As the price of Bitcoin and the rest of the crypto market has finally found its way back up in recent days, good news continues to trickle in. We discuss two positive recent developments: KPMG adoption and Lightning integration by Cash App.
KPMG puts Bitcoin and Ether on its balance sheet
This is perhaps the most bullish news for Bitcoin and Ether in months. In 2020 and 2021, MicroStrategy and Tesla made headlines by putting Bitcoin on their balance sheets. But the fact KPMG Canada is doing it now is perhaps just as important. KPMG, it should be noted, is a respected accounting firm: one of the "big four" KPMG, PwC, Ernst & Young and Deloitte. KPMG sends the message: crypto is acceptable, even for traditionally minded companies.
The fact that KPMG includes ETH in their asset mix alongside Bitcoin is remarkable. No company of their stature had done this before. KPMG did not disclose how much BTC and ETH were involved. Also noteworthy: to offset the carbon emissions of the Bitcoin investment, KPMG bought so-called carbon credits.
Another important signal KPMG is sending to companies is that the accounting treatment of crypto does not have to be a problem. A common complaint from CFOs is that there is currently no crystal clear accountingframework for putting digital assets on the books. So while accountants worldwide are indeed still waiting for that clarity, it is already feasible, as KPMG proves.
Cash App enables Lightning payments
Cash app is a popular payment app in the US and UK from Block company, the CEO of which is Jack Dorsey. Now that Cash app has integrated Bitcoin Lightning Network, it means a big boost to the growth of the Lightning network, which has seen another growth spurt in recent weeks.
The Lightning network is a layer built on top of Bitcoin and much faster than the Bitcoin blockchain itself. A Lightning payment goes through within seconds and virtually free of charge. You might think: that's a normal for a payment app, right? The difference is, first, that it is Bitcoin and, second, that payments with Lightning are final. This is in contrast to normal payments where the payment app puts the payment on the books but can still withdraw it.
These are just two examples of bullish news that continues to trickle in. Firstly on the front of adoption and recognition and second on the front of technological development. As long as the news keeps coming in on these fronts, we don't need to be too focused on the daily price charts.