Shows
From Niche to Necessity: Tax & Accounting for Web3 and Digital AssetsS3E5 - Avalanche in Action: Blockchain’s Real-World Revolution with Afeez AwowoleIn this episode of "From Niche to Necessity," host Taylor Zork sits down with Afeez Awowole, Head of Technical Accounting & Digital Assets at Ava Labs (Avalanche Foundation), to dive deep into blockchain's transformative role in finance, government, and beyond.Whether you're an accountant, finance leader, blockchain enthusiast, or government official, this episode unpacks how Avalanche is reshaping real-world asset management, speeding up traditional processes, and providing secure, scalable solutions for global adoption.You'll learn:How Avalanche’s groundbreaking speed and security attracted FIFA and Bergen County, NJWhat tokenizing $240 billion in real estate deeds me...2025-07-2553 minFrom Niche to Necessity: Tax & Accounting for Web3 and Digital AssetsS3E4 - What Every CFO Should Know About On-Chain PayrollIn this episode of Niche to Necessity, host Taylor Zork sits down with Hugo Finkelstein, co-founder and CEO of Rise, the pioneering hybrid payroll platform built for the future of work.💡 Whether you’re a CFO, founder, or finance leader, this episode breaks down what you really need to know about integrating on-chain payroll, staying compliant, and leveraging crypto and stablecoins to streamline global operations.📌 You’ll learn:- Why hybrid payroll (fiat + crypto) is the future of global teams- How Rise handles compliance at an enterprise level—even as a startup- The imp...2025-04-0236 minFrom Niche to Necessity: Tax & Accounting for Web3 and Digital AssetsS3E3 - Understanding New Crypto Reporting Requirements with Phil GaudianoWelcome to another insightful episode of "From Niche to Necessity: Tax & Accounting for Web3 and Digital Assets." Today, host Taylor Zork, CPA, is joined by Phil Gaudiano, co-founder of Chainwise CPA and Chainwise Crypto Academy. In this episode, Phil dives deep into the upcoming 1099 reporting requirements slated for 2025, stemming from the 2021 infrastructure bill. He discusses the impact these will have on centralized and decentralized crypto actors and how the new form 1099 DA could complicate the process for taxpayers. Phil also sheds light on the challenges associated with wallet-by-wallet reporting and the shift from a universal perspective to individualized reporting...2025-02-2619 min
From Niche to Necessity: Tax & Accounting for Web3 and Digital AssetsS3E2 - Financial Forensics Meets Blockchain with Dorothy HaraminacJoin host Taylor Zork, CPA, as he sits down with Dorothy Haraminac, founder of YBR Consulting and a leading expert in blockchain forensics. In this episode, Dorothy unpacks the complexities of crypto asset tracing, financial forensics in Web3, and presenting blockchain evidence in court.Discover how traditional financial investigations differ from blockchain forensics, the challenges of incomplete data, and common methods for hiding crypto assets. Dorothy also shares expert advice for professionals looking to break into the field.Whether you're a tax professional, forensic accountant, or simply curious about digital asset investigations, this episode...2025-02-2056 min
From Niche to Necessity: Tax & Accounting for Web3 and Digital AssetsS3E1 - Simplifying Tax and Accounting for Crypto Assets with Chandan LodhaWelcome to another insightful episode of "From Niche to Necessity: Tax & Accounting for Web3 and Digital Assets." Today, we're thrilled to host Chandan Lodha, the co-founder of CoinTracker. In this engaging conversation, Chandan shares fascinating insights into CoinTracker's evolution from its humble beginnings as a personal pain point to a pivotal tool supporting over two and a half million crypto users. Together with host Taylor Zork, CPA, they delve into the complexities of crypto tax reporting, the challenges posed by the rapid pace of industry change, and the innovative solutions CoinTracker is rolling out in response, including new features...2025-02-0557 min
