You guys confuse traceable with fungible too much they are not the same thing.
Discussion
Adam Back talking about the fungibility problem of Bitcoin years ago:
https://xcancel.com/DontTraceMeBruh/status/1880019339027575222#m
Full video:
I'm not trying to be antagonistic btw. I don't think fungibility is binary either, but I think compared to Lightning sats or Monero, Bitcoin on-chain fungibility is definitely lacking (distinguishability among coins because they are inseparable from their histories - I understand on a protocol level they are fungible, but in the real world those coins carry their histories with them.)
I always think of this of this quote from BinaryFate:
"You don't ask nicely that everyone else not spend your coins; You just protect them using a cryptographic key.
Similarly, you don't ask nicely everyone else not distinguish your monetary units; You just make them *technically* indistinguishable AKA fungible."
Yes I can agree that there are some fungibility issues but to call it out right non fungible is simply not true. That is the part that erks me.
It’s almost like saying Bitcoin has no value when definitely does have value in the market.
It just makes my BS meter go off.
I always like to link this article. Very didactic 👇
I’m aware I first saw this years ago. The problem with this “Bitcoin is non fungible” statement is not true. If in fact Bitcoin were non fungible it couldn’t and wouldn’t be used as a medium of exchange AT ALL it wouldn’t work AT ALL. No one would accept a non fungible medium of exchange so the fact that people use it all the time as such proves this statement false. It’s traceability causes payment issues in some cases but this doesn’t make all bitcoin non fungible it’s a ridiculous assertion.
Indeed not every single sat actually is tainted, but the fact that SOME are is a real and valid concern. And over the years the quantity of tainted btc will just increase, making the situation worse. Paper over this problem is hypocrisy from BTC maxis
Yes denying there is any concern is just as ignorant as saying it is non fungible.