How does subrogation demand affect the value of digital currencies?

1 answers

• Mar 19, 2022 · 3 years ago
  Subrogation demand is a legal concept that can have implications for the value of digital currencies. When an insurer pays out a claim for a loss suffered by a digital currency holder, they may have the right to pursue legal action against the responsible party to recover the funds. This subrogation demand can impact the value of digital currencies in a few ways. Firstly, it can create selling pressure in the market as insurers seek to recoup their losses, potentially leading to a decrease in value. Secondly, the existence of subrogation demand can make investors more cautious about holding digital currencies, as they may see it as an added risk factor. This can decrease demand and, consequently, the value of digital currencies. Overall, subrogation demand introduces a legal and financial element that can influence the value of digital currencies.
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