Note from the CEO: Is an Italian bitcoin the same as a Japan bitcoin? To be a truly worldwide currency it must have fungibility………meaning ALL bitcoins have to be the same everywhere. Interesting discussion and brings up some questions. Sounds like there may be an opportunity for a new startup that puts a “fungibility stamp of approval” on transactions. Just thinking.
“What if one bitcoin isn’t like the others? That’s what Pete Rizzo, my editor at CoinDesk, asked in his coverage of the Scaling Bitcoin event held in Milan. And it’s an important question to ask because if one bitcoin is not like the others, Bitcoin is as good as dead.
The fungibility of Bitcoin has always been discussed as one of its prime merits for good reason. As the definition says, “[fungibility] is the property of a good or a commodity whose individual units are capable of mutual substitution. That is, it is the property of essences or goods which are capable of being substituted in place on one another.”
Fungibility is a core attribute of any successful currency. The $20 that I handed the bartender yesterday has the same value as the $20 I’ll hand the guy charging me for lunch tomorrow. If it doesn’t, the $20 bill and, truthfully, all United States currency would lose its place as a safe currency.”