Accounting for Cryptocurrency Mining Operations

[Jean-David Beyer]

On 10/26/2017 12:21 AM, Rodney Elliott wrote:
> Hi All.
> 
> 
> If I were to purchase a cryptocurrency (say Bitcoin) with a fiat
> currency recognised by gnucash (say USD), then the procedure to
> record the transaction is clear - create an asset account of the type
> 'stock', associate it with a new security that uses the coin ticker
> (BTC) and the maximum number of significant figures supported by
> gnucash, etc.
> 
> 
> 
> What to do in the case of mining a cryptocurrency is less clear. The
> BTC asset account would need to be credited with the amount of coins
> mined, but then what? How do you balance this transaction, given that
> no fiat currency was involved? The cryptocurrency was effectively
> created out of thin air. I feel like the answer is an equity account
> of some description, but I do not think that it would be appropriate
> to have an equity account of the type 'stock'. Is there a tractable
> solution to this problem?
> 

If you found gold on your property and worked as a gold miner, and took
the gold as payment for your labors, how would you account for that?
Maybe it is just income paid in that alternate currency; gold in the
case of gold mining, BTC in the case of bitcoin. ???


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