The cryptocurrency industry is a rapidly evolving space, with new developments and trends emerging at an unprecedented pace.
In a recent webinar, What Accountants Need to Know About a Crypto Platform, Gareth Cleverly took us through the hot topics in the cryptocurrency industry. One of the most significant hot topics in this sphere is the exponential growth of cryptocurrencies. From a mere 1500 types two and a half years ago, the number of different cryptocurrency assets has skyrocketed to over 30,000 today. This rapid expansion reflects the increasing interest and investment in this digital asset class.
However, it's important to note that not all cryptocurrencies are created equal. While Bitcoin is often touted as the only crypto worth knowing about, the reality is that there are thousands of other cryptocurrencies that hold potential value. The sheer diversity of these digital assets underscores the vast opportunities and risks inherent in this burgeoning industry.
Another critical issue in the cryptocurrency industry is the prevalence of hacks and scams. Contrary to popular belief, over 98% of all hacks and scams in the financial industry, including cryptocurrency, are targeted at individuals rather than platforms. These scams typically involve tricking individuals into revealing sensitive information, which can then be used to access their financial or crypto accounts.
For instance, the infamous F T X scam was not a result of the cryptocurrency itself being hacked, but rather an individual exploiting others' trust. The owner of F T X stole from his clients, highlighting that the problem was not with the security of the cryptocurrency, but with the actions of unscrupulous individuals. It's crucial to remember that Bitcoin, like many other cryptocurrencies, is designed to be secure and virtually unhackable.
The cryptocurrency industry is a dynamic and complex landscape, characterized by rapid growth and significant risks. As the industry continues to evolve, it's essential for individuals to stay informed about these hot topics and understand the potential implications for their investments.
To watch the full session by Gareth Cleverly, just click here. In the session, Gareth covers the above as well as:
- The difference between a crypto trader and a crypto buyer
- Why a crypto exchange can be safe and secure
- The varying functionality of the different kinds of digital asset exchanges
- Explain what can be bought, sold and held on these exchanges
- How software can be used to generate transactional data from exchanges making your life as an accountant easy
The contents of this article are meant as a guide only and are not a substitute for professional advice. The author/s accept no responsibility for any action taken, or refrained from, as a result of the material contained in this document. Specific advice should be obtained before acting or refraining from acting, in connection with the matters dealt with in this article.