A Bright Future For Cryptocurrency Accounting

Accountants are the financial backbone of any good business, and the accounting world has always thrived as money evolved throughout history. As the future of finance slowly unfolds, cryptocurrencies like Bitcoin and Ethereum (two currencies my company is currently invested in) are leading the path toward mainstream acceptance of digital currency. Many businesses are looking for better ways to track, manage and account for crypto assets, whether it’s due to their rising interest and implementations, institutional investments into crypto and fintech (financial technology) or the supercharged growth that comes with it all.

Imagine a future where digital currencies are integral to daily life and blockchain-based transactions take place between people, consumers, businesses and maybe even governments. Imagine smarter cities around the world that create an economy powered by digital currency for buying groceries, paying bills, giving loans or buying a car. When attempting to anticipate the future, we can already predict that the potential of digital currencies is colossal. But to truly tap into that potential will require innovations in the finance and accounting industries.

The future of crypto accounting will be complex and constantly evolving, but the role of technology has opened new opportunities to develop solutions that solve industry challenges.

Blockchain and crypto continue to prosper.

The media spotlight has shied away from crypto since its peak hysteria in 2017 and 2018, but there are still millions of dollars being poured into the space. Startups raised $3.9 billion through venture capital funding in 2018, and ICOs (initial coin offerings) continue to prosper, raising over $21 billion in cryptocurrencies last year.

These numbers have spurred tangible ideas that solve real challenges, like scaling performance or consensus mechanisms that build trust. They’ve also introduced new ideas like decentralized finance, an interoperable financial loan and a lending system without governance from institutions and built to be transparent and easily accessible.

A similar rise in the fintech sector depicts blockchain’s entry into the fold. A recent survey reported a 22% increase in CFOs implementing blockchain tech in 2019 — up from zero in 2018.