Cryptocurrencies: What Accountants Need to Know | AccountingWEB

Wall Street has more gamblers than Las Vegas and suppositional investments in cryptocurrencies feat the same “fear of blank out” (FOMO) used by get abounding discerning scammers since the commencement of time. 

In fact, the Wall Street Journal recently quoted a former SEC commissioner who sits on the house of a blockchain association describing initial silver officers (ICOs) and the frenzy surrounding cryptocurrency investments as “the freaking Wild West – it is ‘Wolf of Wall Street’ on steroids.” In this essay we am going to try to yield some information and credentials around cryptocurrencies and ICOs that could be applicable for accounting professionals to know.

The late, great, P.T. Barnum is rumored to have once said, “There’s a fool innate every minute,” and the birth rate of ill-informed babies contingency clearly be on an upswing because the same bad preference creation which gave us no-documentation debt loans in 2007, pet supply startups with $300 million in try collateral in 2001, 20th century llama farms, and 17th century Dutch tulip tuber futures has led to cryptocurrencies and ICOs in 2018.

For the record, cryptocurrencies are a new kind of digital income which is not corroborated by a executive banking management and initial silver offerings (ICOs) are the unregulated sales where investors sell genuine income for units of digital money. 

The marketplace capitalization of the tip 100 cryptocurrencies as we write this in early Mar 2018 is $382 billion and is vacillating extravagantly from day to day.  The tip 100 currencies as we write this embody Bitcoin, with a marketplace capitalization of $167.4 billion; Ethereum ($72.5 billion marketplace cap); as well as some other “currencies” which aria the already skinny credit of the industry, including the following:

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