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Fungibility
By
Jake Frankenfield
Jake Frankenfield is an experienced writer on a wide range of business news topics and his work has been featured on Investopedia and The New York Times among others. He has done extensive work and research on Facebook and data collection, Apple and user experience, blockchain and fintech, and cryptocurrency and the future of money.
editorial policies
Updated January 23, 2021
Reviewed by
Gordon Scott
Reviewed by
Full BioGordon Scott has been an active investor and technical analyst of securities, futures, forex, and penny stocks for 20+ years. He is a member of the Investopedia Financial Review Board and the co-author of Investing to Win. Gordon is a Chartered Market Technician [CMT]. He is also a member of CMT Association.
Financial Review Board
What Is Fungibility?
Fungibility is the ability of a good or asset to be interchanged with other individual goods or assets of the same type. Fungible assets simplify the exchange and trade processes, as fungibility implies equal value between the assets.
Key Takeaways
- Fungibility is the ability of a good or asset to be readily interchanged for another of like kind.
- Like goods and assets that are not interchangeable, such as owned cars and houses, are non-fungible.
- Money is a prime example of something fungible, where a $1 bill is easily convertible into four quarters or ten dimes, etc.
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