“Fungible” is a term that describes a commodity or good that’s interchangeable with another identical item. This quality of interchangeability is crucial for many markets to function efficiently.
For example, in the world of finance, money is fungible because one dollar is identical to another dollar. Similarly, Bitcoin is fungible because any one Bitcoin is identical to any other Bitcoin.
In contrast, non-fungible items are unique and can’t be replaced with something else. A painting, for instance, is non-fungible.
This concept has recently been popularized by the emergence of Non-Fungible Tokens (NFTs) in the digital art world, where each token represents a unique piece of artwork.
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