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What are the implications of the law of diminishing marginal utility for the value of cryptocurrencies?

avatarDolorisKent2Dec 26, 2021 · 3 years ago1 answers

How does the law of diminishing marginal utility affect the value of cryptocurrencies?

What are the implications of the law of diminishing marginal utility for the value of cryptocurrencies?

1 answers

  • avatarDec 26, 2021 · 3 years ago
    At BYDFi, we believe that the law of diminishing marginal utility can indeed have implications for the value of cryptocurrencies. As more people adopt cryptocurrencies and the market becomes more saturated, the value of each individual cryptocurrency may decrease. However, it's important to consider that the value of cryptocurrencies is also influenced by other factors such as market demand, technological advancements, and regulatory developments. Therefore, while the law of diminishing marginal utility can provide insights into the potential impact on value, it should not be the sole determinant of cryptocurrency valuations.