You're arguing that the tailors of the emperors new clothes did not defraud the emperor. UTXOs do not move. FIFO satoshi accounting is not contained in the transaction. None of this is the reality of a bitcoin transaction. It's an imaginary system on top of the communication and with that comes implied meaning.

If a majority are convinced that the emperors clothes do exist, then you are forced to respect the clothes or face a beheading.

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A “UTXO moving” are your words not mine.

It can be obvious what input(s) led to the creation of a UTXO. If someone is sentimental about one of those inputs and it affects their behavior, that’s pretty hard to stop.

And clearly, people can come up with whatever arbitrary system they’d like (FIFO), to play games they want to play. If they understand it’s a collective hallucination that only has relevance so long as other players keep playing, then I don’t see the problem. There are many communities that invent parameters for games or collectibles that amount to “let’s agree to pretend such and such matters.”

I realize I did say “sell a UTXO” but that can be interpreted and understood in different ways.

You seem to interpret it as “moving ownership of a UTXO from one person to another” while someone else might interpret it as “using the UTXO as an input to create a new UTXO”. The people playing these games don’t care about being technically precise with their language.

To the extent that the imprecise language misleads people about how bitcoin works, I’m against it.