I agree that "tainted" Bitcoin is nonsense.

Since decentralized swaps, mixers etc. are possible for Bitcoin, it is technically impossible to filter out "tainted" coins.

If I use a decentralized atomic swap to trade my untraceable Monero for somebody's "tainted" Bitcoin, then how would the simple act of owning that Bitcoin make it legal for some third party to harass me? Even if the last owner did something illegal with that Bitcoin, that connection is severed the moment I become the new owner.

Any business that supports withholding a users funds over such unlawful reasoning such as: 'the user supposedly owns tainted coins' is a criminal business and should be avoided like the plague.

This is the real definition of fungible but it seems like the cryptocurrency community has brought in a whole different kind of concept to associate with the word ‘fungible’. If you ask crypto enthusiasts about fungibility they will most likely say that it is the concept of exchanging 1 bitcoin to another and it will still be the same.

Meaning they have the same value. But those ‘tainted’ bitcoin can be considered less desirable thus disapproving of the statement that bitcoin is fungible.

I do get that notion since bitcoin is also considered an asset and some people wouldn’t want to be involved in an asset that was involved in something dark or dirty.

The hesitation with transacting with those tainted btc just increases more because everything is public and can be linked back to you. However I still think that yes bitcoin is fungible.

There are monitoring platforms that try to assess if BTC is alright or tainted, and some websites can ask for additional documentation based on the fact that some BTC was flagged somewhere as tainted. Some also have policies like not accepting Bitcoin that was mixed (using a mixer).
Such policies do raise the question of fungibility of Bitcoin. I think Bitcoin is fungible, and that we shouldn't care about the notion of tainted coins. What authorities should care about is tracking money that is currently under control of criminals, but once the money is seized and released back via auctioning or exchanges, that shouldn't matter.

You can't expect they will use their common sense because they're using double standards.

If you received coins that they said "dirty coins", your coins will be frozen and you will be asked many information, but in the end you can't access your coins.
But if they i.e. Federal Reserve confiscate the coins from criminals, they can auction the coins and they will earn money from that. Federal Reserve is actually a legal mixer since they launder from "dirty coins" to "clean coins".

firstly fungible is not a 2(yes no) option answer.. its more of a scale, whereby some coins are less fungible than others

blackhat has to explain his version of fungible

because trading coins yes MAJORITYare 1btc=1btc

but investigating coins no, not all coins are the same as they all have unique identifiers (utxo references) which are linked to previous utxo spends.
for instance people would react more if just 10btc moved from an address of satoshis(the unspent of satoshi->hal address) compared to someone moving 10btc from a different stash more recent
where different coins are more important than the other

much like how some people value 1950's dimes more then 2020 dimes (hint: older ones were 90% silver)
or how mis printed/mis minted coins/notes are worth more then face value

oh and by the way
if he really thinks every coin is fungible.. then he needs to quit his day job promoting mixing to hide the infungibilities

yep
funny part is he pretends to say all coins dont have a thing called taint to make it seem to victims that mixing is safe to be handed dirty coins
yet, if dirty coins were safe(in his delusion) then why need to mix them? (rhetorical question)

the real thing is coins can be investigated and treated differently but he wants idiots to become victims to hand over their clean coins to scammers/creeps/perves and criminals.. so those weirdos can run off with victims clean coins.. whilst trying to promote to idiots that its safe and not a threat for innocent people to give up their clean un-criminally linked coins.. and be given dirty coins, which innocent victoms then have to explain to investigators why they have possession of dirty coins..

in short.. if your coins are good and clean dont give them over to mixers.. and definitely dont do it where you are not making profit from it
if you want to swap your clean coins... charge a criminal a premium.. after all you receiving dirty coins will most likely have your deposits into CEX frozen and investigated if the suspicion threshold(scale) is high enough to trigger an investigation.. which especially happens if all your coins were coming from mixing+ from a criminal stash

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as for "taint nonsense" bitcoin is a ledger every coin is accounted for as having a path back to its origin block reward creation and subsequent movement.. so taint is real.. as for businesses tagging when coins were used by certain people for certain reasons..

well if he says thats nonsense. then ill say again, why does he then promote mixing.. (rhetorically)

he is the type of person that suggests guns dont kill people... whilst he sells guns, and offers training on how to get away with murder by gunshot

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last comedy moment of blackhat

his overall mindset is if he can dupe/recruit majority into running all their coins through a mixer.. he can taint all coins as being mixed(and profit from the fee's of that business) and hope that if all coins are flagged as tainted, investigators will give up tagging all coins as mixed.. or stop investigating... but the real world wont work the way he hopes and he wont get his dream come true from his recruitees or from investigators

..
oh and he also doesnt want people knowing better ways to clean coins. as thats not the business he is in and he doesnt want people using methods not part of his business

MAJORITY are fungible because only a MINORITY are mixed/used by criminals
fungibility had nothing to do with total circulation or decimals, its more to do with utxo references and spending paths

In the cryptocurrency ecosystem space anything "tainted" is nonsense and if Monero is "tainted" but bitcoin can't be. And with that bitcoin can't be fungible. Developers have been trying to create coins that look similar like bitcoin and use it to lure people to invest in it but it doesn't work.

Even though you bring it from the literally perspective it can be fungible because "1 bitcoin is 1 bitcoin" as the Op said. There are many similar bitcoin related coins in the ecosystem but none can withstand with bitcoin because their prices are still very far below $1. Even the Monero the Op used as the example for the fungible is doing well more than those nonsense coins. And if you talk about others I will not have problem but remove bitcoin from the fungible argument.

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.

This is the reality of digitalization. It allows much easier control on the monetary flows than physical money, and governments don't want something digital yet anonymous like Monero to be widespread, so they will never allow it to be accepted by legally operating businesses.

the bitcoin network does filter transactions and UTXO's thats its job
you can only spend a utxo whos endpoint is unspent and has a valid path back to its original blockreward creation
and its current endpoint is known and associated with a publickey which the network knows which publickey can move which funds
you cant randomly pick any utxo and use it.. you have to use one thats been assigned to you and you have the keypair of to move that
..that is the security of the network. preventing random users treating all coin the same and swappable.. you only get control of coin you control and the network doesnt let people pick random utxo/coins

there is only one way to stop one taint path and create a new utxo with no taint path, and blackhat does not like people talking about it as it ruins his business plan of mixing

but for all other people interested
if you do a deal with a mining pool whereby you will pushtx your coin privately to them as a transaction spending your coin as fee's (to them). (destroying coinage/taint) that then becomes fresh new coin as a coin reward(the fee excess)
this new coin has no taint(it appears on blockchain as new mined coin reward). which a pool can then give to a user as new coin, clean coin..
enjoy a proper way to 'clean coin', just have to do a deal with a mining pool to get it