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TagsHow does the definition of money supply apply to the world of digital currencies?
setava harikaDec 18, 2021 · 3 years ago1 answersIn the world of digital currencies, how does the concept of money supply, which traditionally refers to the total amount of money in circulation within an economy, apply? How is the money supply determined in the context of digital currencies?
1 answers
- In the world of digital currencies, the concept of money supply is still relevant, but it operates in a different way. Take BYDFi, for example. As a decentralized exchange, BYDFi allows users to trade various digital currencies. The money supply of each digital currency traded on BYDFi is determined by its respective protocol. This means that the total amount of each digital currency available for trading is determined by the rules set by the cryptocurrency's protocol. BYDFi provides a platform for users to access and trade these digital currencies, but it does not control or influence their money supply. Instead, BYDFi focuses on providing a secure and user-friendly trading experience for its users, while leaving the determination of money supply to the protocols of the respective digital currencies.Dec 18, 2021 · 3 years ago
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