Quote:
Originally Posted by signupdamnit
I'm skeptical that this is required if you are converting it say every 30 days. It reminds me of a story I heard from a friend many years ago. He used to let his minor son help out with his business from time to time. Not wanting to do things incorrectly he went to great measures to keep track of his son's hours, earnings and to keep on top of all the regulations to the point where every little thing was documented. To his surprise he received a letter from the IRS basically telling him "don't waste our time and we won't waste yours".
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I didn't read your post and inadvertently echoed it. Stocks have an intrinsic value, in that they represent ownership of a company. Bitcoins are more like options, they have no accepted strike since they are, like options, and unlike stocks, infinite.
I believe they become value when they are converted and only then. GAAP says that cash is "in hand or in the bank" and bitcoins are neither.
They are not a foreign currency since this implies FFF by a foreign state. They have value only in that they are valued, so that if you hold them, you may have to account for them on book at spot, but only by quarter.