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MENTAL MODEL · M0253

Fungibility

Fungibility
BusinessHigh supportEconomics
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Version 1.0.0 · Updated 2026-07-28

CORE DEFINITION

In economics and law, fungibility is the property of something whose individual units are considered fundamentally interchangeable with each other.

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In economics and law, fungibility is the property of something whose individual units are considered fundamentally interchangeable with each other.

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Homogeneous assets have equivalent and interchangeable units (e.g., currency, crude oil), with prices determined uniformly by the market and competition converging; non-fungible assets (e.g., art, unique assets) have non-interchangeable units, with value derived from scarcity and uniqueness, allowing for premiums.

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Source support: Explicit

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    en.wikipedia.orghttps://en.wikipedia.org/wiki/FungibilityZH · Explicit
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