Blockchain and Cryptocurrency CPAs—Evolution of the Profession
The irony about needing accountants who understand digital assets is that blockchains themselves are transaction ledgers with automated record-keeping—a blockchain is a giant check register. The technical properties of blockchains means data can never be deleted, only added or read, while transactions and balances can be instantly verified with 100% certainty through the protocols themselves. Because of this, blockchains can disrupt the accounting and tax industries by automating the accounting, bookkeeping, and data entry, and eventually forcing accountants to evolve. While the industry isn’t quite there yet, today’s complexities of taxation and reporting of digital assets are creating a need for a new breed of accountant: the crypto CPA who is good at working with limited data, being a forensic investigator, understanding new protocols, and applying old frameworks to new technologies while steering clear of any regulatory risk. The adoption of bitcoin and other digital assets continues to grow exponentially despite the bear market in 2022.