Accounting and Crypto Currency
What Are Cryptocurrencies?
The money of the future, cryptocurrencies are the digital currencies like bitcoin, peercoin, and litecoin. The encryption techniques are required to control use and release of this digital money. Unlike regular currencies, such as US dollars or euros, cryptocurrencies aren’t regulated by any government, banks, or any other centralized financial authorities.
Cryptocurrencies rely on the Internet to confirm transactions and ensure value. The network users verify all the transactions, which become a matter of a public record. It guarantees that the same digital currency isn’t spent twice by one person.
What are the most popular cryptocurrencies?
There are over 700 cryptocurrencies, which are in use these days. The most popular ones though, are easier to spend and regulate. They are:
Bitcoin. It’s the most valuable cryptocurrency that can even be spent at the world’s retailers such as Victoria’s Secret or Amazon.
Litecoin. This one is accepted by a growing number of retailers worldwide. Litecoin can become the leading cryptocurrency if it releases 84 million coins in the next years.
Dash. It involves masternodes to ensure anonymity and complete several transactions at once. Masternodes are the servers that help to keep the copy of the real-time blockchain. Dash doesn’t have a public ledger, making it harder for others to see your transactions and savings.
Blackcoin. This cryptocurrency is based on the proof-of-stake concept. Unlike dash, blackcoin is viewable so can be easily audited by anyone.
Peercoin. It’s a peer-to-peer cryptocurrency that utilizes proof-of-work and proof-of-stake systems. There’s no limit on the number of the coins minted, albeit it’s created to get a 1% inflation rate.
Dogecoin. It’s designed Scrypt, the hash algorithm that was supposed to stop companies and corporations from monopolizing its mining. Although it didn’t work, dogecoin has a significant following.
How cryptocurrencies work
You release cryptocurrencies through mining – a process that involve solving a computational puzzle called a hash. The cryptocurrency records are set in stone. No transaction can be reversed. The blockchain is that digital public ledger where each transaction is recorded. Unlike other currencies, cryptocurrencies exist only digitally.
Many people buy cryptocurrencies while others receive them. When you invest in cryptocurrencies, you don’t get any shares – only digital tokens or coins. Whether you receive or buy cryptocurrency, you get a digital key to the currency address. You can use the key to access and approve or validate transactions.
You’ll also need to create a cryptocurrency wallet keep your key safe. There are hardware, paper, mobile, online, and desktop wallets to choose from. Each wallet has its pros and cons and your final choice highly depends on your frequency of using cryptocurrencies.
What are the biggest benefits of cryptocurrencies?
There are many great perks of cryptocurrencies, and some of the best ones are:
Risk-free: If you’re a seller, receiving payments using cryptocurrencies has no risk for you. The blockchain prevents the likelihood of stopped payments and makes the whole process easier.
Accessibility: You don’t need to have a bank or a line of credit to receive or make payments online.
Identity protection: When you pay with a debit or credit card, you need to submit secret banking information. This information is easy to compromise and steal these days. Cryptocurrencies are sent directly to recipients without requiring any information except a total amount you’re going to send.
Ownership. You have a digital key and you’re the only one having access to your cryptocurrencies. Unlike cash you deposit at a bank, cryptocurrencies can’t be limited or frozen by any bank worker.
Low transaction fees. Since miners are rewarded cryptocurrencies from the network, there are usually no fees or little ones for main transactions.
What are the biggest disadvantages of cryptocurrencies?
Despite the safety of using cryptocurrencies, there are several disadvantages to consider. First of all, it’s important to understand that cryptocurrencies are just growing. Just like a new program has bugs, each cryptocurrency has drawbacks.
Secondly, cryptocurrency exchange rates are floating. It means the amount you receive or pay one day might be astonishingly different in a day/week/month. The market isn’t settling down, which is why it’s impossible to predict which rates will be.
Finally, cryptocurrencies aren’t real money and they’re not credit or debit cards accepted at any store. If you’re looking to invest in a real estate, for example, be careful with such currency.
Though cryptocurrencies are rather new, they offer a new safe way of spending and storing cash anonymously. If you don’t want to use the services of a centralized bank or any other financial institution, consider cryptocurrencies.
Introduction to Accounting Degree
In the accounting and finance industry, there are many jobs related to dealing with numbers. Beginning from the entry-level positions such as budget assistant, bookkeeper, and cost and accounting clerk to various senior positions such as account manager, chief accountant, financial analyst, chief financial officer and budget directors, there is really no limit to the types of positions which can be occupied if you have an accounting degree.
The Importance of an Accounting Degree
As many activities in a small or large organization require the knowledge of accounting, your services will always be required if you have an accounting degree, and even if you find yourself out of job, you will definitely get another one within a short time. This is a very good thing with having an accounting degree.
No organization can ever succeed without the presence of an accountant; the accountant is the person responsible for recording financial transactions and the preparation of financial statements. As an accountant, you are responsible for carrying out cost analysis like comparing the cost of a technology or project to determine the benefits to be derived in terms of financial gains.
You will be consulted when your employer wants to take important steps, for instance, during mergers and acquisitions; during such events, you will be expected to analyze the situation and give an opinion based on the financial records of the companies involved. You will also help in the development of IT programs to help in monitoring and managing packages related to employee benefits, financial results and tax avoidance. The information provided by you in this case will be used in developing the future financial activities of the organization. Therefore, it is necessary to have an accounting degree.