Lets get started... Where to begin. Is bitcoin truely fungible? If its easy enoughtoo classify sats as in... Non kyc vs kyc... Then no its not... Or is it?
Discussion
Definitely bitcoin isn’t but are sats?
I think more so. But they are linked to the on chain transaction... I need to really understand the ins and outs of lightning on a deeper level. I guess ecash is even more fungible with more privacy but obviously with substantial tradeoffs in security, etc
Honestly, I think it is still fungible.
If I came into your store with a face mask and the bank across the street is raising its alarm and I pull out some cash to buy a bunch of stuff from a duffel bag, you might wonder if you want that cash, but really, how much are you thinking: hmm, that $100 bill is really worth $10 because of its history.
Now let's say I come in normal clothes, a week after a robbery, and my money looks new, but nothing else is fishy... Do you reject the money? You'd probably only do that if you strongly suspected me... And even then, do you have prejudice against the money or against me?
So now bitcoin. Here's the deal. I create a bitcoin address, you send bitcoin, how often am I going to look at its history to see if it was from a coin join or on some blacklist?
Exchanges do it for sure, but if some people look at it and treat it differently to others, then why would we only look at one type of buyer (exchange/institutions) and base our definition based on their behaviour vs on the money itself?
Yeah so fungibility is context dependent. In most cases it is totally fungible but in cases where you and your addresses are being tracked? Like the trucker convoy??
Gimme your convoy trucker sats. I'll take 'em. Well, if I could afford them 😅.
Don't forget that the thing is global too. I don't live in Canada and also yeah, the banking system is kinda global when it wants to be too (sanctions) but even then bitcoin can work.