Bitcoin

[Les]

On 12/19/2012 07:26 PM, Dustin Henning wrote:
> -----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
>
I agree.  At least 8 digits is absolutely necessary.  As for smaller
exchanges, silver has been the historical choice.  The problem with
bitcoin, is it has been very erratic from a high of near 32 to the $ to
a low of around 2.  It is now back to around 13.5.  Silver is around
32.00 and gold around 1665.
I believe bitcoin is going through a period of acceptance and will take
some time to shake out the true value, if there is one.  Commodities
have traditionally taken several years to be officially recognized as a
money.  Bitcoin is not there yet, but it has come a long way. 
Les