Quote:
Originally Posted by cstreit
Whats the basis for a dollar generated out of thin air?
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That's a relatively straightforward question. Like any other business:
- The % annual depreciation of the equipment used to create it.
- The electricity used to create it.
- A portion of the Internet access services.
- A portion of the "home office" real estate allocated exclusively to the creation of the asset.
Etc.
Think of it like a farm in your backyard, and you sell the produce at a local farmer's market. Really no different.
Actually, the only difference would probably be if you never convert the digital coins into USD. In that case, they would be similar to inventory, like if you were producing wine and letting it sit in your cellar for 5-10 years. But with the crypto, I would imagine that it would be difficult to justify "losses" from the creation of the stuff if it's never quite converted into currency. I don't know how a startup wine manufacturer would allocate their startup losses for several years before they sell - might be a specialized area of farming accounting?
-Wayne