What is fungible asset?

Describes goods or commodities that, when separated into single units, are indistinguishable from each other. Therefore, each unit of a fungible asset will have the same value. 1 gram of gold, for example, will have equal value regardless of what form it takes, e.g., ingot, bullion coin, nuggets.

What does fungibility mean?

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. Fungibility is the ability of a good or asset to be readily interchanged for another of like kind.

What is a non fungible item?

That gives us a non-fungible definition: Items that do not possess the same value and therefore cannot be copied or exchanged for another of its type. Fungible goods include fiat currencies and financial assets, like stocks. Many commodities and precious metals are also fungible.

Is money fungible?

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. Fungibility implies that two things are identical in specification, where individual units can be mutually substituted.