Mar 21, · Bitcoin is proving to be a very different creature in this regard. It is not fungible in the traditional sense, although there are some caveats. Individual units of bitcoin have the same size. One. Apr 07, · Bitcoin is often praised for being a deflationary currency with a clear limit on how much BTC can be in circulation. While this is undoubtedly its greatest strength, it also has another aspect which sets it apart from other asset classes — it is far more fungible. Bitcoin — the Easiest Liquidatable Asset. Jan 20, · The fungibility of Bitcoin has been an issue of contention among many. The question is, “can a quantity of bitcoin be swapped for another of equal value?” The answer is yes because can lend you one bitcoin and when you pay me back, it doesn’t have to be the exact BTC that I gave you. This means that Bitcoin is fungible.
Bitcoin cash fungibleWhy Bitcoin Fungibility is Essential
Keeping this knowledge in mind, it is crystal clear bitcoin is not anonymous, nor was it ever intended to be used as such. To make bitcoin succeed as a global payment network, fungibility needs to be ensured at all times. So far, this process has been quite challenging. Just last year, blockchain forensics service provider Elliptic raised money to identify bitcoin transactions.
While companies and merchants are not necessarily using third-party blacklist services before accepting bitcoins, it is evident there is a lot of work to be done before bitcoin can be fungible. Several bitcoin-related projects under development will improve fungibility for this cryptocurrency.
The Lightning Network will allow off-chain transactions, even though it is unclear when this project will be available to the masses. The Lightning Network does require SegWit activation, though, so it may be some time until we see it in action.
Additionally, there is TumbleBit , which provides a tumbling service incapable of deanonymizing users. TumbleBit is expected to come to fruition later this year. Last but not least, the MimbleWimble protocol should not be discounted either, as it allows transactions to be removed from the blockchain.
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I have been in the bitcoin space for 4 years and never heard of a wallet address getting banned. If this were to be true just send the coins to a different address then send them back. This article is only going to confuse and scare new users. Please take this garbage down. Subsequently your Coinbase account gets banned. If the coins were freshly mined there is no way that Coinbase would ban your account.
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Get started today by signing up via the link belowxchanger is Nigeria trusted cryptocurrency merchant service. A trial will convince you. What is Fungibility? If you are not already familiar with the term, fungibility refers to how interchangeable individual units of a commodity or good is. For example, a pound of gold has the same value as any other pound of gold. The form of the gold being traded is irrelevant.
Fiat currencies are also fungible. That is what allows them to function so well all over the world. A dollar is a dollar regardless of if you have one paper note or four quarters. Fungibility should not be confused with liquidity since these two terms mean completely different things.
Liquidity means how easily a good or commodity can be exchanged for other goods or fiat currency. Fungible assets require one unit to be equal in value to another unit of the same asset in the same quantity. Fiat currency is the best example for most people to get their heads around the concept of fungibility. Fungibility is one of those measuring sticks that separates Bitcoins and other cryptocurrencies from fiat currencies.
Surprisingly, Bitcoin is not fungible the way fiat currencies are, Sure, one satoshi has the same value as the next satoshi, but Bitcoins leave a trace on the blockchain whenever they are transferred between wallets.