Why is cash considered a fungible form of digital currency?

1 answers

• Kaplan BarberMar 24, 2025 · 5 months ago
  Cash is considered a fungible form of digital currency because it can be easily divided and combined. Unlike physical assets, such as real estate or stocks, cash can be broken down into smaller units without losing its value. For example, if you have a $100 bill, you can easily exchange it for ten $10 bills or twenty $5 bills. Similarly, you can combine smaller units of cash to create larger denominations. This divisibility and combinability make cash highly fungible and convenient for transactions.
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