What Blockchain Means For The Future Of Accounting Practices
While I haven’t been an accountant for as long as some seasoned financial professionals, I have been in the game for long enough to see trends come and go. I have witnessed the tail end of the subprime mortgage crisis and have heard stories from veterans about the dot-com bubble in the late 90s. One thing that has remained the same throughout all these experiences, based on my experiences and the experiences of my peers, is the core value of all these assets. Whether it’s a web domain, a property, a rare earth mineral or a fossil fuel, all forms of capital that I have worked with track their gains and losses based on a dollar value.
With the advent of cryptocurrencies like Bitcoin, it is entirely possible that this time-tested financial framework is about to change. Using the power of the blockchain, the entire concept of money is being turned on its head through the rise of this new data-based currency. Although our current understanding of currency has transformed within the past few decades thanks to credit cards and fiat, cryptocurrencies are the logical next step in this evolution.
This is understandably concerning for accountants, but what does it mean for entrepreneurs? Well, anyone interested in starting or maintaining a successful business is going to need a competent accounting team. As the financial landscape changes, the experience and insight needed by business accountants will change as well. Understanding this upcoming paradigm shift can better help entrepreneurs future-proof their organizations and may even help them to save money on accounting-related business expenses.