This study examines the accounting treatment of cryptocurrencies through a comprehensive case study approach, focusing on Bitcoin’s distinctive characteristics compared to traditional monetary systems. This study; explores fundamental differences between centralized, decentralized, and distributed network structures, emphasizing how cryptocurrencies operate without central authority through blockchain technology and peer-to-peer mechanisms. The study investigates various Bitcoin acquisition methods including exchange purchases, altcoin trading, and mining processes, analyzing their respective accounting implications. Through detailed examination of cryptocurrency accounting practices, the research addresses four primary treatment methods: marketable securities accounting, cash equivalents treatment, foreign currency accounting, and mining-specific procedures. The study demonstrates that under Turkish accounting standards, cryptocurrencies should be treated as foreign currency, recorded in auxiliary Bitcoin accounts under the 100 Cash classification. Key findings reveal practical implementation through comprehensive examples showing Bitcoin transactions recorded with foreign exchange profit/loss recognition using accounts 646/656, commodity trading entries through account 153, and mining-related accounting procedures. The research shows how central banks’ non-recognition of cryptocurrencies as foreign currency leads to alternative treatments as precious metals, liquid assets, or trade goods, with detailed journal entries for each approach including domestic sales transactions and cost recordings. The study contributes significantly to cryptocurrency accounting literature by providing concrete guidance for practitioners dealing with digital asset recognition, measurement, and reporting challenges in contemporary financial systems, offering multiple accounting frameworks for different regulatory environments.