Bitcoin as an Accounting Innovation - 550 Words

Bitcoin as an Accounting Innovation (Coursework Sample) Content: Bitcoin as an Accounting Innovation Name Institution Appendix 1: Interview Research question: Are you aware of Bitcoin as an accounting innovation? Participantà ¢Ã¢â€š ¬Ã¢â€ž ¢s profile: Gender:Age: Date and time collected: Date: Time: Place of interview: Comments: Issues Emerging from the interview Question Response Preliminary Analysis 1.Tell me about Bitcoin? Bitcoin is an innovative accounting product that allows users to trade with globally accepted mediums. The medium is fully independent of changes seen in the financial systems such as currency fluctuations and manipulations. The currency is a globally accepted system and presents advantages over other currency systems. It is not subject to currency fluctuations and value manipulations. 2.Do you consider it as necessary? Yes. Bitcoin as an innovation does away with the traditional double-entry entry system of accounts. Instead, it uses a triplicated cryptographic digitally signed receipts as evidence that a sales contract existed. The product is in the initial stages of development. Its adoption should be supported till it has been implemented. As the world is advancing in technology, bitcoin is bringing innovations in the accounting field. This will replace the traditional form of accounting. 3.What problems has it addressed? The system that have been in existence has been unreliable. The currencies used such as the dollar, euro and pound were affected by shifts in the financial influences. The innovation address this issue because it is a universally accepted and secure currency system. In addition, it is void of currency fluctuation and value manipulation. Bitcoin has addressed several problems. One of them is currency fluctuations in currencies being used. It is a universally accepted and secure system. 4.Does it have shortcomings? The traditional accountant has relied upon the double entry system to record transactions. He, therefore, faces a challenge in using this system due to the new digitally signed receipts adopted in Bitcoin. The cryptography used in digital signing is difficult to comprehend. Furthermore, the absence of tangible transaction records makes it difficult to present accounting evidence. The innovations face two challenges that can be addressed once the system is adopted. One of them is the absence of tangible tran...