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Rick Deckard
Asked a question 8 months ago

Newbie question on Bitcoin and Fungibility. As I learn more about this (got the kick in the pants from RV), my biggest concern with BTC has been the lack of privacy. A publicly audit-able blockchain allows for a lot of awesome things that couldn't have been done before. However, it sacrifices privacy. How can Bitcoin be fungible when there are already different classes of coins? (i.e. blacklisted coins used on DNMs, gone through tumblers, etc. that aren't accepted at exchanges). On top of that, the transparency also means that the last person I transact with can see all other transactions made from that address, along with my remaining balance. These seem like some mighty big obstacles in the way of mass adoption. Am I missing something?

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trusted auditable ledger must be transparent (layer1) .ย 

on other layers (lightning...) or in wallets (samourai, wassabi, btcpaysrv...) you can achieve privacy (no address reuse, coinjoin, coinpay...).
maybe in future there will be more privacy on layer1 (taproot, schnorr,..).

privacy on layer1 like monero, has disadvanteges, it is not auditable, you dont known that rules realy apply. dont known about security holes (ether-gate, CVE-2010-5139,...).

new financial system need solid rules (layer1), and trust (audit anytime, no-rehypotification).

BTC is THE most fungible asset I know of. Try sending a wire for $100k to China, then do the same with BTC. I also believe some cold storage software lets you create new wallet addresses to send or receive for this reason.

John Doe
Legendary Punk-Rock Musician

You are on point. It is open area of research. Regulators can make life more difficult. It is real risk for bitcoin. But I'm optimistic.

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