Interesting poll results. Apparently, more than a third of the people in this topic believe that Bitcoin is not fungible!
According to your definition, nothing is truly fungible. Even XMR are not completely indistinguishable between one another.
fungibility is when all units are indistinguishable between one another
I don't agree on this definition. The way I understand it is: fungibility is when all coins are equally valuable. Take a bitcoin from Binance and another bitcoin from cocaine sellers. Both are equally valuable as far as I can tell. Both can be sold or used at an exchange rate of $66k, at the time of writing this. According to your definition, nothing is truly fungible. Even XMR are not completely indistinguishable between one another.
Well, fiat money is considered to be fungible, yet it has the same concept of taint. Entities like banks or some companies can freeze and reject transactions if they deemed as high risk by their algorithms, for example coming from a blacklisted country. Or when a person with no financial history suddenly deposits a huge sum in cash.
That's a good point actually. I never thought that electronic fiat is non-fungible. If you can track its history, how can it be fungible?
Being able to track the history is a privacy problem, not a fungibility problem.Nobody is using monero, gold/silver coins to purchase something so the gov don't care about them.
Off-topic, but Monero is pretty neat currency, and used quite a lot as medium of exchange lately. (Not as Bitcoin, of course)