Fungibility Meaning Examples How Does It Work
Fungibility Meaning The procedure makes it feasible to trade, exchange, or use goods and commodities in question. The only condition is that interchangeable products must be indistinguishable from each other in terms of value, quality, and utility. In other words, one unit of an item should be equal or uniform to another quantity of the same asset, regardless of its origin and ownership, for a substitution to occur. Fungibility is different from liquidity, where the exchange of a commodityCommodityA commodity refers to a good convertible into another product or service of more value through trade and commerce activities....