From Niche to Necessity: Tax & Accounting for Web3 and Digital AssetsS2E6 - Building Costa Rica’s Bitcoin Economy: A Conversation with Pura Vida BitcoinIn this episode of Niche to Necessity, we dive deep into the exciting world of Bitcoin adoption in Costa Rica. Join host Taylor Zork as he interviews Joshua Pooley, the head of business development at Pura Vida Bitcoin, a company working to revolutionize the financial infrastructure of Costa Rica through Bitcoin. From navigating the challenges of local banking systems to creating a seamless Bitcoin economy, Josh shares insights on how his team is fostering financial freedom for locals, tourists, and businesses alike. Whether you're curious about Bitcoin's real-world applications or passionate about crypto, this conversation offers a fascinating look...2024-10-0941 min
From Niche to Necessity: Tax & Accounting for Web3 and Digital AssetsS2E5 - Mastering Web3 Finance: A Conversation with Acctual’s Atikh Bana and Issa HassanIn this episode of From Niche to Necessity, host Taylor Zork, CPA, sits down with Acctual co-founders Atikh Bana and Issa Hassan to discuss the future of finance in the Web3 space.Acctual is revolutionizing accounts payable (AP) and accounts receivable (AR) management by offering seamless crypto payment solutions for businesses navigating the complexities of digital assets. Whether you're deep in Web3 or just starting to explore it, you’ll gain valuable insights into how stablecoins, decentralized payments, and tools like Acctual are transforming traditional financial operations.Learn how companies are using Web3 technologies to st...2024-09-1728 min
From Niche to Necessity: Tax & Accounting for Web3 and Digital AssetsS2E4 - Robbie Heeger Explores the Future of Crypto Philanthropy with EndaomentThe latest episode of "From Niche to Necessity: Tax & Accounting for Web3 and Digital Assets" features an incredible conversation with Robbie Heeger, President and CEO of Endaoment. For anyone interested in how blockchain technology can revolutionize nonprofit and philanthropic efforts, this episode is an absolute must-listen.Here are three key takeaways from our conversation with Robbie:- Innovative Philanthropy: Robbie explains how Endaoment is transforming the way we give to charity through blockchain technology, making it transparent, accountable, and efficient. Imagine a world where your charitable donations are publicly trackable and verifiable!...2024-07-1650 min
From Niche to Necessity: Tax & Accounting for Web3 and Digital AssetsS2E3 - Enterprise Digital Assets: A Conversation with Bitwave's Patrick WhiteJoin us on "From Niche to Necessity: Tax & Accounting for Web3 and Digital Assets," for a deep dive into the world of tax and accounting for Web3 as our host Taylor Zork, CPA speaks with our esteemed guest, Patrick White, Co-Founder and CEO of Bitwave.Explore the complexities of cryptocurrency accounting, the challenges of large-scale transaction data, and the latest solutions from Bitwave for enterprise digital asset management. Gain insights into how Bitwave is revolutionizing the financial space, the role of programmable payments in supply chains, and how enterprises can navigate the digital asset industry with ease.2024-04-0351 min
From Niche to Necessity: Tax & Accounting for Web3 and Digital AssetsS2E2 - Vijay Pravin: AI-Enhanced NFT data with bitsCrunchIn this episode of "From Niche to Necessity: Tax & Accounting for Web3 and Digital Assets," host Taylor Zork, CPA, sits down with special guest Vijay Pravin, the founder and CEO of bitsCrunch.Vijay shares his journey into the crypto space and the creation of bitsCrunch, an AI tool for on-chain analytics, specifically for NFTs and ERC-20 tokens. They discuss the role of AI in crypto analytics, the impact of blockchain data on crypto accounting and valuation, and the future of bitsCrunch in the evolving crypto space. Tune in as they discuss how they're using AI...2024-03-2722 min
From Niche to Necessity: Tax & Accounting for Web3 and Digital AssetsS2E1 - Better Blockchain Data: A Conversation with Noves CEO Ben RoyIn this episode of "From Niche to Necessity: Tax & Accounting for Web3 and Digital Assets," host Taylor Zork, CPA, is joined by Ben Roy, CEO and founder of Noves. They discuss how Noves is simplifying blockchain data and making it more accessible. Ben shares his journey in the crypto space and explains the challenges of working with on-chain data. They delve into how on-chain tools are being designed and adopted, and the potential trends in the upcoming bull market. They also explore the challenges faced by crypto CFOs and the roadmap for Noves, including new functionalities for their tools...2024-03-1323 min
