Due to the public nature of blockchain, there ARE going to be problems with the fungibility of #bitcoin.
Here are 5 scenarios that WILL arise due to $BTC's lack of fungibility in the near future.
Thread 👇.
Due to the public nature of blockchain, there ARE going to be problems with the fungibility of #bitcoin.
Here are 5 scenarios that WILL arise due to $BTC's lack of fungibility in the near future.
Thread 👇.
Religious individuals receiving direct transfers?
They will not want to accept BTC that has previously been linked to terrorist financing.
1/🧵.
We can say the same thing about fiat currency which had been used in terrorist financing, yet we don't hear a peep about that. Paper fiat currency comes with serial numbers, and they were put on the bills for some reason or other.
Serial numbers on the notes still don't show you exactly who has held them and transferred them.
Cash offers privacy and thus fungibility.
You can't track a paper trail of cash bills the same way you can track sats via a blockchain.
Good points. It would be great if Hive could solve the problem of fungibility, especially since it's not a privacy coin. If Hive can do this, word will get around. The next few years will definitely show a need for this niche to be filled.
Most of the coins are worried about adding a privacy layer because it makes them "unregulatable".
But we are that anyway so have nothing to lose lol.
I'm not sure of the technicalities or alternatives, but I'd like to see it talked about!
Small businesses that only sells ethical products?
They will refuse to accept certain BTC with a history of being used to buy illegal or immoral goods.
2/🧵.
Why? They all accept cash that has been used for the same things and even have drugs physically on them. I doubt any of these will be an issue.
You really can't see a situation where 'tainted' Bitcoin, such as those linked to public wallets used by drug cartels, would be worth less than others?
I thought you, Mr Negativity himself, would 100% agree with this
You're a strange one.
Common sense is simply common sense. Did you know that most of our money supply has traces of cocaine on it? Priests still use it though.
I did.
But your cash doesn't have an easily accessible public ledger that traces the identities of which drug mule has used it to test his product.
As a result of transactions being private, cash USD is more fungible than $BTC.
I see what you're saying and I doubt BTC will become a main currency. #BTC is the start of something, but I'm sure it's hardly the final product. Without any real privacy, it's not ideal for freedom lovers.
I agree :)
Non-profit charities accepting donations?
They will refuse to accept BTC that has been linked to criminal activity, as it would tarnish their reputation and damage the trust of their donors.
3/🧵.
Governments receiving taxes?
They certainly will refuse to accept the BTC with a history of being used for money laundering, as this would be against their legal obligations.
4/🧵.
Financial institutions receiving deposits?
They will refuse to accept certain BTC with a history of being used to fund illegal activities, as this would put them at risk of regulatory fines.
5/🧵.
Fungibility in crypto is the missing piece.
A problem that privacy coins like #monero solves.
Read more 👇.
https://leofinance.io/@forexbrokr/fungibility-in-crypto-the-missing-piece