Cryptocurrency: Historical Development, Operations and Accountability

Abstract

The functioning of financial markets is impacted by the global cryptocurrency market, which also has significant effects on entire economies. Cryptocurrencies, which are still a relatively new idea and are constantly evolving and changing the financial landscape of the world, have started to take hold in a variety of industries, from financial markets to day-to-day commercial life. A new financial era has allegedly dawned with the advent of cryptocurrency. Cryptocurrencies are projected to become more prevalent and a part of daily life in the future as their popularity grows every day. Virtual money and Bitcoin have been discovered to have high levels of transaction volumes in the majority of nations. By looking over the existing literature and previous studies, the study used an exploratory methodology. Many businesses already pay their employees with bitcoins. The purpose of the study is to provide details on virtual currencies, including information about how each cryptocurrency, including Bitcoin, functions and its characteristics, as well as to make assessments regarding the accounting of their business dealings using Bitcoin in accordance with international accounting standards. According to the findings, the held cryptocurrency should be revalued at the end of the term, and any disparities resulting from gains or losses should be taxed. The importance of conducting studies for this is also underlined, as is the control over the cryptocurrency owned by businesses and the transactions done with it. Although the intangible asset accounting method is now thought to be the most appropriate way, future advances will inevitably lead to the creation of a new account class or group for cryptocurrencies.