From Niche to Necessity: Tax & Accounting for Web3 and Digital AssetsS1E15 - Nik Fahrer | FORVISIn this dynamic episode of "From Niche to Necessity: Tax & Accounting for Web3 and Digital Assets," host Taylor Zork, CPA, takes listeners on an enlightening journey into the complex realm of crypto accounting and digital asset management. Joining Taylor is Nik ‘Crypto Nik’ Fahrer, a leading authority in digital assets at Forvis.Nik unravels the intricate challenges that accountants face in this fast-paced sector, from the haze of regulatory uncertainties to the distinctive hurdles of DeFi and NFTs. His extensive experience offers a wealth of insights, making this episode a must-listen for anyone navigating the...2024-01-1954 min
From Niche to Necessity: Tax & Accounting for Web3 and Digital AssetsS1E14 - Amber Welch | Finsuite Consulting GroupIn this insightful episode, host Taylor Zork, CPA, is joined by the ever-inspiring Amber Welch, co-founder of Finsuite Consulting and trailblazer in the Web3 community. Amber unearths a treasure trove of knowledge, combining her expertise in computer science and accounting to illuminate the transformation of the finance sector through Web3 and digital assets.As we navigate the intricate pathways toward integrating blockchain technology into mainstream finance and accounting, Amber's pioneering work at Finsuite and her empowering podcast, HackHERZ, are at the forefront of shaping an inclusive and innovative future.Tune in to absorb Amber's invaluable...2024-01-0955 min
Accounting For Crypto AssetsNon-Taxable Transactions: Soft ForksSoft forks are protocol changes to a blockchain (ETH to ETH 2.0 when The Merge occurs, for example) that remain compatible with previous versions and therefore do not create a taxable event. No new cryptocurrency is created in a soft fork. For now, just remember soft forks are not taxable, and we dive into the topic in much greater detail in the hard forks section of this book. Hard forks may or may not be taxable depending upon whether there is an accession to wealth. Receiving new cryptocurrency is an accession to wealth and is taxable; however, a hard fork...2023-12-2002 minAccounting For Crypto AssetsNon-Taxable Transactions: Inheriting CryptoWhen you inherit crypto assets, as defined by the IRS, you inherit property. The cost basis of the property is the FMV (average of the high and low for the day) at the time of death or six months later if the value of the assets has dropped and the alternate valuation date is elected. This election is only made when estate tax is due in order to lower the estate tax, which results in a lower cost basis and potentially higher capital gains tax upon disposition.At the federal level, if estate tax applies (the 2022 estate...2023-12-1801 minAccounting For Crypto AssetsNon-Taxable Transactions: Receiving Crypto as a GiftThe IRS’s FAQ sums up the rules for receiving crypto as a gift:“If you receive virtual currency as a bona fide gift, you will not recognize income until you sell, exchange, or otherwise dispose of that virtual currency. See Publication 559. Your basis in virtual currency received as a bona fide gift differs depending on whether you will have a gain or a loss when you sell or dispose of it. For purposes of determining whether you have a gain, your basis is equal to the donor’s basis, plus any gift tax the donor paid on the gi...2023-12-1302 minAccounting For Crypto AssetsNon-Taxable Transactions: Gifting and DonatingGifting crypto assets to individuals generally will not have any tax implications unless you are super-rich; the inflation-adjusted lifetime exemption for federal gift tax (aka “death tax”) is $12.06 million per individual and $24.12 million per married couple in 2022. If you are receiving this much crypto as a gift, you should speak with an estate planning attorney. For the rest of us, gifts of more than the 2022 annual exclusion amount