Hello! Seiiti Arata (English profile) on Nostr: I think there is a common mix-up of concepts in the debate about Bitcoin's ...

I think there is a common mix-up of concepts in the debate about Bitcoin's fungibility.

Fungibility is different from traceability.

In the Bitcoin protocol, one bitcoin is always equal to another. There is no distinction. Fungibility is an inherent characteristic of bitcoin. It is used to send and receive from one to another, just like a dollar, which is fungible.
The fact that we find an exception due to individual preference (like someone not wanting to receive certain dollars that have been part of a religious or mystical ritual) does not change the fact that the dollar is fungible.
However, something that confuses many people is traceability. Due to the nature of the timechain, on-chain Bitcoin transactions are traceable.
This means that anyone with access to on-chain data can, if they wish, set their own criteria to accept or refuse certain bitcoins based on transaction history.
But this is an individual choice from contractual freedom.
The legal nature of a thing does not change even when individuals exercise the right to make contracts based on information obtained through traceability.
A bitcoin remains a bitcoin, regardless of its transaction history.Here is video 03 of the Bitcoin short series. I will be happy to receive your comments and opinions to continue improving this understanding.