Bitcoin and Other Opensource Software Protocol Accounting Systems as an Accepted Global Monetary System

Abstract

Bitcoin, the opensource software protocol accounting system, is a revolutionary metric of finance that has increased in popularly, but more importantly, has increased substantially in value against the Dollar over the previous few years. This paper highlights the fundamentals of valuing Bitcoin by understanding how it is valued as a usable currency and then, helps to guide how it can and is being used as an alternative source of potential equity for global corporate institutions. This paper looks at the challenges faced in maintain and accounting for traditional equity, that is equity backed by the Dollar, and looks at how crypto currency is creating transparency in the financial accounting system. It identifies potential challenges in the use of this new currency against the practices of regulated accounting standards. This research also identifies what future acceptance as an alternative equity might look like with the use of Bitcoin.Cryptocurrency has a significant societal impact now and, in the future, based on the devaluing of the global financial position, the increased availability of communication technologies, and the need for valuing scarcity in a global society. While the technology that embraces Bitcoin and other similar currencies has evolved to create a more understood technology process, the incorporation of these currencies as part of a monetary system is still not understood. Global monetary systems must find a new method of maintaining a financial structure that is universally acceptable but also scarce. Being that we live in an increasingly technological world, digital currency is a natural fit and should be realized as a legal tender.

Questions to consider:

Cryptocurrency is beginning to be adopted as an alternative to the traditional monetary system. With companies like Coinbase, the largest owner of Bitcoin, looking to value their IPO at $75 billion, the investment community is beginning to pay attention (Roberts, 2021). Can cryptocurrency such as Bitcoin be an effective alternative to a traditional monetary system? If so, how can it be used as an asset for companies as a financial alternative?

Keywords: bitcoin, cryptocurrency, finance, economics, opensource accounting

DOI: 10.7176/RJFA/13-10-02

Publication date:May 31^st 2022