Understanding Bitcoin: A CPA's Perspective

Mark Astrinos and David Oransky discuss Bitcoin's role in modern investing, addressing its speculative nature, practical uses, and potential as a long-term store of value. They explore how advisors and clients can approach Bitcoin thoughtfully, balancing skepticism with understanding.

Key Topics Covered:

1. Foundations of Investing:
   • Saving vs. investing and the speculative nature of all assets.
   • Bitcoin’s similarities to "digital gold" and its unique network benefits.
2. Bitcoin’s Role in Portfolios:
   • How Bitcoin compares to traditional assets like stocks, bonds, and gold.
   • Its potential as an inflation hedge and long-term store of value.
3. Practical Applications:
   • Bitcoin enables global, permissionless transactions and portable wealth.
   • Its scarcity-driven dynamics make it appealing amid fiat currency concerns.
4. ETFs and Adoption:
   • Bitcoin ETFs simplify access for investors and advisors.
   • Direct ownership offers unique benefits but requires technical knowledge.

Key Takeaways:

• Advisors should educate themselves about Bitcoin’s potential as a legitimate asset class.
• Even a small allocation to Bitcoin may offer diversification and inflation protection.
• Start with reputable resources like Fidelity and BlackRock or AICPA's PFP Division materials.

Resources Available:

A three part deep dive into bitcoin is available:

• Why you need to take Bitcoin seriously - part 1
• Why you need to take Bitcoin seriously - part 2 
• Why you need to take Bitcoin seriously - part 3.

A video with slides

• Understanding Bitcoin. 

This is a podcast from AICPA & CIMA, together as the Association of International Certified Professional Accountants. To enjoy more conversations from our global community of accounting and finance professionals, explore our network of free shows here. Your feedback and comments welcomed at podcast@aicpa-cima.com