What is a Fungible Token?
A fungible token is a physical currency or digital asset that’s equal in value and is mutually interchangeable with assets of the same type. For example, a Bitcoin is always valued the same as another Bitcoin.
Related Term:
Commodity
Fungibility denotes that one unit of a commodity is equally exchangeable for another unit of the same commodity, such as one barrel of West Texas crude oil being equivalent to any other.
Therefore, a fungible token is a physical currency or digital asset that is always equal in value and is mutually interchangeable with assets of the same type. For example, a Bitcoin is always valued the same as another Bitcoin.