✅ According to Litecoin founder Charlie Lee, the unspent transaction balances (UTXOs) that underlie the Bitcoin ledger are potentially destroying the fungibility of the digital asset.

"Because of the history attached to every Bitcoin spent, every Bitcoin is not equal to every other Bitcoin - which I think is important for money," Lee said.

✅ UTXO allows blockchain analysts to flag addresses associated with illegal activity.

💵 If such bitcoins pass through exchanges that require KYC, they may be frozen or seized at the insistence of government agencies.