of $16,000 per individual and $32,000 per married couple create a reporting requirement with no financial impact. IRS Form 709 is used to disclose excess beyond the annual exclusion to the IRS, which is appl...2023-12-1105 minAccounting For Crypto AssetsNon-Taxable Transactions: Borrowing CryptoBorrowing crypto assets is no different than borrowing from a traditional lender. The IRS does not consider a loan to be taxable income because it must be repaid. On the other hand, if a crypto loan with an initial USD value of over $600 is forgiven, you should receive a 1099-C for cancellation of debt (COD) income, which is taxable. If the loan provider requires an exchange of crypto for you to get the loan — for example, swapping ETH for cETH to get a loan in Compound (referring to https://compound.finance/) — a conservative approach would be to report the gain...2023-12-0601 minAccounting For Crypto AssetsNon-Taxable Transactions: Crypto TransfersTransfers among commonly owned accounts (wallets/ addresses/ exchanges) are non-taxable events. For example, you may move your MATIC from Crypto.com to Binance Earn to get a better yield for staking it. A transfer such as this could trigger a reporting requirement for an exchange or other platform that results in the issuance of an “information return.” An information return, such as a 1099-K for example, is sent to the IRS and to you, but it would not cause a taxable event if it arose solely as the result of a transfer. Note that in the example of moving MATI...2023-12-0402 minAccounting For Crypto AssetsNon-Taxable Transactions: Buying Crypto with FiatWhen you buy cryptocurrencies with fiat dollars, you do not have a taxable transaction. The same can be said for buying an NFT with fiat money. Using other crypto or stablecoins to buy crypto will likely have tax consequences, as we discuss in this and future videos.2023-11-2902 minAccounting For Crypto AssetsNon-Taxable Transactions: IntroductionMany actions you’ll take with crypto are not taxable. Here’s a non-exhaustive list, and we’ll cover each in more detail in this course:– Buying crypto or NFTs with fiat currency– Transfers– Borrowing crypto– Gifting and donating crypto assets– Receiving crypto as a gift– Inheriting crypto– Soft forksIt is not always apparent whether a transaction involving crypto assets causes a taxable event or not. The IRS has shed some light on what does not facilitate a taxable transaction with respect to virtual currency. We can take this a step further and g...2023-11-2904 min
From Niche to Necessity: Tax & Accounting for Web3 and Digital AssetsS1E13 - Lourdes C. Miranda | FinTech Advisory GroupIn this captivating episode, we dive deep into the intricate world of crypto compliance and investigations. Our special guest, Lourdes C. Miranda, CAMS, CCFI, CEIC, CFE, CRC, CTCE, FIS, PI, Chief Compliance Officer, and Chief Consultant at Fintech Advisory Group, shares her extensive experience in the crypto realm, dating back to 2017.🌐 Key Highlights of the Episode:Evolving Landscape of Cryptocurrency: Discover the significance of staying informed and compliant in the ever-changing global cryptocurrency landscape.Insider Knowledge & Tech Tools: Lourdes discusses the essential tech tools and her role in ensuring compliance across multiple platforms.Global Jurisdiction & Cha...2023-11-2856 min
From Niche to Necessity: Tax & Accounting for Web3 and Digital AssetsS1E12 - Rustin & Daniel | CoastOn this episode of "From Niche to Necessity: Tax & Accounting for Web3 and Digital Assets" we feature Rustin Cavel and Daniel Durning the founders of COAST, a beneficiary service that uses smart contracts to help pass on your digital assets to loved ones.Here are 3 key takeaways from the discussion:1 Coast aims to bridge the gap between traditional finance and decentralized finance by offering beneficiary services for digital assets. Just like in traditional finance, where you can name beneficiaries for your bank accounts or 401(k), Coast allows you to designate beneficiaries for your digital assets held...2023-10-0418 min
