Discussion Post 5: Cryptocurrency: Challenges in Accounting A+ I am no expert on cryptocurrencies, nor do I own a single digital financial asset-so, let's get that out of the way. I am, however, intrigued with blockchain technology, cryptocurrency valuations, and the growing popularity of using digital assets as transactional currency. Satoshi Nakamoto (pseudonym) is credited with designing the first blockchain database and soon thereafter, in 2009, the first bitcoin transaction was recorded. Today, the total market capitalization of cryptocurrencies is in the $Trillions, and thousands of companies world-wide including Tesla, Starbucks, Home Depot, and ATT accept digital currency as payment either directly or via third-party transactional agents such as Bakkt, Flexa, BitPay, and others. Renowned economist, Nouriel Roubini C, has long held a skeptical view of cryptocurrencies, comparing their rise in popularity with notable financial scams and asset bubbles such as Tuin Mania in 1634-1637 and the Missission Scheme x 1718-1720. Twitter and Square (Block) founder, Jack Dorsey, on the other hand, is a leading champion of the cryptocurrency crusade and believes Bitcoin--the most popular digital currency--will eventually replace the mighty U.S. Dollar. Regardless of your views, I do not wish this discussion to migrate into a defense or denial of whether cryptocurrencies present a great investment opportunity, or equate to nothing more than fool's gold. Rather, I want the class to focus od accounting issues related to cryptocurrencies. I have included four related articles to help stimulate your research of accounting issues related to cryptocurrencies. The first, "Explainer: Bitcoin on your balance sheet", provides an overview of how cryptocurrency is recorded under U.S. financial accounting standards. Next, "How Are Cryptocurrencies Classified In GAAP Financials", examines issues related to the Financial Accounting Standard Board's (FASB) current classification of cryptocurrency and how this designation affects a company's balance sheet as the valuation of cryptocurrencies change over time-often wildly increasing and decreasing in value in a short period of time. The third resource, prepared by Deloitte, one of the BIG 4 accounting firms along with KPMG, PriceaterhouseCooper (PwC), and Ernst & Young, provides accounting and tax considerations for companies introducing crypto payment into the operational strategy. Lastly, I have provided Tesla's most recent 10-K report. This document will provide a look into the belly of the beast to see first-hand how crypto-assets are presented on the balance sheet. I highly encourage you to read the notes accompanying the financial statements (p. 69) in regards Tesla's reported gains/losses from digital currency during the period ending December 21, 2021. We'll open this discussion with the following scenario: KT Waits, Senior VP and Chief Financial Officer, Saoirse Technologies, is considering a digital currency strategy to complement the company's operations You, along with other senior-level managers have been invited to a meeting to discuss accounting and tax issues that could impact the company's acceptance of cryptocurrency payment. Note: Online discussions are an integral leaming component for this class. Periodically, a discussion topic will be presented to the class. Students should respond to this topic promptly. Discussion posts are graded on quality, not quantity. All responses must demonstrate an understanding of the topic under discussion and include concepts covered in the class. It is expected that each student will make an initial post and provide at least one response to a classmate's post. There are no minimum word count requirements, however, you should prepare to make an initial post consisting of approximately 2-3 paragraphs. Responses to a classmate's post should be thoughtful, relevant, and include approximately 1-2 paragraphs. The attached rubric will be used to grade discussion board posts