BITCOINS

Lili
Alfonso
Luifer
Luis A

Questions:

1. What is a Bitcoin?
Bitcoin is a digital or virtual currency created in 2009. It is an open source project
that is used as a cryptocurrency that uses peer-to-peer technology to facilitate
instant payments.

2. How does it work?

Each Bitcoin is basically a computer file which is stored in a 'digital wallet' app on a
smartphone or computer. People can send Bitcoins (or part of one) to your digital
wallet, and you can send Bitcoins to other people. Every single transaction is
recorded in a public list called the blockchain.

3. What are the pros and cons of cryptocurrency?

The Bitcoin pros:
 Freedom of payments
 Very low rates.
 Lower risks for merchants.
 Security and control.
 Neutral and transparent.
The Bitcoin cons:

 Degree of acceptance
 Volatility.
 Development in progress.
4. What does bitcoin mean for accounting?
For the Technical Council of Public Accounting they are virtual currencies, but
according to this body, at the moment there is no appropriate asset category to
classify these currencies and it doesn't rule out that the International Financial
Reporting Standards (IFRS) in the future may establish some.

5. How bitcoin could transform accounting?

Blockchain technology applied to tax and accounting management will make certain
accounting practices and even some professional services obsolete.

For example, once transactions are entered into the blockchain, they cannot be
altered. Corrections can be made after the fact, but they are transparent to all
parties, so the data cannot be falsified or manipulated. This makes the audit easier
and more reliable, and reduces the possibility of error.
Consequently, some of the manual tasks involved in the audit may disappear,
although it is unlikely that auditors will be completely replaced.

6. What do accountants need to know about cryptocurrency?

In Accounting if there is an active crypto market, the most appropriate
measurement basis would be fair value and, otherwise, cost less impairment.
In general terms, the recommendation is to create a separate unit of account for the
recognition, measurement and disclosure of transactions made with this type of
virtual assets, which would help meet the main objective of IFRS: provide useful
information for the taking of decisions.
7. How can I create a bitcoin wallet?

Create a shared Bitcoin wallet by following these 5 steps:

1. Download the Bitcoin.com Wallet app for iOS, Android, Windows, Linux or Mac.
2. From the home screen, tap the "+" in the Bitcoin cash wallet menu to create a
new wallet.
3. In the "Add wallet" menu, select "Create shared wallet"
4. Set the 'wallet name', 'your name', 'total number of co-payments' and the
'required number of signatures' necessary to send cash from the shared wallet.
Note: 'Total number of co-payments' is the number of people or devices that will
have access to this wallet. The 'required number of signers' is how many of these
people or devices will have to manually authorize a transaction before they can send
it.
5. Create the wallet and then share the invitation code with the other people you
want to join the wallet. This code can also be scanned or copied and pasted the text
block.