Bitcoin have no fungibility. Because it's not private, each Bitcoin is different, some of them are... you know... "tainted" or "dirty". By the way, theses dirty coins have a lower acceptability (send a dirty coin to Binance and you will see). By your own criteria, Bitcoin is not a money 😂

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Oh no a KYC exchange wont accept " tainted" bitcoin GFY.

The person which had send the tainted Bitcoin is fucked, not me. The vast majority of people having Bitcoin is for money and nothing else, the vast majority of people having Bitcoin is linked by KYC. It's possible to remain anonymous with Bitcoin but it's very difficult for the average person and it will be worse over time. Monero is not the king of DarkNet by accident.