round and round we go.

so when someone sends “dirty” bitcoin, to an address with “clean” bitcoin, how does the balance show up in a wallet?

it adds it all together, yes? one balance.

pointing to a UTXO to say that makes it unfungible is smuggling in subjective preference in an objective analysis

Like saying this clean 5 dollar bill in my wallet is not fungible with the dirty 20 in my wallet.

“this is not that” therefore not fungible is incoherent

i think we squeezes any and all value out of this back and forth.

I do thank you for highlighting the distinction between sat and utxo. I was using them interchangeably 🤣 and they are non fungible

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it isnt "subjective preference"

its real world information.

UTXOs transmit history along with value.

they have different histories.

therefore they are not fungible.

its extremely simple.

cash has IRL identifying features.

but in practice, these features aren't tracked and known.

therefore cash remains fungible.