Going Crypto— OR NOT
New digital currencies are popping up all over and prices are skyrocketing. Is it time to get in on the rush or is it better to stay away? By Rosalind Stefanac illustration by Blair Kelly
HEN BITCOIN, the very first digital currency, was released in 2009, most investors were skepti- cal. As an intangible tender with no country of origin, it was generally considered part of a techno-fad that would quickly dissipate.
Almost a decade later, not only are there at least 900 additional cryptocurrencies circulating, but their returns are far outpac- ing those of other asset classes such as global real estate or gold. Along with bitcoin, we now have ethereum, monero, dash-
coin, dogecoin, litecoin and zerocash, to name just a few of the most popular. The value of some of these digital currencies is growing exponentially too. Ethereum, for example, rose 3,000% in 2017 alone. With bitcoin, the evolution has been even more spectacular.
In 2009, you could have purchased 5,000 of the coins for $27. In December 2017, the coins were selling at an all-time high of more than $15,000 apiece. According to Bitcoin Canada, more than $40 billion is transferred using these digital tokens in a 24-hour cycle. Michael Gord, founder of MLG Blockchain Con- sulting, a blockchain development and consulting firm based in Toronto, says it’s just the tip of what’s to come for crypto-
currencies and blockchain, the technology that allows the cur- rency to function. “In five years we’re going to see these tokens introduced into the jungles of Thailand,” he says, noting that as the founder of MLG, he already pays his employees living outside of North America in bitcoin. “I’m a big believer in this currency for the future — I’m all in.” CPA Magazine’s tech columnist, Dwayne Bragonier of BAI
Bragonier & Associates, has a similar view. He calls blockchain the “most revolutionary and disruptive technology” to hit the accounting profession since computerized bookkeeping. He believes all conventional monies will be replaced by the digi- tal kind by 2040 and that we’ll see widespread use even with- in the next 15 years. The fact that more and more entrepreneurs, venture capi-
talists and even banking institutions are joining the crypto- currency craze is quite telling. The Bank of Montreal recently joined a collaborative project with IBM Corp. and other banks to build blockchain-based technology to support these trading transactions. Meanwhile, TD Bank and Royal Bank of Canada will each be testing digital identity networks powered by simi- lar technology. The People’s Bank of China is also rumoured to
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