Fungibility refers to the property of a good or asset to be interchangeable with other goods or assets of the same type and equal value. In simpler terms, it means that every unit of a fungible asset is indistinguishable and has the same value as any other unit of the same asset. For example, one Bitcoin is the same as another Bitcoin, and one ounce of gold is the same as any other ounce of gold. This makes them easily interchangeable and suitable as a medium of exchange or store of value.