Topic: Why the birth of Bitcoin triggered a revolution in accounting? (Read 217 times)

Bitcoin is the first accounting system that can provide absolute guarantees for the integrity of ledger data. Unlike double-entry bookkeeping, Bitcoin is able to do this because of its extremely low flexibility and the convenient third-party verification provided by the network.After understanding this, the emergence of Bitcoin gave us the opportunity to invest in proof of work. From an accounting point of view, Bitcoin's ability to provide absolute guarantees is unprecedented and has been underestimated by the market. In terms of accounting, Bitcoin will shine in global currencies.

I learn accounting in university and I think you are right. There is almost nothing can be manipulated if the transaction is using bitcoin. But think bitcoin will not change much in accounting. In my opinion bitcoin just improve the transparency, equality and all things than you mentioned. I don't think that it will make accountant being unemployed because sometimes a company need accountant to control, manage and manipulate company's fund so the company can be more efficient in paying tax, production, and etc

Bitcoin is an accounting revolution, and this accounting revolution will give birth to a currency revolution

Blockchain + artificial intelligence + financial management, a large number of accountants will face unemployment in the future! So if you are an accountant, please keep learning about blockchain and investing in Bitcoin. This is a compulsory course.

Yes, the growth of any new thing always takes time to settle. The society as a whole still knows too little about Bitcoin. We are only seeing that Bitcoin is changing some of the rules of our society. But few people know exactly how it changed. Maybe, we have to wait for more time, our entire human society will be radically changed because of Bitcoin.



Our commercial civilization in the past was based on double-entry bookkeeping. The birth of Bitcoin created a new set of distributed accounting methods. It is more transparent, fairer, and cannot be tampered with or faked. We will create a whole new set of human civilization on the basis of this distributed accounting method.

The birth of Bitcoin has brought great innovation, because the emergence of Bitcoin has created a new way of bookkeeping. It can be seen that Bitcoin's capabilities are much higher than what the market says. The blockchain technology of various virtual currencies does exist, enriching people's lives. The distributed accounting technology used by the blockchain cannot be modified once a record is created. Bitcoin can be so dazzling in the global currency, it can be said that the accounting field has made Bitcoin.

Perhaps not yet changed, and it may be, like most inventions, only gain its due recognition belatedly. But we can only explore this with the work people put into it. Good luck!


It can and it has, remarkably well over the last 11/12 years. I don't think a great many smart people could have foreseen just how effective it was at doing this: achieving participation balance, one that has only become stronger with time =)

thank you for your sharing. In fact, many times we don't need to have too much professional knowledge. The key is that we know its basic logic. I am writing this article now, mainly to show that the invention of Bitcoin has greatly changed economics and accounting. However, what has changed and how has changed will require more professional scholars to study.



Yes, this is where the idea of Bitcoin is clever. It can achieve balance among participants in the continuous game of multiple parties.

Oh, that's for sure! There's so much more to discover in the crypto space, especially in the coding. A lot of room for improvements and ideas of the future. The blockchain tech is changing a lot of stuff currently, but it's still too small to leave a full footprint over the industries.

Interesting.
But number two not really necessary as long as all/most participants run full nodes and take part in full network consensus.
In a fair model that easily scale, certain participants can choose to control multiple full nodes of different sizes to guarantee continuous data availability and to enable any kind of participants (most/all participants) run customizable full nodes that will hardly get too large or difficult to download/run. With this, anyone can still equally participate in full network consensus, whether you control multiple full nodes or just on mini full node. and Bitcoin ideals/principles are still preserved

In my opinion, this is an innovation revolution because technology is increasingly advanced today, why if people do not innovate according to the trends and select the old ones, they can never develop? yes, just as the birth of BTC is a spectacular step forward of human civilization and has quite an impact, because BTC has fundamentally changed a traditional currency it makes people step to a new currency called cryptocurrency.

The Bullish Case for Bitcoin. That article is very long but it is informative and high quality.

Another one is Shelling Out: The Origins of Money. Bitcoin can fix the inflation of governmental-backed economy.

So it's like Double bookkeeping, but with decentralization in the mix did I get that right? I don't think it's a "revolution", but it did improve the current system. It's like using the current system we have and then slapping some fixes here and there to better fit the idea of what Satoshi wanted to make. The core is still the same, but it switched it around on some parts instead so I don't think it can really be described as one. It's an ingenious idea though, seeing as a lot of people really like it for it's idea of being your own bank.

Why did the birth of bitcoin spark a revolution in accounting? the emergence of bitcoin gives us a new feel, gives a new civilization, increases our knowledge, and bitcoin teaches us to manage our finances, accounting in bitcoin teaches us to be more free to manage the bitcoins we have, and certainly bitcoin civilization provides a different way of thinking in our search money, maybe in the future people who play in bitcoin, will increase a lot...

Reminds me when a few years ago some economists were claiming Bitcoin's actually the birth of a new form of accounting. Some like here just called it triple-entry accounting, but many came forth to say it wasn't actually so, still double-entry but with the addition of a consensus network. I don't hear the term bandied around anymore.

I guess you're with the latter?

