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#Fungibility is the property of a good or a commodity whose individual units are essentially interchangeable, and each of whose parts is indistinguishable from any other part.

Listening to a lot of #bitcoin podcasts trying to understand #ordinals and their ramifications. Nearly all are saying ordinals don’t affect fungibility, then move the discussion to block size, miners fees, etc. w/o giving any further explanation.

But according to the ordinals website, all 2.1 quadrillion sats can be identified, numbered and tracked, presumably making them distinguishable (vs. indistinguishable).

Who can provide additional clarity on ordinals and fungibility? Any resources you can point to would be helpful.

Reference:

https://docs.ordinals.com/overview.html

The Conscious Contrarian 2y ago

I think it’s a matter of who cares and what’s the use case. If the value of the Bitcoin network keeps rising, the people who care about transferring value across the internet will outweigh those that care about the value associated to a sat. Essentially, if no one really cares about the uniqueness of your sat, it returns back to fungibility, correct?

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Discussion

hopfield 2y ago

I will concede that if no one actually cares, then concerns regarding fungibility are moot. I guess it doesn’t matter…until it matters.

The Conscious Contrarian 2y ago

yep, given how many sats are out there, it seems very unlikely that more than a fraction will matter more than BTC’s fungibility, so I think we’ll find a natural equilibrium. And the fraction that will, will reduce supply of “fungible BTC” thus increasing the price.

hopfield 2y ago

Good discussion. Something to noodle on. Thanks.