Bitcoin and institutions

[Matthew Light]

How does a corporation run its books on Bitcoin instead of fiat? Is a Bitcoin world compatible with large companies? What I am most wondering about is how you prevent massive embezzlement / theft of the sort we have already seen in multiple Bitcoin companies such as Mt. Gox?

 

[Bloomie]

A U.S. corporation cannot run its books on Bitcoin, because Bitcoin is not recognized as a currency here. Every time you conducted a transaction in Bitcoin, you would have to record the disposition of Bitcoin as an asset sale and figure out its tax implications. The double taxation plus the monstrous administrative burden would put you out of business very quickly.

 

[Matthew Light]

I understand legally that a company cannot do this right now.

I am wondering about a future where government fiat currencies are pushed aside in favor of Bitcoin. How can companies function in that world without having their accounts stolen by employees?

 

[bitcartel]

@Matthew Light Please see my post https://makebitcoingreatagain.wordpress.com/2015/12/28/why-off-chain-transactions-hurt-bitcoin/ especially the paragraph about triple entry accounting (a topic worth exploring in its own right).