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Try to explain your accounting exclusively in Bitcoin over a period of time to any real life businessman and you will be ridiculed for life ...
Try to explain your accounting exclusively in Bitcoin over a period of time to any real life businessman and you will be ridiculed for life ...
How about this:
If I give you 1 BTC exactly a year ago, I get substantially fewer dollars than if I kept that 1 BTC in a paper wallet? Is that clear enough?
So if I gave you back more dollars, would you have earned money?
If giving you my coin got me cost me dollars (as opposed to simply keeping my coin), of course I lost money by giving it to you. This is basic.
Me no thinks you understand transfer protocol very well. Let me splain...
If someone uses a transfer protocol to send $5, then gets back $20 using the same transfer protocol, that is calling making money. What you are doing is moving 0's and 1's around and claiming that you are making or losing fortunes... Let me make this perfectly clear to you... When making an investment in Bitcoin, cheese, goats, gold, intellectual property, don't count your chickens before they hatch. You didn't make or lose money until you realized that gain or loss by moving back into dollars, hence why you are taxed at that time and not as your investment is performing. You're screaming that everyone who has sold a goat has lost a fortune because the price of goats has gone up so much, which is not true. Nobody has ever lost a fortune from selling a goat.