JohnQPublic
13th April 2015, 03:00 PM
Bitcoin Violates the Principle of Fungibility (http://cointelegraph.com/news/113897/bitcoin-violates-the-principle-of-fungibility)
"In light of recent events within the bitcoin industry, namely the Evolution Marketplace going up in a burst of flames with customer money, it has become clear that cryptocurrency deviates from traditional money in more ways than initially meet the eye.
Bitcoin, among a slate of other cryptocurrencies, violates the principle of fungibility within money - that is, each coin's transaction history differentiates them from every other bitcoin in circulation. With the collapse of the hidden Evolution Marketplace (http://cointelegraph.com/news/113829/dept-of-homeland-security-orders-reddit-to-reveal-users-linked-to-evolution-scam), these coins have now been tainted, and services are wilfully denying their deposit into wallets held by exchange businesses.
Bitcoin fungibility has been called into question and it is becoming glaringly obvious that this poses a threat to the stability and long-term usage of such currency. Exchanges want nothing to do with these stolen funds, and therefore, lessen their value in relation to otherwise identical cryptocurrency units..."
"In light of recent events within the bitcoin industry, namely the Evolution Marketplace going up in a burst of flames with customer money, it has become clear that cryptocurrency deviates from traditional money in more ways than initially meet the eye.
Bitcoin, among a slate of other cryptocurrencies, violates the principle of fungibility within money - that is, each coin's transaction history differentiates them from every other bitcoin in circulation. With the collapse of the hidden Evolution Marketplace (http://cointelegraph.com/news/113829/dept-of-homeland-security-orders-reddit-to-reveal-users-linked-to-evolution-scam), these coins have now been tainted, and services are wilfully denying their deposit into wallets held by exchange businesses.
Bitcoin fungibility has been called into question and it is becoming glaringly obvious that this poses a threat to the stability and long-term usage of such currency. Exchanges want nothing to do with these stolen funds, and therefore, lessen their value in relation to otherwise identical cryptocurrency units..."