Blazing the crypto trail
Candy Davis describes the exciting future for CPAs in the world of cryptocurrency and other digital assets
“‘The future is now’ represents the undeniable fact that we are living in unprecedented times, technology-wise,” says Candy Davis CPA, CGA, Owner of Davis Accounting & Tax.
Though the phrase may seem paradoxical at first glance, Candy stands by it in the context of cryptocurrency and related technologies. “It is also a tongue-in-cheek way to show that these technologies are no longer new,” Candy continues. “While various cryptocurrencies and digital assets are constantly being developed and released, cryptocurrency itself has been around for some time now. It is the mainstream public that has taken a while to catch up.”
Generally, cryptocurrency is defined as a decentralized digital form of payment, meaning it does not rely on banks and a central authority to regulate its use. Instead, all transactions are processed and verified through a blockchain a cryptographic digital ledger.
Candy believes this definition is incomplete. “While cryptocurrency was intended to be a method of payment, a vast majority of businesses and individuals use it as a means of investment,” says Candy. “Due to its increase in value over the last 15 years and its wild fluctuations, it has become an attractive option for day traders and those with a focus on high-risk investments with potentially high returns.”
Candy has been interested in cryptocurrency since its inception. In 2010, she learned about Bitcoin from a friend and started mining it. Back then, Bitcoin was worth pennies. “We dreamed of a day when it might hit $100!” she says.
At that same time, Candy got involved with a local Bitcoin group, where they discussed the potential uses of cryptocurrency, its trajectory, and a game plan for educating the public and making it more accessible to the average person. Some of her friends went on to be very active in the industry, setting up the first Bitcoin ATMs and guiding local businesses through accepting Bitcoin as a payment method.
Since then, cryptocurrency has grown in popularity, and Candy believes there is a desperate need for professional guidance in this area. “The best-case scenario is to have CPAs who are familiar with cryptocurrency on a personal level,” she says. “That deep understanding of the intricacies and complexities of digital assets is almost a pre requisite for working in this field. A CPA who specializes in tax and has a background in cryptocurrency is the most ideal candidate.”
As a tax professional who serves clients with crypto portfolios, Candy finds herself constantly flooded with new information and challenges. Because this area is constantly changing, she believes those who wish to succeed in it must be very curious and com mitted to professional development.
To students aspiring to become CPAs, Candy says, “Whether your educational path and interest are in financial accounting, tax, or audit, you have a special place in the world of cryptocurrency. CPAs are, and will continue to be, an integral part of this industry and will play a role in shaping its future.”