People are getting riled up over the IRS ruling on Bitcoin; this analysis claims that now BTC has no chance as a currency (as opposed to a mere asset that might be useful for many reasons).
Here’s my question: Right now, suppose I convinced a bunch of gold bugs to start using gold coins in our little network, whenever possible, as the basis of our transactions. How would the IRS deal with it, assuming we kept records and wanted to do everything in compliance with them? E.g. would the gold coins be fungible, or would I technically have to keep track of when I bought and sold each one, for purposes of calculating the capital gain?
Also, how does this work with regard to foreign currencies right now?