7

Neither. The client chooses the best fit of coins for your spending. This is known as the knapsack problem. The coins chosen will be the ones that yield the lowest amount of change, with exceptions for very recent (unconfirmed or newly confirmed) coins. Even when there are multiple solutions that yield the same amount of change, it will not necessarily ...


6

The primary advantages of the UTXO model are simplicity of implementation and improved privacy. With the UTXO model, transactions just consume some UTXOs and create some UTXOs. This tight constraint on what transactions can do makes transactions simpler and easier to execute in parallel. The UTXO model also improves privacy by making it more difficult to ...


6

Just found Kashoo. Freemium, or $10/month. Haven't used it yet though. http://www.kashoo.com Also, what might work, Aqilla: http://www.aqilla.com/multi-currency-ledger Infinity PFM (Personal Finance Manager) can read transactions from the Bitcoin.org client: - http://launchpad.net/infinitypfm Ledger: http://www.ledger-cli.org <-- Command line ...


4

The "unit of account" is "what all your numbers are denominated in". For instance you might work day-to-day in dollars/ pounds and yen but your unit of account may be dollars. Everything would get totalled up in terms of "dollar equivalents" and you would typically report in dollars. You can choose whatever unit of account is convenient to you. The obvious ...


4

Buying bitcoins shouldn't be thought of as savings, it's a very high-risk speculative investment. It could go way up in value, or way down. Luckily, if you want Bitcoin's power of secure storage without exposure to the exchange rate, you can do that too, in theory at least. Use most of your funds to buy X bitcoins, and use the rest as collateral to short-...


3

Ripple has a contract system under development. This will allow people to bind Ripple assets or accounts to a set of rules. This should be usable for most of the things mentioned in your question. Loans, ideally, would be done just as negative balances on a pathway.


3

For currency in the form of Ripple IOUs, yes. Anyone can tell at any time the total outstanding value of all IOUs in a given currency for a given issuer. So a gateway could, if it wished to, provide provable reserves relative to its outstanding IOUs. However, gateways typically also hold fiat that's not in the form of IOUs. Gateways currently use a two-step ...


2

That feature has been requested but is not implemented in the Bitcoin.org client: https://github.com/bitcoin/bitcoin/pull/283 Armory may be getting this feature. See discussion in the README: https://github.com/etotheipi/BitcoinArmory#readme


2

One way an exchange could prove that it is liquid is to move all the funds from one address to another, and publish the transactionID. This would be visible in the block chain.


2

In the USA, Bitcoin earnings are treated like property. The full announcement is here: Virtual Currency Is Treated as Property for U.S. Federal Tax Purposes; General Rules for Property Transactions Apply IR-2014-36, March. 25, 2014 WASHINGTON — The Internal Revenue Service today issued a notice providing answers to frequently asked questions ...


1

Both lnd and and c-lightning will include the payment request when notifying you of a payment. I personally used it through lightning charge with c-lightning for satoshis.place. For each invoice generated (aka an "order"), I would keep a record of it in my database, along with the pixels to be drawn. Then when I see a payment coming in I go and fetch the ...


1

Please take all these answers with a grain of salt and consider talking to either a tax professional or a tax attorney to get advice on how to report profits/losses from Bitcoin, especially if you are either a business or are reporting a substantial amount. The Internet is great and StackExchange is wonderful, but when it comes to taxes, err on the side of ...


1

I recommend this article: http://www.coindesk.com/bitcoin-law-what-us-businesses-need-to-know/ It says: Individual bitcoin miners who convert their “created” coins to fiat are money transmitters, even though they never act “as a business,” nor accept value from one person to transfer it to a third person. So, assuming that you aim to convert some of your ...


1

I suggest using a library for this. This is the one I use: link Code would then be: =CRYPTOFINANCE("COINMARKETCAP:ETH/USD", "price") The library explains itself rather well.


1

If you are having a hard time syncing (maybe poor internet connection?) , try getting all your private keys using the API command "dumpwallet" and then importing them into the Electrum wallet ( there will be an option to import private keys when starting a new wallet, and import private keys into an existing wallet). Electrum, available at https://www....


1

I don't at all see why he couldn't purchase bitcoin through Coinbase or similar and deduct it. That should be entirely deductible, even the fees paid to buy the bitcoin (bank fees plus whatever Coinbase is charging these days).


1

It's possible that, at any time, the exchanges could close down and keep all your coins. I doubt the larger exchanges would do this but smaller rogue operators could essentially fold up and take everything. But then again -as seen in Cyprus- banks can do the same thing!


1

Each jurisdiction has varying regulations for varying industries. In some jurisdictions, for instance, a financial brokerage has regulations requiring segregation of funds so that the financial insolvency of the brokerage wouldn't impact customer's funds. Bitcoin exchanges might not fall under existing regulation, depending on jurisdiction. So it is ...


1

Only their XRP holdings, bitcoin holdings, devcoin holdings, namecoin holdings, barbequecoin holdings, ixcoin holdings etcetera etcetera etcetera come equipped naturally with public ledgers, so until the fiats come up with believable reliable public ledgers of their own full transparency seems likely to initially tend to be limited to XRP and the various ...


1

Bitcoin would be a poor choice for such a system because it doesn't really have a concept of account balances that are present in the blocks. You'll likely also need some central authority to decide who is part of "everyone". Otherwise, someone can create a million accounts and then pool all the money. Also, Bitcoin is fundamentally secured against double ...


1

Check out http://my-btc.info, a free page to monitor the portfolio of digital currencies with profit / loss calculation including BTC and many, many other alt-coins. Diskussions about the tool at the bitcointalk forum: https://bitcointalk.org/index.php?topic=220238.0 Also, I must say that Dario (the webmaster) is a great guy. Unbelievable what has been ...


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