[GNC] Paying expenses with cryptocurrency

[John Ralls]

> On Aug 25, 2021, at 10:29 PM, Peter West <pbw at pbw.id.au> wrote:
> 
> The recommended mode of dealing with crypto seems to be to record your crypto as a stock, and handle fluctuation in prices as you would for a stock. When you are investing crypto that makes sense. But what if you are using crypto for purchases? That is, if you are using cryptocurrency for the originally intended purpose?
> 
> Any ideas on how to record this?

Aside from the way GnuCash presents assets in registers the only difference between currencies and non-currency commodities is that you can't have Equity or Payable/Receivable accounts denominated in non-currency commodities. We've been told by a licensed accountant that one shouldn't have those accounts in anything other than the book currency anyway.

So the answer is that that's how you account for transactions in all currencies, crypto or national, other than the book currency: You price them back to the book currency on the day of the transaction and record any resulting trading gains or losses. Do it any other way and you'll make yourself crazy trying to get your book to balance.

Regards,
John Ralls