What is the meaning of “fungible”? - Crypto in Plain English - Episode 256 - by cryptohunt.it

Are YOU a crypto normie? If so, welcome! CLICK HERE to start (or continue) learning about everything crypto! What is the meaning of “fungible”?

Welcome to the Cryptohunt Jam, where we spend one minute a day to explain crypto. In plain English. My name is Christian Byza, Co-Founder of Cryptohunt.it and I am your host of this daily show.

You’ve heard the term before NFT: Non fungible token. And just when you thought that crypto people couldn’t make even more simple concepts sound complicated, here we are…

So: What does fungible actually mean, and how does it fit into this context?

Being fungible just means that something is exchangeable for an identical item of the same utility. For example, if a recipe calls for two lemons, and you have a bunch laying around, either two of them can be used in it - doesn’t really matter which.

Another very common example of something completely fungible is a dollar bill. There are billions of those in circulation, and even though they are technically all different items, even with an individual serial number, they are completely exchangeable in practice because all have the same utility: Whether you pay for your ice cream with one or the other doesn’t matter.

You probably saw this transition coming: But crypto currencies are also fungible. One Bitcoin is completely exchangeable for the other.

Which leads us to NFTs… Why are they “non” fungible? Well, because each represents something unique. Out of the 10,000 existing Cyberpunks for example, each is unique, and has a unique value.

We don’t know what’s up with crypto people hiding behind complicated jargon - but let them just feel smart about it. You, meanwhile, can have a good laugh about it knowing that it’s really dead simple afterall.

Disclaimer: This podcast references our opinion and is for information purposes only. It is not intended to be investment advice. Do your own research and seek a duly licensed professional for investment advice.