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This is not what "fungibility" means in terms of accounting & balancing: In fact, Bitcoin are fungible from a regulatory perspective: As every one USD is worth
by ta12653421 11mo ago
This is not what "fungibility" means in terms of accounting & balancing:
In fact, Bitcoin are fungible from a regulatory perspective: As every one USD is worth as another USD, every Bitcoin has same value as another Bitcoin and they are fully intechangeable without any change of value on both sides of the transaction.
Thats the reason why there are NFT - these are not fungible in that sense, as they are not interchangeable one by one, since one 1 NFT may have another value than the next NFT.
- vasco 11mo agoThey go to crypto meetups, they know all of this. Their point being that when provenance comes into play they are not fungible anymore because you may be able to spend a bitcoin but not another. So they are not all worth the same. You just repeated wikipedia, they were making a new point.
- ta12653421 11mo agoI work in the field on the side of an institution, I know very well what people on "Crypto Meetups" are telling :-D
- fasbiner 11mo ago[flagged]
- ta12653421 11mo agoThanks for coming here and thanks for your contribution. And no, English is not my native language, as a lot of people in here. Sorry if you dont like that. Nontheless, impressive how you could assume my professional experience does not exist. Great.
- fasbiner 11mo agoI did not say anything about your professional experience nor make any implicit assumption. You would benefit from using translation tools in order to participate more effectively with less frustration. This is not a personal attack, it is a factual statement about your level of English writing and reading proficiency. That you would interpret as such may not be a purely linguistic issue, but I am trying to be charitable and helpful.
- beeflet 11mo agoBitcoin associated with criminal transactions are worth less than "clean" bitcoin. so they are not fungible. All bitcoin outputs are naturally NFTs, for example see Colored Coins or Ordinals.
- ta12653421 11mo agoDepends on how each individual institution handles it: Some exchanges and banks to trace lets say the last 20 hops, and if these are OK, then they accept the coin. I know also about institutions which trace ALL hops, meaning: At their desk you cant ever sell a coin that has been in the dark only one day since its existance. Most have a relaxed approach, like "if the coin wasnt in dirty hands for the last 5 or 6, its OK for us"
- victorbjorklund 11mo agoNot in practice. Would you trade a clean bitcoin for a bitcoin stolen by North Korean hackers? Knowing chances are big you might get your coin sized. If you take that trade you are not bright.
- dahcryn 11mo agobut how do you know that before the swap? As long as this information balance exists, they are worth equal value
- ta12653421 11mo agogood one! This brings to my mind: Chainalysis or the exchanges Co should offer such service like "bitcoin cleanyness lookup" or similar :-) (maybe some do already and Im not aware of...) But the thing is: These service work wallet-based.
- victorbjorklund 11mo agoYou check the transaction history. So your argument is that they are worth equal as long as the buyer doesn’t have all the information? It’s like claiming that a new CPU is worth the exact same as an old broken one because you can trick someone to buy it for full price if they don’t check it before paying.
- chipsrafferty 11mo agoIf you take any trade that is supposedly 1:1 you are not bright because there is no reason to do it.
- ekjhgkejhgk 11mo ago> In fact, Bitcoin are fungible from a regulatory perspective: As every one USD is worth as another USD, every Bitcoin has same value as another Bitcoin and they are fully intechangeable without any change of value on both sides of the transaction. They're not worth the same from a market perspective. When bitcoins are dirty they trade at lower price.
- chipsrafferty 11mo agoDollars, too.
- Eddy_Viscosity2 11mo agoEchoing the other comments here, but because of the blockchain every bitcoin is effectively unique as it is defined by its history of transactions. As is pointed out by other commenters, a shadey transaction history could lead to lower value. A US dollar on the other hand is truly fungible. It doesn't carry that burden of knowing what transactions it was previously used for.
- Rogach 11mo agoYou mean this only for cash US dollar - i.e. physical bills? Not USD in bank accounts?
- Eddy_Viscosity2 11mo agoUSD in bank accounts is definitely fungible. They may track who sends what money to whom. But this transaction data is not tied to specific 'dollars' just to 'dollars' in general. So yes, perfectly fungible.
- Rogach 11mo agoInside a single bank - definitely. But if you have dollars in different banks then they suddenly start having very different value. Couple examples just in case: 1. Spending dollars on US soil from an US bank account won't incur extra fees (at least visible to the person - I know about interchange fees, but they are borne by the merchant), while using card issued by a foreign bank can incur fees for cross-border transactions (at the level of 2-3% usually). 2. Sanctions and KYC concerns also make different dollars have different value. Money in US bank account of an US company employee can be used at face value - money in some less-favored country bank, not so much.
- Eddy_Viscosity2 11mo agoThis examples don't mean the dollars aren't fungible only that where they are stored can make them less accessible or subject to fees. Its like the difference between a gold nugget in your hand and one that's buried deep in the ground. The gold itself is inter-changeable, one nugget is worth the same as the other if side by side. Only one is in a more inaccessible location and you'd have to pay the cost of retrieving it. If you magically switched the two nuggets, the situation would be exactly the same from a value perspective.
- csomar 11mo agoNeither the USD nor Bitcoin are purely fungible. Lots of cash dollars are equal less than the equivalent USD in a US bank account.
- Stevvo 11mo agoA dirty dollar with a blacklisted serial is not worth the same as a clean dollar. You can say the same about a dirty UTXO.