sure sats are fungible.
but utxos are not.
since we have a utxo model
Bitcoin is nonfungible and utxos can be differentiated and censored.
Discussion
in theory couldn't be censored even though they are non-fungible. because in theory if you up your fee enough eventually a miner will include it in a block. Now with all this mining compliance going on idk. There might be a future where all mining pools are compliant.
its still censorship even if you can get it into a block eventually
Maxis going to be like, look! I paid a north Korean miner 30 percent of my transaction to get it into a block 5 days later. look censorship resistant!
That's really shitty censorship resistance.
And it isn't even only about mining
With the travel rule and regulatory encroachment, businesses are more and more concerned about source of funds.
Simply, it is visible
therefore it WILL be regulated.
to be fair right now OFAC compliance is almost non-existant. When it happens it is usually by mistake and there are researchers actively scouting for those. But I am afraid that if we relax too much that might not be the case anymore.