<p>I found this on a <a href="https://www.quora.com/What-are-the-pros-and-cons-of-Bitcoin-being-taxed-as-property-instead-of-currency-by-the-IRS" rel="nofollow noreferrer">Quora</a>. Hope it helps.</p>
<h2>Property</h2>
<h3>Pro:</h3>
<p>It is eligible for long-term capital gains tax treatment, if held for more than one years (which is a huge benefit). The US has very favorable capital gains taxes.</p>
<h3>Con:</h3>
<p>Every purchase made with bitcoin will be a capital gain or a capital loss that must be tracked, even if the purchase price is denominated in bitcoin.</p>
<h2>Currency</h2>
<h3>Pro:</h3>
<p>Money spent with bitcoin on bitcoin-priced goods &amp; services would not give rise to a separate taxable transaction. Theoretically one could benefit from bitcoin appreciation and never be taxed upon that appreciation.</p>
<h3>Con:</h3>
<p>Conversion of bitcoin to other currencies would give rise to taxable income, if a gain occurs, and losses would be unrecoverable (for individuals).</p>
<hr />
<p>I think coin.dance (your link) is not 100% up to date.</p>

CC BY-SA 3.0
2017-10-28T20:47:42.060Z
2017-10-28T20:47:42.060Z
2020-06-16T11:10:03.350Z
Zauz
<p><a href="https://coin.dance/poli#legalitybycountry" rel="nofollow noreferrer">Some countries</a> view Bitcoin as a commodity, some see it as a currency (and some ban it, but that's another story).</p>

<p>I read a few articles, but in layman's terms, what are the main differences about a <strong>commodity</strong> and a <strong>currency</strong>?</p>

<currencies><legal><politics>
Commodity vs. Currency
Basj
# Commodity vs. Currency

(Asked by: username_0 on 2017-10-28)

[Some countries](https://coin.dance/poli#legalitybycountry) view Bitcoin as a commodity, some see it as a currency (and some ban it, but that's another story).

I read a few articles, but in layman's terms, what are the main differences about a **commodity** and a **currency**?

**Tags:** currencies, legal, politics


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## 1 answers

### Answer by username_1 on 2017-10-28. Score: 1

I found this on a [Quora](https://www.quora.com/What-are-the-pros-and-cons-of-Bitcoin-being-taxed-as-property-instead-of-currency-by-the-IRS). Hope it helps.

## Property

### Pro:

It is eligible for long-term capital gains tax treatment, if held for more than one years (which is a huge benefit). The US has very favorable capital gains taxes.

### Con:

Every purchase made with bitcoin will be a capital gain or a capital loss that must be tracked, even if the purchase price is denominated in bitcoin.

## Currency

### Pro:

Money spent with bitcoin on bitcoin-priced goods & services would not give rise to a separate taxable transaction. Theoretically one could benefit from bitcoin appreciation and never be taxed upon that appreciation.

### Con:

Conversion of bitcoin to other currencies would give rise to taxable income, if a gain occurs, and losses would be unrecoverable (for individuals).

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I think coin.dance (your link) is not 100% up to date.


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