Fungible Definition - Glossary

Fungible means interchangeable. Each unit is identical and can be exchanged for another of the same kind.

Fungible refers to an asset's ability to be exchanged for another of the same type with equal value. Currency is a prime example; one dollar is always worth another dollar. In the crypto world, Bitcoin is fungible. Each Bitcoin has the same value and can be swapped for another without any difference. Fungibility is crucial for liquidity and ease of trade, as it ensures that assets can be easily exchanged without loss of value or utility. This property distinguishes fungible assets from non-fungible ones, like NFTs, which are unique and not interchangeable.