bitcoin is not fungible
Discussion
Why isn't it?
Thank you for pointing that out. Bitcoin is fungible in theory; every Bitcoin unit is technically interchangeable. But in practice, its transparency introduces complications. Coins flagged as 'tainted' by certain entities are treated differently, which shows that Bitcoin’s fungibility isn’t absolute.
You're right, it's not. But that doesn't matter, the network works as indented. And because the state of the blockchain is basically the only thing every human on earth can agree on, what SOME of those people think or feel about CERTAIN UTXOs, that's not something I care about. Bitcoin is much more valuable than their opinions or feelings about a few UTXOs.
Hope this shows it's not such a big deal