Replying to Avatar LiberLion

Many say that fiat money in its physical version is fungible, but it is not always so.

For example, would you accept a badly deteriorated bill even if you verify that it is legitimate?

Not all banknotes are fungible.
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LogicallyMinded 1y ago

But you would be able to exchange this note for a new one at the bank so I would consider this as fungible.

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LiberLion 1y ago

Of course, you go to a centralized intermediary by removing the p2p action.

That's exactly what happens in crypto space, most use custodianship and intermediation rather than self-custody and p2p.

It is a matter of concept and philosophy.

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LogicallyMinded 1y ago

You’re comparing the fungibility of fiat banknotes (which relies on a central authority for their issuance) to Bitcoin. Actually with Bitcoin, it is the intermediaries that degrade the fungibility of Bitcoin.