That's not what fungible means. Fungible means one is as good as the other, like cash, you can give anyone any dollar, hence it's fungible. Regardless of bar codes.

That doesnt mean the state cant track dollars or arbitrarily withold certain dollars. They will try and have tried with all forms of money.

Because they try to make bitcoin non fungible does not make bitcoin non fungible.

Part of the reason bitcoin is revolutionary is because it defunds oppression and arbitrary, forced state overreach. Its an important point and relevant