I thought I’d discuss the concept of what exactly makes a currency fungible, and why this is a credible problem for Bitcoin. Suppose I sell a nice hot rod car, say a ‘68 Nova with a 502 big block (502 of everything!!) for 70k. I accept a briefcase with enough $100 bills to convince me to part with the car and wave goodbye. 🥲. A week later the FBI shows up and says that a few of those bills I banked showed up with serial numbers from a bank heist. What do I say? I have no idea what you’re talking about. Don’t know, don’t care, and it doesn’t matter where the money is now really, under my pillow, in the bank 🤮, blown on whisky and cocaine, I have plausible deniability. Same scenario with Bitcoin…there is a replicated public ledger removing any and all plausible deniability. I lose my car, they seize the coins, or other real property because there is a case to be made, and evidence to support it. Money that has a legacy is not fungible, and unfortunately anyone brokering large transactions with such a currency is taking a very real risk. It’s my opinion that this must be addressed before Bitcoin hits the mainstream. Thoughts? Disagree? Let’s discuss.

#Bitcoin