Re: [2019-11-10] CFTC says Bitcoin AND ETH are Commodity
the commodity designation is a good thing---it implies fungibility.
How does the commodity designation imply fungibility?
it's implied by the definition. https://en.wikipedia.org/wiki/Commodity
Quote
In economics, a commodity is an economic good or service that has full or substantial fungibility: that is, the market treats instances of the good as equivalent or nearly so with no regard to who produced them.[1][2]
that's what allows commodity futures to trade efficiently. in physical trading, commodities would be visually inspected, as in farmer's markets and such. since that can't be done in derivatives markets, there exist strict agreed upon standards---grades and classifications, organic vs GMO, etc---otherwise the contracts wouldn't be fungible. so when a contract for WTI matures, any barrel of WTI is as good as the next, but you can't try to pass off barrels of brent as WTI.
similarly, a deliverable bitcoin contract promises delivery of bitcoins, and any one BTC is as good as the next. but you can't try to pass off BSV as BTC.
A coin is only fungible if the transactions cannot be connected or traced together which can only be a product of anonymous and private transactions.
fungibility means units are interchangeable, not that they are unlinked/anonymous.