What is the Future of Crypto, and How Will Crypto Fit In To the Traditional Financial Reporting Process?
Cryptocurrency is making a splash in finance and accounting, in spite of its relatively unpredictable path thus far. Visit: http://fyisoft.com/
Cryptocurrency is making a splash in finance and accounting, in spite of its relatively unpredictable path thus far. Visit: http://fyisoft.com/
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<strong>What</strong> <strong>is</strong> <strong>the</strong> <strong>Future</strong> <strong>of</strong> <strong>Crypto</strong>, <strong>and</strong> <strong>How</strong> <strong>Will</strong><br />
<strong>Crypto</strong> <strong>Fit</strong> <strong>In</strong> <strong>To</strong> <strong>the</strong> <strong>Traditional</strong> <strong>Financial</strong><br />
<strong>Reporting</strong> <strong>Process</strong>?<br />
<strong>Crypto</strong>currency <strong>is</strong> making a splash in finance <strong>and</strong> accounting, in spite <strong>of</strong> its relatively<br />
unpredictable path thus far. As an accountant, educating yourself on emerging trends in<br />
accounting technology <strong>and</strong> how it will affect your career <strong>is</strong> incredibly important.<br />
While Bitcoin prices went up in May 2019, it’s been a bumpy road since it was founded in<br />
January 2009. Prices are expected to climb, but predictions for <strong>the</strong> future state are difficult to pin<br />
down. One source predicts that by 2020, Bitcoin will be priced between $16,500 <strong>and</strong> $17,500.<br />
The recent surge in May has been credited to comments made by Micros<strong>of</strong>t <strong>and</strong> Bakkt at<br />
Consensus 2019 in New York, <strong>and</strong> some believe that current U.S.-China trade tensions also<br />
contributed.<br />
Some, like Tim Draper, CEO <strong>of</strong> Draper Associates, believe that we are just a couple <strong>of</strong> years<br />
out from everyone using cryptocurrency.<br />
O<strong>the</strong>rs worry that cryptocurrency <strong>is</strong> a breeding ground for crime.<br />
Still o<strong>the</strong>rs are leery due to <strong>the</strong> lack <strong>of</strong> cons<strong>is</strong>tency over <strong>the</strong> past 10 years. And, Bitcoin <strong>is</strong> using<br />
basic blockchain technology, while competitors are using newer, sleeker technology that gives<br />
<strong>the</strong>m a leg up.<br />
<strong>In</strong> spite <strong>of</strong> <strong>the</strong> naysayers, if performance <strong>is</strong> any factor, Bitcoin could see an increase to<br />
$100,000--or higher--in <strong>the</strong> next five years. At th<strong>is</strong> point it <strong>is</strong> still a highly changeable, volatile,<br />
<strong>and</strong> difficult to predict animal.<br />
But how do we h<strong>and</strong>le <strong>the</strong> accounting side?<br />
The past <strong>and</strong> present <strong>of</strong> crypto accounting<br />
<strong>Crypto</strong>currencies depend on <strong>the</strong> internet for <strong>the</strong> maintenance <strong>of</strong> accounts <strong>and</strong> transactions, <strong>and</strong><br />
Bitcoin specifically has gained relatively mainstream acceptance in today’s markets due to its<br />
efficient accounting processes.<br />
<strong>In</strong> traditional accounting, accounting make double entries in <strong>the</strong> books--a debit side <strong>and</strong> a credit<br />
side. Bitcoin, however, uses a triple entry method. The transactions are recorded in three<br />
separate databases <strong>and</strong> <strong>the</strong>n d<strong>is</strong>tributed across <strong>the</strong> internet, making <strong>the</strong> transactions<br />
trustworthy <strong>and</strong> verifiable. Th<strong>is</strong> makes Bitcoin a reliable form <strong>of</strong> currency.
Bitcoin <strong>is</strong> automated, so its accounting practices are inherently less labor intensive. But, Bitcoin<br />
cannot address all <strong>of</strong> <strong>the</strong> accounting requirements <strong>of</strong> an organization, so master’s level<br />
accountants will still be in high dem<strong>and</strong>.<br />
FYIs<strong>of</strong>t keeps you abreast <strong>of</strong> changing trends<br />
Founded in 2012, FYIs<strong>of</strong>t has quickly grown into a leading provider <strong>of</strong> cloud financial reporting<br />
s<strong>of</strong>tware. Over 8,500 finance pr<strong>of</strong>essionals around <strong>the</strong> world rely on FYIs<strong>of</strong>t for a faster close.<br />
As technologies advance, FYIs<strong>of</strong>t has got you covered. Schedule a demo today.
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