From Niche to Necessity: Tax & Accounting for Web3 and Digital AssetsS1E11 - William Grant | Integral🎙️ New Podcast Episode Alert! 🎙️In this episode of "Niche to Necessity," join Taylor Zork, CPA, and special guest William Grant as they explore the world of crypto accounting and finance. 📈💰🎧 In this episode, we take a deep dive into the challenges and opportunities in the Web3 space. We discussed how Integral is empowering Web3 organizations in crypto accounting, revenue recognition, NFT collection management, capital gain loss calculations, audit, compliance reports, and more! 📈🔑 Key Takeaways from the episode:1️⃣ The importance of solid financial back offices and reporting in the crypto industry.2️⃣ The fundamental challenges faced by C...2023-09-0628 min
From Niche to Necessity: Tax & Accounting for Web3 and Digital AssetsS1E10 - Anton Golub | Pazar🎙️ New Podcast Episode Alert! 🎙️In this episode of "Niche to Necessity," join Taylor Zork, CPA, and special guest Anton Golub as they explore the world of crypto accounting and finance. 📈💰Discussion Highlights:- Anton's journey from traditional finance to the blockchain industry. 🚀- The significance of liquidity, market making, and market microstructure in the crypto landscape. 💧💹- How these factors impact accounting, tax compliance, and financial reporting. 📊💼- The evolving regulatory landscape for crypto businesses and its influence on accounting and tax considerations. 📚🧾- The need for clear regulations tailored to the crypto industry to ensure oper...2023-06-1930 min
From Niche to Necessity: Tax & Accounting for Web3 and Digital AssetsS1E9 - Sukesh Tedla | Kryptoskatt🎙️ New Podcast Episode Alert! 🎙️Join us in the latest episode of "From Niche to Necessity: Tax & Accounting for Web3 and Digital Assets," presented by CryptoCFOs. This time, Taylor Zork, CPA/MBA has a fascinating conversation with Sukesh Tedla, the CEO, and Founder of Kryptoskatt.In this informative discussion, Tedla unravels the intricacies of DeFi, NFT market, and crypto taxation, sharing crucial advice to help you understand and manage digital assets better.Key takeaways from the episode:🔹 Navigating the Challenges in DeFi and NFT Market: Understand the complexities of a crowded market, and learn how to...2023-06-0519 min
From Niche to Necessity: Tax & Accounting for Web3 and Digital AssetsS1E8 - Antoine Scalia | Cryptio🎙️ New Podcast Episode Alert! 🎙️We're excited to share the latest episode of "From Niche to Necessity: Tax & Accounting for Web3 and Digital Assets," presented by CryptoCFOs where we dive into the complex world of crypto accounting.In this episode, Taylor Zork, CPA/MBA is joined by Antoine Scalia, founder, and CEO of Cryptio, who shares valuable insights on navigating the challenges of accounting in the digital assets industry.Key takeaways from the episode:🔹 Education is Key: Gain hands-on experience and deepen your understanding...2023-05-0128 min
From Niche to Necessity: Tax & Accounting for Web3 and Digital AssetsS1E7 - Joe David | Nephos Group / Myna🚀 Welcome to the Latest Episode of From Niche to Necessity: Tax & Accounting for Web3 and Digital Assets! 🚀🎙️ We're thrilled to have a very special guest joining us from the United Kingdom, the incredible Joe David! Joe is the founder and CEO of both Nephos Group and Myna, companies that are making waves in the tech startup and cryptocurrency space by providing top-notch accounting and financial services. 🌊💼🔥 In this captivating conversation, Joe shares his extensive knowledge about the world of cryptocurrency and accounting. We'll cover a range of hot topics, including the critical importance of research in the crypto space...2023-04-2429 min
From Niche to Necessity: Tax & Accounting for Web3 and Digital AssetsS1E6 - Blake Oliver, CPA | Earmark🚀 Welcome to a Game-Changing Episode of From Niche to Necessity: Tax & Accounting for Web3 and Digital Assets! 🚀🎙️ Join us as we sit down with the trailblazing Blake Oliver, CPA, who's revolutionizing the world of accounting and Continuing Professional Education (CPE) with his innovative startup, Earmark! 💡🔥 In this electrifying conversation, our host Taylor Zork, CPA and Blake dive into the art of repackaging accounting for MAXIMUM value. Discover how accounting pros can zero in on the numbers that truly matter to people and make a lasting impact! 🎧 But wait, there's more! Earmark is transforming the way CPAs and prof...2023-04-1713 min
