A Shift in Accounting: Bitcoin Payments

We’ve all heard about bitcoin for a few years now. Some people have been really interested, buying and selling bitcoin. Others of us, have never explored it and have just heard about it in the news. But it may be becoming more prevalent. Back in November, PwC accepted its very first bitcoin payment. PwC says they see this move as embracing new technology and using innovative business models.
What do you need to know about bitcoin?
It’s expensive. It’s high profile in the financial news world. The value of bitcoin goes up and down but is around $9,000 per coin. They are extremely volatile, just like the stock market so there is certainly some risk in their use. Because of their digital nature, there is increased risk of fraud and theft by hackers. On the other hand, there’s talk of using bitcoin as the new casino chip as it provides high levels of privacy and essentially immediate access to the funds.
EY has also explored the cryptocurrency world and joined the Bitcoin Association this past year. They see that move as preparing themselves for the revolution of digital currencies. On the flip side, many banks are staying as far away from bitcoin as possible. JPMorgan’s CEO has even referred to bitcoin as fraud and Goldman Sachs’ CEO has officially said they have no desire to develop a bitcoin strategy at this point.
So should your firm start accepting bitcoin payments?
Maybe not yet. Let’s give it some time to see how bitcoin payments play out for the firms that are accepting that form of payment and then make a game plan. Think you want to jump into bitcoin now? Give us a call and we’ll help you develop a strategy to get into the cryptocurrency market.