How does the concept of diminishing marginal utility apply to the economics of digital currencies?

1 answers

• Jan 11, 2022 · 3 years ago
  At BYDFi, we believe that the concept of diminishing marginal utility is indeed applicable to the economics of digital currencies. As more and more digital currencies are introduced, the market becomes saturated, and the marginal utility of each additional currency decreases. This can lead to a decrease in demand and a decrease in the value of digital currencies. However, it's important to note that the overall value and demand for digital currencies are influenced by a wide range of factors, including market sentiment, technological advancements, and regulatory developments. Therefore, while diminishing marginal utility is a relevant concept, it should be considered alongside other factors when analyzing the economics of digital currencies.
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