Bitcoin

[Dustin Henning]

-----Original Message-----
From: gnucash-user-bounces+the00dustin=gmx.net at gnucash.org
[mailto:gnucash-user-bounces+the00dustin=gmx.net at gnucash.org] On Behalf Of
Les
Sent: Wednesday, December 19, 2012 20:02
To: stepbystepfarm at mtdata.com
Cc: GnuCash user mailing list
Subject: Re: Bitcoin

On 12/19/2012 04:07 PM, Mike or Penny Novack wrote:
>
>>>>
>>>>     
>>> I think it would be a commodity.
>>>
>>> Michael
>>>   
>> Gold is a commodity, but it is still money and has been for several 
>> thousand years.
>>
>> Les
>>
>>  
>>
> I think you meant that gold had been a currency in many places in the 
> past ("money" is another concept). But the point is that NOW if you 
> are keeping books using gnucash in whatever currency an account in 
> gold would be handled as a commodity. Why would you expect/want a 
> different treatment for "bitcoin" than "gold"?
>
> Michael
>
>
If you look in security editor, you will find xau (gold), silver and other
precious metals listed under currency.  But, this begs the question because
there is no bitcoin anywhere.  As for whether or not gold is money and a
commodity is an economic definition.  The economic definition for money is a
medium of exchange.  By that definition anything can be money if people
agree to the exchange. To prove that gold is money, the Iranians have been
selling oil to Turkey who have been paying Iran in gold.  You can believe
whatever you wish.  As for bitcoin, I don't use it.  But there are a lot of
people who do.  My original question was out of curiosity. 
Les


_______________________________________________


I believe bitcoin would be money more than gold would.  It isn't surprising
that one country would pay another for oil with gold, but on a much smaller
scale, paying with gold is far less feasible than paying with bitcoin.
Given that, and especially given the fact that gold can be used as a
currency in GnuCash, I think it only logical that bitcoin be usable as a
currency.  There are other cryptocurrencies to compete, though, and it would
be tough for developers to keep up with, so IMO, custom currencies is the
way to go.  The custom currency function would need to allow 8 decimal
places instead of 6 for most of the cryptocurrencies I have seen, though.
	Dustin