From Niche to Necessity: Tax & Accounting for Web3 and Digital AssetsS1E5 - Harry Shurek | The Crypto AccountantOn this episode of From Niche to Necessity: Tax & Accounting for Web3 and Digital Assets, Taylor Zork invites guest Harry Shurek, owner of The Crypto Accountant, to share how he entered the crypto industry. They discuss the shortage of accountants with specialized knowledge in both cannabis and crypto, as these industries continue to grow. Harry also introduces his accounting firm, which has grown to service high-profile clients with 25 staff members, over half of whom are CPAs. They also discuss the challenges of managing investments in the crypto space and the need for specialized knowledge in the industry. In addition...2023-04-1131 min
From Niche to Necessity: Tax & Accounting for Web3 and Digital AssetsS1E4 - Jason Meyers | AuditchainIn this episode, Taylor interviews Jason Meyers, the lead architect for Auditchain, a company pioneering "proof of state" to increase transparency and efficiency in financial reporting for public companies. Jason explains how the Auditchain Protocol differs from other blockchain-based platforms in the finance industry and how it enables real-time financial reporting and auditing for businesses and organizations. He also discusses the specific benefits that the Auditchain Protocol offers to accounting and tax professionals, including increased efficiency and effectiveness in their work. Additionally, Jason shares his insights on the impact of the Auditchain Protocol on the traditional finance and DeFi...2023-03-3131 min
From Niche to Necessity: Tax & Accounting for Web3 and Digital AssetsS1E4 - Jason Meyers | AuditchainIn this episode, Taylor interviews Jason Meyers, the lead architect for Auditchain, a company pioneering "proof of state" to increase transparency and efficiency in financial reporting for public companies. Jason explains how the Auditchain Protocol differs from other blockchain-based platforms in the finance industry and how it enables real-time financial reporting and auditing for businesses and organizations. He also discusses the specific benefits that the Auditchain Protocol offers to accounting and tax professionals, including increased efficiency and effectiveness in their work. Additionally, Jason shares his insights on the impact of the Auditchain Protocol on the traditional finance and DeFi...2023-03-2734 min
From Niche to Necessity: Tax & Accounting for Web3 and Digital AssetsS1E3 - Dr. Sean Stein Smith DBA, CPAIn this episode, Taylor interviews Dr. Sean Stein Smith, an assistant professor at Lehman University and a renowned accounting thought leader. The conversation focuses on the challenges of communicating complex concepts related to the crypto industry to non-specialist audiences, and the key takeaways that Dr. Stein Smith strives to impart in his lectures on crypto accounting.Dr. Stein Smith also shares his insights on the biggest challenges facing the accounting profession in relation to the rapidly evolving crypto industry, and how these challenges can be addressed in the coming years. He also discusses the most important considerations...2023-03-0721 min
From Niche to Necessity: Tax & Accounting for Web3 and Digital AssetsS1E2 - Sharon Yip CPA | Polygon Advisory GroupIn this second episode of "From Niche to Necessity: Tax & Accounting for Web3 and Digital Assets", Taylor Zork CPA sits down with Sharon Yip CPA, a crypto tax expert and co-founder of Polygon Advisory Group, to explore the unique challenges of accounting for crypto assets for tax purposes.Sharon draws upon her experience as the owner of a tax practice that specializes in the crypto industry, shedding light on common mistakes made by individuals and businesses and highlighting the importance of hiring qualified professionals in the crypto industry.Sharon also provides insights into how...2023-02-2727 min
