Cryptocurrency Looking Promising?
Last weekend while driving for Uber, one topic that I kept overhearing in conversations between riders was the proliferation of cryptocurrencies. I found this interesting because I haven’t heard much fuss about cryptocurrency since the launch of Bitcoins years ago, and also because encrypted digital currency directly relates to MIS/ITACS. After becoming interested in how it works, I found that the major appeal to cryptocurrencies is its security factor (all transactions are verified with an algorithm-based digital signature which is almost impossible to “forge”) and its decentralization from a single governing unit (ex. US government). The technology behind this method of digital currency is called blockchain technology and it allows multiple parties to transfer and store sensitive information in a space that’s secure, permanent, anonymous, and easily accessible.
Bitcoin, the leader of the cryptocurrency market, promotes benefits of their cryptocurrency such as: person-to-person transactions (no clearinghouse necessary), lower transaction fees, universal currency, no-frozen accounts, and no arbitrary limits.
As someone who is in the business field I naturally started to wonder what major changes we would see in our economy if the hype about cryptocurrencies turns into reality and they become the standard method of trading?
Thinking back to my internship at EY we worked on auditing a lot of financial information from fortune 500 clients all around the world, so think how different that process would be knowing our economy is based on cryptocurrencies? Would the audit process be easier due to the security of cryptocurrencies?