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Fungibility and traceability are orthogonal. Equities markets transactions are highly traceable and also highly fungible. Bitcoin's fungibility is limited by i
by otterley 11mo ago
Fungibility and traceability are orthogonal. Equities markets transactions are highly traceable and also highly fungible.
Bitcoin's fungibility is limited by its incredibly slow transaction speed. (This is true of all cryptocurrencies AFAIK -- even the fastest ones that are only capable of 100K TPS at best.)
- fruitworks 11mo agoEquities markets don't have to deal with "tainted" transactions, because every transaction is like a government-approved deed or title transfer. Bitcoin's transaction rate is artificially limited.
- otterley 11mo agoCorrecting myself: I said "fungible" but meant "liquid." Bitcoin is reasonably fungible today, though not as easily as fiat currency. Traceability hasn't done much to reduce Bitcoin's fungibility AFAICT.