Need a crypto tax expert opinion. 

If someone were to purchase a large amount of ETH and let it sit for a year before doing any other transactions; would this allow you to negate all the annoying tax events that occur by just using your ETH. Would they not become long term?

Let's say you purchased 100 ETH at $2,000 each. After 1 year, you use 1 ETH (now valued at $5,000) to buy a nice 🎩. You would have to pay long-term capital gains on $3,000 because you sold 1 ETH that was acquired for $2,000, and it appreciated by $3,000.

eng @matchaxyz 🍵 • @0xproject • casting in /chiblings • /matcha • /accessibility • /henry-dev • /investooor

Ahh. Yah forgot that part. But you could get a benefit from using old ETH as you could be paying 37% on that $3k vs 15% for long term?

I got it now. 
Ya know. This would be a lot easier if they didn’t make you guess how much you owe. 
Now if I wanted to argue the 🎩 was just a rollover investment?

The 1 ETH in that example would be considered a long-term capital gain because it was held for more than one year before being used to purchase the 🎩 😊.

FIFO cost basis methodology already forces you to go from oldest to newest, so yes, you will benefit from using the older ETH acquired.