From Niche to Necessity: Tax & Accounting for Web3 and Digital AssetsS1E1 - Gil Hildebrand | Gilded FinanceIn the first episode of "From Niche to Necessity: Tax & Accounting for Web3 and Digital Assets," host Taylor Zork sits down with Gil Hildebrand of Gilded (Gilded.Finance). Taylor and Gil delve into the key considerations CFOs should keep in mind when tracking crypto financials. They also discuss Wallet Hygenie, the Gilded Accounting Partner Program, and so much more. Don't miss this enlightening conversation on the cutting edge of tax and accounting for Web3 and digital assets!2023-02-0923 minAccounting For Crypto AssetsFundamentals: Triple Entry AccountingUnderstanding Triple Entry Accounting2023-01-1202 minAccounting For Crypto AssetsFundamentals: Continuous Audits & Process Control NFTsUnderstanding Continuous Audits & Process Control NFTs2023-01-1204 minAccounting For Crypto AssetsFundamentals: Capital Gains & Ordinary IncomeMost income is taxed in three different ways, and taxpayers can make decisions that affect that classification. Understanding the tax classification of earned and asset-based income is essential to minimize taxes. Income is classified as:Long-term capital gains (capital assets held more than a year)Short-term capital gains (capital assets held one year or less)Ordinary income (income earned by wages, salaries, tips, commissions, interest, income earned from a business or through self-employment, and non-qualified dividends)Long-term capital gains (LTCGs) usually have the most favorable tax rates; tax brackets in 2022 for...2023-01-1203 minAccounting For Crypto AssetsFundamentals: Cost Basis and Holding PeriodCost basis and holding period are the two inputs that determine the tax impact of a capital asset transaction, including crypto assets.Cost basis is an important concept as it determines your gain or loss when you arrive at a taxable crypto transaction. The automated tax software currently available for crypto accountants and investors is lacking in its ability to track basis across platforms. The software cannot know whether it has complete information or not, and sometimes comes to erroneous conclusions about basis in the face of DeFi transactions or users who interact with multiple exchanges or...2023-01-1211 minAccounting For Crypto AssetsFundamentals: Utility vs. Governance TokensWhat gives a cryptocurrency value?Market capitalization is the price of a crypto asset multiplied by the circulating supply; the calculation offers a sense of the overall growth potential of a project. As an example, for the popular meme coin Shiba Inu (SHIB) to grow from a price of 0.00002447 to $1.00, it would require a 40,866x (4,086,600%) increase in price. This move would take the market cap from approximately 13,500,000,000 to 551,691,000,000,000 USD (yes, $551 trillion, which is more than the total value of all of the world’s real estate). Excluding discussions of burn mechanisms and prior performance (SHIB is still up...2023-01-1207 minAccounting For Crypto AssetsFundamentals: Coins vs. TokensCoins and tokens form two major types of cryptocurrencies.Coins are cryptocurrencies with their own native blockchain networks (Ether/ETH, Bitcoin/BTC, and Litecoin/LTC). These coins are the result of years of coding and building a robust and secure blockchain network that requires decentralized computing power to secure. As a result, coins are more difficult to create because they require entire networks to support their use and value proposition. Coins are rewarded to those who supply computing power for processing transactions and are generally used as the fuel for the transactions that are processed on that...2022-12-2205 minAccounting For Crypto AssetsFundamentals: Enterprise Custody SolutionsWhile seemingly counterintuitive to the ethos of blockchain and cryptocurrencies, enterprise custody solutions can serve a purpose for high-net-worth (HNW) individuals who prefer a third party to hold and maintain custody of their crypto assets.Companies like Ledger, Kraken, and Coinbase offer custody services for HNW and Ultra-HNW individuals, estates, and companies. These solutions are generally cost-prohibitive for the average investor.For many public figures within the crypto space, their mere participation in the industry can put a target on their back, as a would-be thief may assume that the individual has access to the...2022-12-2203 minAccounting For Crypto AssetsFundamentals: Multisig WalletsMultisig