The Concept Of Demand And Supply In The Cryptomarket #002
Hello crypto friends,
I feel honored to come before you all this day to discuss on another great issue in the cryptospace.
I believe you are all doing perfectly well and are enjoying your activities in the community by actively commenting on the posts of other users.
The concept of demand and supply is inevitable in the operation of the cryptomarket and without this concept, there will be no reasonable movement in the cryptomarket.
Please stay tuned as we examine the concept of demand in the cryptomarket.
THE CONCEPT OF DEMAND IN THE MARKET
Like I earlier said, the concept of demand plays a crucial role in the dynamic operation of the cryptomarket.
Cryptocurrency as a decentralized and digital form of value exchange, has revolutionize the financial landscape by introducing a asset class with different characteristics.
To gain understanding of the intrecacies of the demand of the financial market, one needs to dive deep into the factors influencing it, it fundamental drivers and a wider scope of it's economic implications.
FOUNDATION DEMAND IN CRYPTOCURRENCY
The interplay of several factors (intrinsic and extrinsic) drives demand in the cryptocurrency market.
The extrinsic factors most often refers to a broader social, economic and regulatory influences.
The technology behind the development of cryptocurrency forms the foundation for their appeal in the market.
The immutable and decentralized nature of the blockchain provides security and transparency in the market, thus building trust amongst users.
Also, the concept of scarcity on bitcoin as a result of it's fixed Supply of 21m adds a digital rarity that greatly impacts it's demand in the market
The more scarce an asset is, the higher it's demand becomes.
Cryptocurrency offers a very wide variety of it's use cases, ranging from enabling defi applications to facilitating cross border remittances.
This utility often has a direct impact on the demand of these assets.
Using Ethereum for example, it's smart contract ability has spurred the growth of a vibrant ecosystem of Dapp, thus greatly increasing the demand for ether.
CONCLUSION
The Concept Of demand in the cryptomarket cannot be overemphasized.
In our next meeting, we shall be examining some factors affecting demand.
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But you have made a very valuable post today. I enjoyed reading your post. Best wishes to you.
Thank you very much for your kind words, I am happy you enjoyed reading my post 😊
You are very welcome to reply.
That is why I always reply, I love your response 😊
The Concept Of Demand And Supply In The Cryptomarket is a great post.
I love this concept too, that is why I spoke about it 😊