Bitcoin is the cryptocurrency that has received a ton of media over the last nine months. I won’t get into the practicalities of bitcoins which you can read online.
As a fledgling accountant you may believe or disbelieve in bitcoin. However, the concept of a cryptocurrency is most likely here to stay. A viable digital currency is most likely in the near term future. Several well known venture capitalists have endorsed the cryptocurrency such as Fred Wilson and Google Ventures whom invested in bitcoin startups.
The reason why accountants should keep an eye on bitcoin is that crytocurrencies use triple accounting which might render some traditional accounting and bookkeeping services as obsolete.
Every bitcoin transaction is recorded in a ledger called the blockchain. Thus, it is impossible to destroy financial records because the blockchain information is sealed with cryptography.
An auditor or an investor would not have to rely on a company’s books because every transaction would be recorded and stored independent of the two parties.