wallets require multiple signatures (multiple wallets approving the transaction) to sign or confirm transactions and can be secured with either a hot or cold storage wallet. This method provides for much greater security as there is no one single point of failure. A multisig wallet secured via cold storage is the gold standard for security with crypto assets, but this protection comes at the expense of convenience. This type of storage should be employed for large asset balances that are kept for longer time frames.2022-12-2205 minAccounting For Crypto AssetsFundamentals: Cold Storage WalletsA cold storage wallet is used for storing crypto assets where the private keys and access to the wallet are offline thereby protecting the funds from unauthorized access, hacks, and other vulnerabilities. There are physical devices, like Ledger’s Nano S or Trezor’s One, or simply something analog like a sheet or paper containing the private keys to the wallet. With the physical devices, the unit is connected to a computer to authorize transactions and generally has a passcode to gain access to the device itself. The security advantage of storing funds on a cold wallet is th...2022-12-2206 minAccounting For Crypto AssetsFundamentals: Exchange & Hot WalletsExchange wallets are funds held on centralized exchanges (CEXs). If a taxpayer purchases crypto assets on a CEX like Coinbase or Kraken, then the assets are in the exchange’s wallet. When investors leave funds on exchanges, they are relying on a third party to secure their assets. Exchanges have been hacked and bad actors inside an exchange have stolen and mismanaged funds; in the strange case of the Quadriga Ex exchange founder who suddenly died under suspicious circumstances, the private keys to $190 million of users’ funds vanished.Relying on exchanges to secure funds is only for acti...2022-12-2205 minAccounting For Crypto AssetsFundamentals: Consensus Mechanisms2022-12-2203 minAccounting For Crypto AssetsFundamentals: Securing Crypto AssetsNow that we have a better grasp of how wallets function for crypto assets, we need to understand the inextricable link between decentralization, self-custody, and security. In the world of blockchain and cryptocurrency, no bank holds and secures your funds. You are the bank. As a result, you rely on varied levels of security based on the context of the usage of funds.A real-world example of this concept is the difference between a wallet you carry in your pocket and a bank vault. Obviously, the money kept in a wallet is less secure than money stored...2022-12-2203 minAccounting For Crypto AssetsFundamentals: WalletsIn the world of cryptocurrencies, wallets act as “bank accounts.” Cryptocurrency wallets consist of a private key and a public key. The private key secures access to your wallet, while the public key is the address that allows people and companies to send funds to your wallet.One of the major trade-offs with cryptocurrency wallets vs. traditional bank accounts is that since you are responsible for custody and security of your funds, no one can help you recover funds if you lose your account information. The private key secures access to your wallet; if this or the reco...2022-12-2204 minAccounting For Crypto AssetsFundamentals: Currency or Property?UPDATE: the CFTC announced on December 13, 2022 that some assets, including BTC, ETH, and USDT are commodities under US Law. The IRS has generally classified cryptocurrency as property and applies tax regulations in a similar fashion to stocks or real estate. For this reason, we will not discuss the tax treatment of fiat currency transactions here. Crypto assets can be held as capital assets or received as W-2 wages, self-employment income, or royalty income. Additionally, they may also be treated as inventory by traders and brokers in certain instances.As you can see, this asset class is extremely v...2022-12-2204 minAccounting For Crypto AssetsFundamentals: Introduction to Accounting for Crypto AssetsWelcome to Fundamentals of Accounting for Crypto Assets. This course is presented by Taylor Zork, CPA, MBA of CryptoCFOs.com To learn more and to become a member of our growing community visit www.CryptoCFOs.com2022-12-2206 min