Disclaimer: not an accountant so don't know how to go for or against, just sharing.

the emergence of bitcoin sparked a revolution in accounting, we have been given a very good weapon by satoshi, now we just have to learn to understand the weapons that have been issued by satoshi, at first it was very difficult, but if we continue to learn and understand how it works maybe this will feel easy, it will It will be an amazing battle, hopefully we can use the opportunity that has been given.

Yes, we are far from exploring the world of encryption, we have just taken a small step. In my plan, the crypto world will completely transform our world, not only from the currency level, but also from all aspects of society. In the future, Bitcoin becoming the world's unified currency is only the first step, and the governance of Bitcoin will also be applied to all fields of human society. Ultimately, with Bitcoin as the cornerstone, mankind builds a brand new civilization. This is the direction of future evolution of human civilization. Maybe in the future we will need 10 or even 50 years to achieve this.

Looks like Satoshi's vision is coming soon when he said about he will gonna free us from the use of the banks to transact our money. Maybe after a few years from now, we won't be needing any bank since bitcoin will suffice us and the good thing about it is decentralized where you don't really need to give them your information just to hold a fraction of it or even though you are one of those whales that currently hold the biggest amounts of bitcoin and no one knows you because that's how it works. It hides us from the world and the banks hate it so much.

Well, I can tell you this...... Doing your annual tax return is challenging to say the least, because you have to prepare so much more now to be able to work out the Capital gains on your investments and even if you are a merchant, you still have to calculate the revised profits after you sold the Crypto currencies you earned through sales. 

A payment processor makes things easier, if they convert all the sales to fiat currencies immediately... but if you hoard some of those coins and sell it later, then things become very complex when it comes to tax calculations. 

Wonderful, this will be a battle to change the entire process of human civilization. We now have methods and weapons in our hands. But we are still very young, and we are not yet familiar with the weapons that Satoshi  gave us. We are still exploring how to use it. More and more people are beginning to awaken. I believe that Bitcoin will change everything eventually. It will come soon.

I think Satoshi pulled out a definitely new and ingenuous way of keeping records of a financial history, but I don't think it's that much of a revolution yet. I think there is still so much time to pass before an actual revolution happens. Right now, people and corps are still testing the grounds to see how they can make use of the blockchain tech to make more money or change the way things work around the world. There's imo still a very long way to go before we can consider this truly revolutionary.

After the birth of Bitcoin, people often say that Bitcoin has changed our economic system, business system and financial system. Bitcoin redefined assets and currency. In the process that Bitcoin changes people's economic lives, the changes in accounting are worthy of our attention. Bitcoin triggered a revolution in accounting

Bitcoin changed the accounting method of accounting and created a distributed bookkeeping method based on the double entry bookkeeping method. and promoted the reform of accounting.

We can say that accounting is the foundation of economics. At present, people's economic activities are all based on the bank account system, and the accounting rules of which are all based on double entry bookkeeping. Double entry bookkeeping has a long history. In Europe in the 12th to 13th centuries, due to Italy's developed money economy at that time, double entry bookkeeping had already appeared in cities such as Venice.

Why is this bookkeeping system called double entry bookkeeping? Because every transaction is recorded in at least two different accounts. The result of each transaction will be recorded in at least one lender and one borrower's account, and the total amount of both parties is equal. Double entry bookkeeping can reflect economic activities more completely, allowing users to understand the entire process of each economic activity and know the final result.

In our economic and business activities over the past 500 years, modern civilization has been built on the basis of double entry bookkeeping accounting. Although it improves the efficiency of economic activities and records the entire process of economic activities, but it is inevitable that there will be fraud problems caused by false accounts. At present, after more and more companies are listed on the capital market and publicly raise funds, the problem of "false accounts" is widespread in these listed companies. Many listed companies do not rely on their real performance to promote the company's development, but deceive users by creating fake accounts. This asymmetry of information between companies and users has caused a lack of trust.

After the birth of Bitcoin, the distributed bookkeeping method it pioneered reformed accounting in another way.

Bitcoin's economic system uses distributed ledger, which is composed of many equal nodes, and each node has all the data. This means that every user of the system has an automatically updated ledger that contains every transaction that occurs in the system. The nodes in the system reach a "consensus" on the transaction through the consensus mechanism. Once the transaction is confirmed, no one can tamper with it. In the Bitcoin system, a copy of each transaction will be broadcast to users across the network, instead of being controlled by a centralized institution.

In this way, the distributed ledger can not only record economic behavior, but also other data, and at the same time tell every user that this data cannot be changed. Distributed ledger has the following characteristics：

• 1.Transparent：All accounting information is transparent, anyone can check them.
• 2.Equality：All bookkeeping nodes are equal, there is no difference between them, and everyone has the same status.
• 3.Shared：All bookkeeping nodes share bookkeeping information, and all record all information in the ledger.
• 4.Immutable：When the ledger information is confirmed by consensus, unless a 51% attack occurs, all ledger information cannot be tampered with.
• 5.Holographic：Bitcoin ledger can not only record the transfer of funds, but also record the transfer of information, integrating funds and information transfer.
• 6.Decentralized：The Bitcoin ledger is a common accounting by multiple nodes and maintains a ledger together, so there is no center.

This is my opinion, what about you ?