Well, let's make a comparison with cash as to whether BTC is fungible.
With BTC, currently all known services accept all coins and treat them as having an equal value.
The way that a government or other group could decide to compromise this fungibility is by tracking where the coins go and using blockchain analysis tools to try and report those coins as being owned by criminals. BTC users can subvert this by using mixers and other systems to obscure blockchain analysis, and can often remove the ties between their coins and any shady activity.
With cash, currently all known services accept all cash and treat it as having an equal value.
The way that a government or other group could compromise the fungibility of cash is by marking it to track where it goes, especially when deposited into banks. This is permanent and cannot be removed - you would have to launder your money and get new cash which is unmarked.
So how I see it, BTC is more fungible than cash.
Topic: Fungibility (Read 140 times)
In what sense do you think that Bitcoin is non-fungible? Merriam-Webster defines "fungible" as "being something (such as money or a commodity) of such a nature that one part or quantity may be replaced by another equal part or quantity in paying a debt or settling an account". Bitcoin seems to meet that definition; basically all entities who accept bitcoin will accept payment from any UTXO.
Is the non Fungibility of the bitcoin is a problem to become mainstream ? Can Bitcoin became fungible ?
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