Topic: Support CryptoCurrency as a Asset/Currency Account

One aspect of my business is to perform cryptocurrency mining (Proof Of Work) generating income as an asset.

How could we manage this type of ledger?

Generally Crypto is considered an Asset and POW coins more so since they can not be minted (created) out of thin air.

My first thought is they are very much like an Inventory Item (Physical Asset) that has an account (GL?) tracking the realized value.

For example if I earn 20 coins while the value (price) is $0.50 the value/income if $10.00
If I sell 5 coins at $1.50 that would obviously be an additional $5 of income and I think typically the income would be calculated on the oldest unsold coins, First In, First Out

So at this point we have $15 of income and a current asset value of (20-5)*1.50 = $22.50 with Unrealized gains of $15.00

Are my thoughts on this reasonably accurate?

I think these point are common to all localities, but the calculation of Long/Short Term Gains would be left to tax calculations

I am not looking to pay someone to do this, but could use some help.

I do not believe such a fundamental feature qualifies as an add-on that is sold.

So I am asking for anyone who has the skills to do it contribute their time which is the whole point of open source.

Supporting Crypto will help keep FA relevant and I do not think these changes will be overly dramatic to implement.

Anyone interested in working with me?
--
Tom

PS
I have been using FA for over 15 years and have submitted every modification I needed for my shop as either a patch or extension.

For example:
Bank Fees on customer payments
osCommerce customer/order import extension

I am currently working on a WooCommerce order import extension which I will make freely available in the core FA repo

My son and I are also deploying FA as a turnkey application on Flux Web services (runonflux.io) which is a distributed compute network on a blockchain

Re: Support CryptoCurrency as a Asset/Currency Account

It dawned upon me that what I referred to as "current asset value" was actually Cost Basis.
I also think that both the Cost Basis, Unrealized Gains and Profit are all Tax/Reporting issues.

So I think I need to better understand how item cost is calculated and used in inventory.

More later
Tom

Re: Support CryptoCurrency as a Asset/Currency Account

Hey Tom, I think your approach is solid. Treating mined crypto like inventory and using FIFO for gains makes sense. Keeping a GL for each transaction should help with tracking. Adding crypto support to FA is a great idea. Good luck with it!