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Question: Is your accounting denominated in bitcoin, or in your local/other currency?  (Voting closed: October 29, 2012, 12:39:15 AM)
Yes, for my business, and maybe myself - 1 (11.1%)
Yes, for my personal finances, but not for my business - 1 (11.1%)
No, none of my records are denominated in bitcoin - 4 (44.4%)
I don't balance my books - 3 (33.3%)
Total Voters: 9

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Author Topic: Economic Calculation in terms of Bitcoin  (Read 1016 times)
malditonuke
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September 29, 2012, 12:39:15 AM
Last edit: September 29, 2012, 12:43:28 AM by hazek
 #1

If you use bitcoin, do you still convert back to your local currency when deciding whether a price is high or low, or whether you are profitable or not?
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Stephen Gornick
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September 29, 2012, 01:05:07 AM
 #2

If you use bitcoin, do you still convert back to your local currency when deciding whether a price is high or low, or whether you are profitable or not?

For which set of books?

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malditonuke
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September 29, 2012, 01:24:45 AM
 #3

For accounting purposes.  I'll adjust the poll.

If you use bitcoin, do you still convert back to your local currency when deciding whether a price is high or low, or whether you are profitable or not?

For which set of books?

malditonuke
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September 29, 2012, 01:33:47 AM
 #4

Examples:

1) You are doing your budget.  You list all your income and all your expenses.
    Do you list your income and expenses in bitcoin or in dollars/etc?

2) If you run a bitcoin business, do your records still list all your assets, sales, liabilities, etc. in dollars, or in bitcoin?


This is a poll of how many people who use bitcoin also use it for economic calculation.
Stephen Gornick
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September 29, 2012, 05:53:36 AM
 #5

2) If you run a bitcoin business, do your records still list all your assets, sales, liabilities, etc. in dollars, or in bitcoin?

Of the businesses listed on GLBSE that actually report financials, nearly all report in terms of BTCs.

So it probably will depend on what currency the business' debt or dividends will be paid in.   If the business owes BTCs, that is who will be reading the financials and thus they'll want BTCs.   If the business has BTCs investment and pays dividends in BTCs, then those investors will be the ones reading the financials and thus they'll want to see BTCs for earnings and dividends.

Now for tax purposes, most likely every revenue and expense denominated in BTCs will need to be recorded in in its fiat equivalent at the time.

So there will be two sets of books, one used for reporting taxes and one for a different audience.

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malditonuke
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September 29, 2012, 09:59:43 PM
 #6


Of the businesses listed on GLBSE that actually report financials, nearly all report in terms of BTCs.

So it probably will depend on what currency the business' debt or dividends will be paid in.   If the business owes BTCs, that is who will be reading the financials and thus they'll want BTCs.   If the business has BTCs investment and pays dividends in BTCs, then those investors will be the ones reading the financials and thus they'll want to see BTCs for earnings and dividends.

Now for tax purposes, most likely every revenue and expense denominated in BTCs will need to be recorded in in its fiat equivalent at the time.

So there will be two sets of books, one used for reporting taxes and one for a different audience.


Do you know where one can get a count of those those that report in BTCs?
Stephen Gornick
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September 30, 2012, 06:58:41 AM
 #7

Do you know where one can get a count of those those that report in BTCs?

I'm actually hard pressed to think of a single one that doesn't.

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October 04, 2012, 06:38:53 AM
 #8

Now for tax purposes, most likely every revenue and expense denominated in BTCs will need to be recorded in in its fiat equivalent at the time.

Not necessarily, as it would depend on how aggressive one is on the approach used. Four approaches are discussed in A Lawyer's Take On Bitcoin And Taxes.

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