I’ve made some test transactions to see how cost basis and other metrics are calculated. I notice some odd behavior. If I buy X amount of bitcoin using USD, then the cost basis is X. If I make the same purchase using stablecoin such as USDC, the cost basis is a different amount (see attached). Can anyone explain this behavior?
Stablecoins fluctuate in price and most of the time don’t equal exactly one dollar. So if you exchange $30K under the $1 peg for USDC and then later swap USDC (now above $1 peg) for BTC. You have technically profited due to the gain in USDC.