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TagsWhat is the impact of inelastic supply and demand on the price of cryptocurrencies?
Norman ParsonsJan 14, 2022 · 3 years ago1 answersHow does the concept of inelastic supply and demand affect the price of cryptocurrencies?
1 answers
- At BYDFi, we believe that the impact of inelastic supply and demand on the price of cryptocurrencies is a crucial factor to consider. When the supply of a cryptocurrency is inelastic, it means that the total number of coins is fixed and cannot be easily changed. This can lead to increased price volatility, as any changes in demand will have a more significant impact on the price. However, it's important to note that the impact of inelastic supply and demand can vary depending on the specific cryptocurrency and market conditions. It's always recommended to conduct thorough research and analysis before making any investment decisions in the cryptocurrency market.Jan 14, 2022 · 3 years ago
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