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#fungibility

1 post1 participant0 posts today
Kanzan
I have 2 different ribeyes.
They're both 350 grams and are identical in appearance and price.
These two ribeyes are fungible.

Now suppose that you know that one ribeye comes from a premier grass-fed rancher with a stellar reputation.
The other comes from a shady feedlot where you've heard they are heavy on the antibiotics.

The steaks are no longer fungible.
Even if the stakes fetch the same market price 90 (or some arbitrary high number) percent of the time.

We could introduce mixing to make them fungible again.
The steaks are put in a box and shuffled and nobody can tell which is which. We have reset the reputation information and fungibility has been restored.
But they are not fungible as long as they can be distinguished from each other.

A better example might be cups of rice. We have two separate cups of rice that appeared to be identical. The grains in one cup are indistinguishable from the ones in the other cup.
Then we hear that cup 1 is koshihikari from Japan and the other is an American knockoff thats sprayed with Roundup.

Those cups of rice are no longer fungible.

EVEN if you could theoretically switch individual grains from one cup to the other without anyone knowing, they remain not fungible.

Reputation effects fungibility in money and all assets.



#Bitcoin
#fungibility
#fungibility
*
Kevin Karhan :verified:

@maikel basically, it boils down to the few key features of #Monero:

1. #Anonymity & #Privacy: Unlike with any other #cryptocurrency (aka. #Shitcoins) it's not just pseudonymous in that there is no mandatory linkage between individuals & their wallets, but the entire transaction history and balance is hidden. Unlike say #Bitcoin or #Ethereum one cannot track the coins from the moment of mining to their destination.

2. Speed: Monero's network does mine one block every 2 minutes. After 10 blocks any transfered balance gets unlocked for spending. That means that a transfer is completed at worst within 6 minutes and the balance is being unlocked at worst after 24 minutes. This makes it faster than Instant-#SEPA which only has a 1 hour SLA.

3. #Fungibility: Like #cash all it's coins are equal, since they cannot be tracked. This makes Monero the digital equivalent of cash.

4. #Scalability & #Stability: Monero adaptively self-adjusts block sizes and mining difficulty based upon demand (transactions in it's mempool aka. requested transactions that have to be added to the blockchain) and supply (total blockchain hashrate). Unlike Bitcoin and Ethereum it has a fixed Tail Emission Rate of at least 0,6 #XMR (Monero) per block, so the miners solving it get at least 0,6 XMR (+ transaction fees), which is a longterm stable rate. Bitcoin and Ethereum will necessitate huge transfer fees once their last coins are mined to make sense, which will result in the crash of said cryptocurrencies as they'll be too expensive to trade!

5. Anti-#ASIC and focussed on #CPU|s of general-purpose machines: Whilst it does run on #ProofOfWork, it's specifically designed to run poorly on #GPU|s and not on #ASICs as the latter one are not just manufactured #eWaste but also inherently increase the centralization (with less than a dozen big miners controlling >50% of Bitcoin and Ethereum's hashrate respectably). Thus it's the "least worst" in that regard. #ProofOfStake is not possible due to it's privacy-based setup (#Staking necessitates a public balance) and unlike a #Shitcoin like #FileCoin it doesn't incentivize #hoarding components. (in this case: #HDD|s)

6. Accepted & Convertable: Whilst there is a concerted effort to ban Monero, there are payment processors like #NowPayments that accept Monero. It's low transaction fees and good speed make it useable in settings like Restaurants and Online Stores (sadly not retail, because it would need to be like 60x faster)... And even then it's easy to convert to/from Shitcoins.

That's the #TLDW of Whiteboard Crypto, Mental Outlaw and The Hated One…

And finally:

7. Monero gets continously developed and enhanced, whereas Bitcoin, #Litecoin and Ethereum don't even do proper #upgrades via #HardForks (see #EthereumClassic)...

YouTubeWhat is Monero? XMR Explained with AnimationsBy Whiteboard Crypto
Replied in thread
Kevin Karhan :verified:

@mina @Nickiquote not only that, but anything that even closely resembles #cash in terms of #anonymitiy anf #fungibility like #Monero gets criminalized.

  • Not to mention cash just works and IMHO curbing on it's use is inherently bad, to the point that I thing the #ECB should make an #ES2 version of the #500EuroBanknote as the rising #Greedflation makes it more "necessary" than before...

People who argue one doesn't need cash because #card and #NFC #payment and #SEPA #WireTransfer exist would also argue people don't need #PressFreedom because they can write #LettersToTheEditor...

  • TBH I think that cash should be enshrined as acceptable payment methods, as the only exceptions I know [i.e. #RealEstate and #CarRental] are grounded in #security concerns:

Most car rental places don't want to handle cash and demand #KYC for insurance reasons and most banks and notaries (who also have to do KYC & #AML anyway!) have less money onsite than the average Supermarket has in a single cash drawer and don't like having that much stuff onsite anyway.

Replied in thread
Kevin Karhan :verified:

@SpaceLifeForm TBH, all #currency - even antique #metal #coins - is based off #fungibility.

  • That's why #BurgerKing in #Germany accepted #USD and not just #Euro and would happily sell me a Cheeseburger for a $5 note just as with a €5 note ( they only exchanged in Euro but that's beyond the point).

The reason why I can't even buy fries with 5.000 KPW [North Korean Won] has nothing to do with North Korea, but entirely with the fact that noone wants that money.

  • And that fungibility is why the #USD is even relevant and why the #Euro is stable: Because you can actualy buy shit with it.

#Gold, #Silver, #Platinum and even #Copper are not only inconvenient beyond small sums because they weight a lot but because their value sometimes fluctuates harder than #Monero and with the exception of Copper there had been Mass #Confiscations aka. state-based #theft of these per law.

So if you want to sell me on some #RareMetal #investment scheme: Please fuck off!

If not, disregard the last sentence...

Thanks.

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