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Are all bitcoins created equal?
Currencies work as if the tokens of money in circulation are interchangeable with one another. This fungibility means a dollar is always worth another dollar. Bitcoin is no different.
However, money can also act like a unique asset. A coin’s rarity, age, or its easiness to spend can gain or lose it additional value.
How should bitcoin be treated under capital gains tax? If you sell a bitcoin that you've had less than a year that has decreased in value, is that judged differently than a bitcoin you've owned since 2012 that has increased in value?
In this video, I explain how if tax laws assess bitcoin as fungible it could mean paying higher taxes than if it’s a commodity.
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