size does not fit all. This may include setting up connection options, choosing data directories, and adjusting security features.

11. Synchronize with the Bitcoin Network:

  • Allow the node to synchronize with the Bitcoin network. This process verifies and downloads the entire transaction history of the Bitcoin blockchain.

12. Monitor and Maintain:

  • Regularly monitor the node’s status and ensure it stays synchronized with the network. Keep the software updated with the latest releases and security patches.

13. Connect to Other Bitcoin Nodes:

  • Optionally, configure the node to connect with other Bitcoin nodes to contribute to the decentralization of the network.

14. Educate Stakeholders:

  • Educate relevant stakeholders about the importance of running a Bitcoin node, such as contributing to the network’s security and resilience.

AutumnTECH can provide ongoing support to address any technical issues, updates, or questions that may arise. Stay informed about developments in the Bitcoin ecosystem to ensure the wallet and node operations remain secure and up-to-date.

Remember that the specific steps and considerations may vary based on the chosen wallet, node software, as well as the technical requirements and preferences. Always prioritize security and stay informed about best practices in the cryptocurrency space.

Book A One Hour Bitcoin Strategy Technical Consultation – $100

Bitcoin stands at the forefront of a financial revolution, challenging the status quo and offering a glimpse into the future of decentralized finance. As we continue to witness its impact and evolution, let’s stay curious, engaged, and open-minded about the transformative potential of this groundbreaking technology. Thank you for taking the time to explore the power and potential of Bitcoin. We look forward to starting your Bitcoin journey with you.