Technologically cryptocurrencies are well above the fiduciary currencies and are positioned as a great competition today. Tradition, trust and credibility are aspects that physical money possesses, but it also presents discomforts such as transaction costs and other factors. With respect to the cryptocurrency and crypto-active market, some financial institutions, given their great potential, state that these resources can not serve as a unit of account or as a means of exchange since everything is handled virtually and that reservoir of value that a physical currency possesses can not have it an electronic currency.
Competition is the engine of a large number of activities, but is associated with the idea of rivalry between two or more actors to achieve a goal.
In Economy, this conception has been complemented by another one that considers the competition as a mechanism of the organization of production and the determination of prices and rents.
In any of these situations, producers will share the market with a high number of buyers. However, there are also situations in which there are a small number of applicants. It can be said that the higher the number of participants, the more competitive the market will be.
Competition is an idealized representation of the markets of goods and services in the reciprocal interaction of supply and demand determines the price.
There is a high number of sellers and sellers in the market, that is, the amount that each, they, the answer. . That is why producers and buyers accepted market prices as data. In this case, the competition between the buyers will lead to that nobody can buy at a lower price than the purchase of the rest. This is the competition between sellers and sellers.
Since the company can alter its volume of production and sales without this having significant effects on the price of the product it sells, it must accept the price of the product as a piece of information, this is known as the accepting price. The price is taken as a parameter and the decisions of the companies do not depend on the reactions that they estimate that the other companies will carry out as a consequence of modifications in the productive policies. In competitive markets there is no rivalry between companies, but impersonal competition.
Buyers and sellers should be indifferent about who to buy or sell, that means that the good bought or sold is homogeneous. Each unit of a certain good must be identical to any other of the same; otherwise the producer of some good or service slightly different from the others will have some control over the market and therefore over the price of their product. In other words, this assumption implies that there are no brands that differentiate the products.
Buyers and sellers should have full knowledge of the general market conditions, that is, the sellers would know what the buyers are willing to pay for their products, while the plaintiffs know at what prices the bidders wish to sell. It is possible to correctly predict that price that will balance the market.
Once the equilibrium price is known, buyers do not accept to buy at a higher price and bidders refuse to sell at a price lower than the equilibrium price. In such a situation there will be no dissatisfied buyers or sellers; all those who want to sell may do so, and all those who want to buy will do so in the desired amount, but always at the equilibrium price.
The freedom of productive resources at the exit and entry of the market explains that those who wish to dedicate themselves to the production of a good or service may do so without any restriction preventing them. In other words, this assumption implies free entry and exit of companies in an industry as a response to incentives.
Publicado en el blog de Cryptofera